As the economy continues on its path of slow recovery, economists point out some very positive signs. In the last year, gasoline prices have dropped, which they say should continue to improve retail sales as consumers have more money to spend on other things; the housing market is recovering; more people are working; and consumer confidence is up.
Few towns, however, can report the kind of progress that Prescott Valley is experiencing. The town’s economic development manager, Greg Fister, says in the first quarter of this fiscal year, retail sales are up a dramatic 33 percent. And, he says, this is the fourth consecutive year of record sales.
“The last couple years have been gangbusters here. The reason is because we’ve increased the square footage of retail within the town limits by almost a million square feet, which has allowed people to keep their dollars here. And with the economy improving overall, people are spending more money.”
Fister credits the opening of stores like TJ Maxx, Sprouts Farmers Market, Dick’s Sporting Goods and the Walmart Supercenter for the massive increase in retail sales.
The medical field is another area of growth and promise, says Fister. “When Yavapai Regional Medical Center opened its campus out here, all of a sudden, it became the largest private employer with nearly 600 employees. And it continues to add programs.”
Meanwhile, the construction industry is improving, but Fister says finding skilled workers is the biggest challenge since many left Arizona when the housing market crashed in 2007. “The demand for construction is here but the crews aren’t, so they can only build a certain number of houses.”
All together, the Quad Cities area has seen an increase of some 1,700 jobs in the last year, says Northern Arizona University Professor of Economics Ron Gunderson, Ph.D. Job growth has improved by more than five percent in the fields of trade, transportation and utilities, and just under five percent in the leisure and hospitality industries.
Another plus for the Quad Cities area is the cost of living. “It’s three percent lower than the national average and only two percent higher than the greater Phoenix area,” said Gunderson.
Looking forward to the New Year, economists predict 2015 will be better for the state as a whole than 2014, particularly if new job creation continues to generate an additional 200,000 new positions each month as it has over much of 2014. QCBN
By Bonnie Stevens
Quad Cities Business News
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