Measuring out a dose or two of optimism.We're an optimistic bunch here in the Valley. We're also smart and take a long-range view of things. Maybe that's why those in other parts of L.A. don't think we're as cool as they are. The recent San Fernando Valley San Fernando Valley Valley, southern California, U.S. Northwest of central Los Angeles, the valley is bounded by the San Gabriel, Santa Susana, and Santa Monica mountains and the Simi Hills. Economic Forecast released by CSUN CSUN California State University Northridge showed that area businesspeople were optimistic about the future despite concerns about the current economic downturn. * 38 percent of those responding to a survey said they expected to expand their plant capacity in 2008 while 5 percent expected to contract. Last year, 33 percent expanded. * 60 percent of Valley companies responding expect their gross sales Gross Sales A measure of overall sales that isn't adjusted for customer discounts or returns, calculated simply by adding all sales invoices, and not including operating expenses, cost of goods sold, payment of taxes, or any other charge. to increase in 2008 compared to 57 percent in 2007. Nearly 24 percent expect level gross sales and 17 percent anticipate lower sales. Most local businesspeople expect heightened or intense competition this year and businesses expect to expand their workforces this year. In fact, the average expected reduction in workforces in 2008 is 8.6 percent compared to 14.3 percent last year. Yes, there are some severe problems in the local economy. Residential real estate is troubled. Home prices have come down at double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" rates and home sales are at new lows. Foreclosures are edging ever higher. Construction permit activity slumped last year. So these troubled conditions in the real estate sector tend to trickle down Trickle down An economic theory that the support of businesses that allows them to flourish will eventually benefit middle- and lower-income people, in the form of increased economic activity and reduced unemployment. through the economy. Massive layoffs in the mortgage industry reduce the buying power Buying Power The money an investor has available to buy securities. In a margin account, the buying power is the total cash held in the brokerage account plus maximum margin available. Also referred to as "Excess Equity. of those people in that sector and related industries. Some uncertainties cloud things, too. A Screen Actors Guild strike this summer could send a jolt through the economy at a bad time. And of course there are fuel costs. But some experts say the housing sector has hit bottom or is close to it and then will recover. We'll get through this. Key businesses see long-term growth and are planning for it. This Business Journal tries to be very cautious in jumping on the media bandwagon of doom and gloom doom and gloom n. Gloom and doom. doom  -and-gloom adj. that is all too prevalent today. I
think our coverage reflects that. You see stories of businesses and
sectors of the economy that are doing well and stories about how
businesses are getting through this storm.
And some stories of optimism. Let us know the good and the bad out there. Business Journal Editor Jason Schaff can be reached at (818) 316-3125 or at editor@sfvbj.com. |
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