Southern Nevada is seeing some signs of economic recovery, primarily in the tourism sectors
Monday, October 24, 2011Southern Nevada is seeing some signs of economic recovery, primarily in the tourism sectors
Southern Nevada is seeing some signs of economic recovery, primarily in the tourism sectors, though the region continues to lag in employment and business growth, a panel of experts said at Directions 2011, an economic forum sponsored by the North Las Vegas Chamber of Commerce.
What makes this recession worse than past recessions is the "debt bubble," said RCG Economics principal John Restrepo.
The global recession started with the collapse of the U.S. housing market, he said. People took out an excessive amount of debt, much of it in home equity lines of credit.
With high unemployment expected to be the norm for the next four to five years, Americans have increased their savings rate, Restrepo said.
It's good that people have learned to live within their means, but it's bad for an economy that depends on consumer spending for two-thirds of the nation's gross domestic product, he said.
Visitors are coming back to Las Vegas, but they're not spending as much. Gaming revenue and room rates have returned to 2005 levels, Restrepo said.
"You see a pattern here of stabilization. Last year we were still in a downturn," the analyst told about 150 North Las Vegas Chamber members Oct. 13 at Texas Station.
"The question I always get is, 'Are we diversifying our economy?' Sort of, but not really. The whole issue of diversifying the economy we've been struggling with. We're making some progress.
"We have 6,000 more jobs in the private sector than a year ago. That's good news. The challenge is you look deeper and they're mostly low-wage jobs, not driving demand for goods and services," he said.
Assemblywoman Marilyn Kirkpatrick, D-North Las Vegas, said legislators made great strides toward economic development with the passage of AB 449, which establishes a $10 million "catalyst fund" to provide incentives for new business development.
Kirkpatrick talked about the potential for inland ports in Nevada, distribution points for containers shipped through the port of Long Beach, Calif. It has to be within 35 miles of a railroad or major highway, which is pretty much anywhere in Clark County, she said.
Other cluster industries identified as ripe for economic development include information technology, manufacturing and renewable energy.
"In North Las Vegas, we have a huge corridor that we do nothing with. We have a foreign trade zone and we don't use it. We have a huge detention center sitting empty in North Las Vegas," she said.
The Skancke Group's Tom Skancke said "sustainability" is an overused word in Southern Nevada, but the reality is businesses are struggling to survive.
Instead of looking at cities such as Phoenix and Denver as competition, we should look at them as partners, Skancke said. With 85 percent of its goods imported by rail or truck, Las Vegas must take better advantage of its nexus of infrastructure.
"We can be part of what Marilyn (Kirkpatrick) was talking about with inland ports," Skancke said. "The primary generator of flights at McCarran International Airport is what's in the bellies of those planes. Our power lies in the connectivity of the regional West and we're not taking advantage of that. Why should we be competing with each other? Let's create a new regional vision.
Southern Nevada is seeing some signs of economic recovery, primarily in the tourism sectors, though the region continues to lag in employment and business growth, a panel of experts said at Directions 2011, an economic forum sponsored by the North Las Vegas Chamber of Commerce.
What makes this recession worse than past recessions is the "debt bubble," said RCG Economics principal John Restrepo.
The global recession started with the collapse of the U.S. housing market, he said. People took out an excessive amount of debt, much of it in home equity lines of credit.
With high unemployment expected to be the norm for the next four to five years, Americans have increased their savings rate, Restrepo said.
It's good that people have learned to live within their means, but it's bad for an economy that depends on consumer spending for two-thirds of the nation's gross domestic product, he said.
Visitors are coming back to Las Vegas, but they're not spending as much. Gaming revenue and room rates have returned to 2005 levels, Restrepo said.
"You see a pattern here of stabilization. Last year we were still in a downturn," the analyst told about 150 North Las Vegas Chamber members Oct. 13 at Texas Station.
"The question I always get is, 'Are we diversifying our economy?' Sort of, but not really. The whole issue of diversifying the economy we've been struggling with. We're making some progress.
"We have 6,000 more jobs in the private sector than a year ago. That's good news. The challenge is you look deeper and they're mostly low-wage jobs, not driving demand for goods and services," he said.
Assemblywoman Marilyn Kirkpatrick, D-North Las Vegas, said legislators made great strides toward economic development with the passage of AB 449, which establishes a $10 million "catalyst fund" to provide incentives for new business development.
Kirkpatrick talked about the potential for inland ports in Nevada, distribution points for containers shipped through the port of Long Beach, Calif. It has to be within 35 miles of a railroad or major highway, which is pretty much anywhere in Clark County, she said.
Other cluster industries identified as ripe for economic development include information technology, manufacturing and renewable energy.
"In North Las Vegas, we have a huge corridor that we do nothing with. We have a foreign trade zone and we don't use it. We have a huge detention center sitting empty in North Las Vegas," she said.
The Skancke Group's Tom Skancke said "sustainability" is an overused word in Southern Nevada, but the reality is businesses are struggling to survive.
Instead of looking at cities such as Phoenix and Denver as competition, we should look at them as partners, Skancke said. With 85 percent of its goods imported by rail or truck, Las Vegas must take better advantage of its nexus of infrastructure.
"We can be part of what Marilyn (Kirkpatrick) was talking about with inland ports," Skancke said. "The primary generator of flights at McCarran International Airport is what's in the bellies of those planes. Our power lies in the connectivity of the regional West and we're not taking advantage of that. Why should we be competing with each other? Let's create a new regional vision.
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