Is the Local Daytona Beach Economy Stabilizing?

Posted by admin on August 10, 2009 under Good Info - Read It | Be the First to Comment

DAYTONA BEACH — The local economy is showing signs of stabilizing, if not recovering, and Volusia County officials highlighted some of the bright spots for community leaders on Friday.

“The good news is, despite the reports in the newspapers, the world is not coming to an end,” said Phil Ehlinger, interim director of the county’s Economic Development Department.

Ehlinger and County Chairman Frank Bruno presented the county’s second-quarter economic development update Friday to a group of business and political leaders gathered at Daytona Beach International Airport.

Ehlinger said companies, such as Raydon Corp., Sparton Corp., AO Precision Manufacturing and KVar Energy Savings, are expanding their local operations and adding jobs.

Three new companies — Brothers Performance, AmeriBridge and CartTech — have opened in the county this year. And several others are considering Volusia for expansion or relocation, Ehlinger said.

Volusia’s work force grew 1 percent during the past year, ahead of the national and state growth rates, Ehlinger said. And the average wage for a Volusia County worker rose by $1,000, even as unemployment rose to 11.3 percent.

“We are seeing positive signs that we are coming out of this recession,” Bruno said.

Ehlinger said the real estate numbers are cause for optimism, too.

“Real estate and tourism will lead us out of recession, and construction will follow,” Ehlinger said.

Commercial construction permits went from 19 worth $27.2 million in the first quarter of this year to 20 worth $17.1 million in the second quarter. Ehlinger said the sagging economy prompted many companies to shelve projects, at least temporarily.

He said June was a good month for residential building permits, bringing the three-month total to 178 worth $41.1 million, compared to 124 worth $34.2 million in the first quarter. He also said the inventory of foreclosed homes is being reduced through sales.

“Hopefully, we are off the bottom,” Ehlinger said. “It is heartening that 178 homes are being built at that dollar value.”

But the numbers remain far short of the 375 residential permits issued in the second quarter of 2008. Those totaled $99.5 million.

In April, May and June, jobs in retail trade grew by 266, and hospitality grew by 167. But construction, manufacturing, professional and business services, education and health services, and local government/schools all lost 200 or more jobs.

Bruno praised the county’s efforts to retain and recruit businesses and jobs. But he said the best results will come from a combination of local and regional leaders. “We talk about being global, but we need to be thinking regionally and acting locally,” he said.

By JIM WITTERS
Senior Business Writer