It’s been reported that a “construction job dollar” is worth up to three times its value to the local economy. Whether or not the rest of the community wishes to acknowledge it or is happy with it, we’re inexorably linked together in this recession.
Are the construction jobs that have been lost, which were skewed heavily toward the housing industry, gone forever? If so, where are the jobs to replace them going to come from?
I’m not the negative prognosticator. I’m essentially positive about Santa Rosa’s local situation. My sunny outlook isn’t based upon wishing, but rather upon several points.
First, we have the necessary infrastructure to our utilities in place. This wasn’t the case in the 1970s. Since then, Santa Rosa has upgraded its treatment facilities and built (and is using) a pipeline that takes effluent [treated wastewater] and pumps it up to the steam fields of The Geysers, and it’s generating power after injecting it into the depleted steam fields. We’ve recreated a sustainable energy source while getting rid of our effluent. Petaluma has spent more than $150 million on its wastewater treatment plant. Our wastewater is no longer being discharged into the Russian River, and we have capacity for more effluent with our existing facilities. Not many communities can say that.
Second, our water source, Warm Springs Dam, is in place. Yes, there are biological issues, but we have enough water to take care of our needs for recreation, business and private residences. Not many communities can say that.
Third, Highway 101 is finally being upgraded to fit our current needs. Several hundred million dollars have already been spent widening and improving our chronically congested local freeway system. Marin County has already upgraded its sections of Highway 101, and our local Santa Rosa-to-Novato stretch will be completely upgraded in the next four to seven years.
Fourth, we still have major businesses here that employ many college students in technology-based fields and manufacturing. We’re blessed with an “information corridor” that will continue to sustain our economy, and many signs indicate an upswing in Internet and computer technology areas. Our local population is well trained and available to handle those jobs.
Fifth, we have a diversified economy. Sonoma, Marin, Napa, Lake and Solano counties are a nice mixture of tourism, industrial, agriculture, technological and health-oriented job markets.
Finally, we have a very environmentally friendly population that’s diverse, creative and vibrant. People want to live here.
So with all this good news, where will the new jobs come from?
I believe they’ll come in the form of small- to mid-level manufacturing and high-tech companies taking advantage of existing local companies that they can make products for, and also taking advantage of our wonderful area to draw highly skilled workers here.
With the expansion of the small-level manufacturing industry, we’ll see a gradual decrease in the vacant office space we have such a glut of now, and we’ll see some of the housing supply get purchased by the new workforce. We have several very large projects already being designed that will attract businesses and workers: Sonoma Mountain Village and downtown Santa Rosa are major project “hubs” that will create many jobs, including many support jobs from the construction of those mega projects. Petaluma is finally moving toward building some major shopping areas that will also smooth out its sales tax revenue and will retain existing businesses as well as attract new ones. Novato is moving slowly toward several large projects as well.
Overall, I’m very “bullish” on our local economy. If our local elected officials don’t stymie the projects “on the drawing board,” and make progress streamlining and simplifying regulations that are now confusing and restrictive (at best), local business owners will be able to make plans based on understood regulations, anticipate market shares and move toward expansion.
Bottom line—hang in there—it’s going to get much better locally. Jobs are going to come our way.
John Bly is executive vice president of the Northern California Engineering Contractors Association (ECA). If you have any questions about the ECA, you can contact John at (707) 546-5500 or john@nceca.org.
