Southwest Business Forum summary:
The annual Southwest Business Forum recently took place at Fort Lewis College and featured Scott Anderson, senior economist for Wells Fargo, with the national perspective. Also, Rich Wobbekind, CU Business School faculty and state economist for Colorado, provided state statistics. Tino Sonora, FLC Business School economist, shared regional data.
The predictions for next year are mixed with many signs indicating that the worst of the recession is behind us. Growth in the US economy is anticipated to be 4.3% in 2010. Real estate continues to be a major impediment to the recovery. Four states (California, Arizona, Nevada and Florida) contain the preponderance of mortgage delinquencies and foreclosures. About 14% of all mortgages nationally are delinquent or in foreclosure.
On the state level, construction and manufacturing jobs continue to decline and it might take 5 years to return to levels seen prior to this recession. The number of jobs declined in Colorado during 2009 by 3.2%. Dr. Wobbekind termed the period 2000-2009 as the "Lost Decade." The good news is that retail in Colorado is anticipated to increase 2.7% in 2010. Retail sales for 2009 were -12% in Colorado.
Colorado's lodging and accommodations industry took a big hit in 2009. Occupancy rates declined 9%. Daily rates declined on average $12.71 per room or 9.6%. This happened when lodgers lowered their room rates to attract more business volume.
Dr. Sonora reported income in this region remains at 85% of the state average. Tourism may rebound due to pent up demand and the value Durango provides as a drive market destination.
