Anchorage Daily News
 

Confidence in Anchorage economy on the rise
GROWTH BARRIERS: Majority cited health care costs as limiting.

By ELIZABETH BLUEMINK
ebluemink@adn.com

(01/28/10 01:01:25)

A new survey of 213 business and organizational leaders in Anchorage shows they feel somewhat more confident about the local economy and their own operations, compared with last year's findings.

The Anchorage Economic Development Corp. released the results of the survey -- conducted from Dec. 8 to Jan. 8 -- on Wednesday. A similar survey was published for the first time last year by the nonprofit corporation, which promotes Anchorage as a place to do business.

In addition to publishing the survey findings, the AEDC on Wednesday also published its local economic forecast for the coming year. It predicts the city will lose about 1,200 jobs this year, a decline of less than 1 percent from last year.

But job growth could begin again before the year ends, said Bill Popp, AEDC executive director.

Popp said the survey shows that local businesses share the AEDC's outlook.

Among the findings:

• 49 percent of the participants said their employment levels will stay the same this year, though 17 percent expect to make cuts. That's an improvement from last year, when 27 percent of the respondents said they expected to cut jobs.

• 58 percent of the participants listed health insurance costs as the top barrier to growth this year. Last year's participants listed high energy prices as the biggest barrier.

• Looking back to how they did last year, 40 percent of the participants said their profits decreased from 2008; 36 percent said their profits increased.

• The proposed North Slope gas pipeline, Cook Inlet resource development and a proposed in-state gas pipeline were listed as the most important projects for the Anchorage economy.

The 213 participants who filled out the Web survey from Dec. 8 through Jan. 8 work in professional services, communication, engineering, government, nonprofits, mining, banking and other fields, according to the McDowell Group, a Juneau-based consulting firm that ran the survey. McDowell said the respondents represented a broad cross section of the Anchorage business community in terms of size and business sector. In particular, the response was strong from the professional services and media/communications sectors, McDowell said.

The AEDC jobs forecast predicts Anchorage employers will support 150,700 jobs this year, down from 151,900 last year.

The job losses that began last May -- the start of Anchorage's mild recession -- should end by mid-year, the forecast says.

Health care will be the strongest industry; construction and tourism will be the weakest.

Here are details of the forecast:

• The health care industry should grow 200 jobs to 15,800 total.

• State, federal civilian and local government employment will remain flat at 31,100 positions.

• Business and professional services also will be flat at 18,600 jobs.

• The oil and gas industry will be flat at 2,600 jobs.

• Employers in airlines and other transportation businesses will have 11,200 jobs, down 200 from last year.

• Retailing will fall 300 jobs to 21,700 positions.

• Construction will drop 400 jobs to 8,500 positions.

• Hotels, restaurants and other leisure-hospitality employers that rely on tourism will support 14,900 positions, down 500.


Find Elizabeth Bluemink online at adn.com/contact/ebluemink or call 257-4317.

 


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