Regulatory uncertainty, sub-par gross domestic product growth, an inventory of distressed
residential properties and a Congress that sees compromise “as a four-letter word” — as Bernard Markstein, chief economist at Reed Construction Data, put it — all contribute to a feeling of uncertainty about the country’s economic growth, particularly in the architecture, engineering and construction industries hard hit by the recent recession. That was the consensus of three economists speaking at a recent webinar sponsored by Reed Construction Data.
In addition to problems in the housing market and severely repressed housing starts, office and retail construction have slowed and federal, state and local funding cuts negatively affect some needed infrastructure improvement and transportation work.
But not all is gloomy
Ken Simonson, the chief economist for the Associated General Contractors of America, said, “I have more good news than I’ve had in several years.” He proceeded to list several multibillion-dollar plant construction projects announced over the past few months — some that will start this year, some in a few years. (read more…)
“I’ve been delighted today to see a lot of optimism, but we don’t want to neglect the fact that a lot of businesses have been hit hard” by the recession and decreased access to capital, National Association of Women Business Owners President and CEO Diane Tomb said during a panel session on capital access at America’s Small Business Summit in Washington, D.C. There are many tough stories out there about businesses that had good credit and a good relationship with lenders but then couldn’t access credit.
Being able to access capital is a huge issue for small businesses, and it’s not one that applies only to companies in the startup phase, said panelist Roz Alford, founder and co-principal of ASAP Solutions Group. Every stage of growth for a business requires funding, so it’s an issue that keeps coming up.
In many cases, it seems the biggest restriction is a lack of education about capital access, Alford said. (read more…)
So Jamie Dimon is human after all. His firm has finally missed the fairway and found itself in the rough. His shareholders, employees and probably the White House are desperately hoping he can reach into his bag, grab his favorite club and pull off a Bubba Watson or a Phil Mickelson. Meanwhile, some rivals on Wall Street and antagonists in Washington are likely hoping he pulls a Jean van de Velde.
With Dimon facing some serious challenges in the coming days and weeks, a wise caddy would tell him to focus on these five key things.
- Keep your focus today. It is simply bad luck that this “tempest in a teapot” blew up right before JPMorgan’s annual shareholder meeting. If this loss had taken place six months ago, few would have inquired about it at today’s gathering. I suspect Dimon will receive questions about little else. Accountability will be key with that audience, so Dimon must highlight the swift actions that have been taken in that regard.
In 1944, Shinnston, W.Va., was devastated by a tornado and dozens of people lost their lives in a community only a few miles from coal mines. Although the community rebuilt itself, it faced economic difficulties in the 1980s and 1990s as did other small towns. It has recovered some and now has plans for a city centerpiece.
An old theater building that took up a city block at the entrance to the historic downtown was donated to the city, but leaks and disrepair rendered it unsafe and unusable, creating “a definite sense of economic depression in the downtown,” said Emma Clarke, Shinnston’s chief financial officer. The city demolished that building and West Virginia-based WYK Associates designed a community center that Clarke hopes will bring “greater resident satisfaction, a heightened sense of community pride and loyalty and a sense of progress.”
Shinnston, with just over 2,200 residents, wants to rebuild, prosper and recover. (read more…)
This week, SmartBrief is bringing you selected highlights from the Milken Institute Global Conference.
Emerging powers China and Brazil are wary of each other
Xi-Qing Gao, vice chairman of China Investment, said during the “Global Overview: Shifting Fortunes” lunch panel that shifting taxation policies in Brazil make him wary of investing there. Meanwhile, a Brazilian businessman expressed concerns about dealing with the Chinese. Unease between the nations signals hurdles as they pursue a global scale. CNNMoney
Fed won’t likely need to provide more stimulus, Williams says
John Williams, president of the Federal Reserve Bank of San Francisco, said the central bank could provide additional stimulus if the unemployment rate “got stuck,” but he doesn’t expect such circumstances. Speaking during the “U.S. Overview: Is the Recovery Sustainable?” panel, Williams also said the Fed will not allow inflation to become a problem. The Wall Street Journal
Uncertainty hindering M&A
Economic, regulatory and debt-burden uncertainties are preventing more mergers and acquisitions worldwide, members of the “Global Overview: Shifting Fortunes” panel said. (read more…)
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