Readers who regularly visit this Web site have seen a new blogger contributing to the content here. Tim Fausch, publishing director of BNP Media’s Architecture, Engineering & Construction and Mechanical Systems groups, has been submitting a series of blogs he calls, “Adventures in Construction.”
One of the recent submissions is called “California Dreaming...or Nightmare?” In it Fausch examines the California economy and why the construction trades have loved it all these years. He lists some amazing facts: the state’s a $1.7 trillion in gross domestic product, the fact it produces 13 percent of the total U.S. gross national product and the fact that 12.5 percent of the U.S. population lives in the Golden State.
But California is no utopia, however. It, like almost everywhere else these days, is seeing its share of budgetary problems, high foreclosure rates, precipitously falling home prices, lagging retail sales and a general malaise brought about by the bursting of the various and sundry “bubbles.”
Fortunately, history shows us repeatedly that economic downturns, even the worst in history, are transient. And, whether we're talking about California specifically or the country as a whole, it could be argued that these downturns have served as a cleansing of the business gene pool—the weaker operations fall away making the survivors stronger. Meanwhile, the hollerin' heads on the cable news "analysis" programs screech and speculate about what kind of horrible consequences the current economic troubles may bring TOMORROW, The Machine, while slowed for the time being, does in fact continue to roll on.
While California is the focus of Fausch’s Blog entry, next month Reeves Journal will publish the results of our 2008 Western Trends Survey. Make sure to have a look and to be prepared to take action on the market information provided by your peers. Keeping in mind that everything's relative, I think the results may provide a bright glimmer or two.
Cheers.