Over 1,000 people gathered for lunch today to hear the Anchorage Economic Development Corporation’s (AEDC) annual 3-year Economic Outlook. The program started with Anchorage Mayor Dan Sullivan sharing a few things about Anchorage’s current economic climate. He was proud to announce that Anchorage had just been named the 9th best city to live in for 2013 by Kiplinger.com. He also noted that Anchorage has had a budget surplus for four consecutive years and seen its bond rating increased to AA+. Both of these accomplishments speak to the strength of Anchorage’s economy and labor force. Sullivan also highlighted that Alaska was ranked 5th for entrepreneurial opportunity. Mayor Sullivan wrapped up his presentation with information about upcoming projects for Anchorage and left with encouraging remarks about the state of Anchorage’s economy.
Bill Popp, President & CEO of AEDC, continued the presentation by sharing the 2013 jobs update. In 2012, Anchorage saw an increase of 3,400 jobs, which represents 2.2% growth. The largest growth was seen in professional and business services. Through June 2013, we saw a 1.0% growth with 1,600 new jobs. He continued with the complete results of the 3-year outlook which looks at everything from population statistics, employment numbers and important pieces of the Anchorage economy, including air passengers, freight and building permit values.
A few highlights from the presentation show that Anchorage’s population numbers have been steadily increasing after a small dip in 2007 & 2008 and look to top 300,000 in 2013. Employment numbers are also on a steady increase and are predicted to grow at a rate of 1-1.5% over the next three years. Both air passengers and air freight saw a dip in 2009, but have been steadily increasing in the past four years. Building permit values have also seen an increase in the past few years and the increase looks to continue for the next three years. The forecast was mainly positive and it looks like Anchorage will continue to have a strong economy, but Popp warned that the low level of unemployment and high cost of housing will make it difficult to find and keep strong employees.
Popp concluded his portion of the presentation with notes on the Anchorage Consumer Optimism Index which measures the level of confidence that residents have in the local economy. Through quarter two of 2013, Anchorage residents show relative confidence at 61.4%. This is higher than the past few years and is continuing to increase. Consumer confidence is a good indicator of economic strength. Anchorage’s short-term forecast is strong and it is a good time to be in Anchorage. The municipality has its challenges, but many see those challenges as opportunities for growth.
To conclude the luncheon, guests heard from Gallup Chairman & CEO, Jim Clifton, who shared his thoughts on the current business climate. He also shared stories from his career and encouraged attendees to focus on the promise of entrepreneurs as the way to grow the US and global economy.
For the full presentation from today’s luncheon, please visit www.aedcweb.com.
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