Skip to main content

Elk Grove Citizen

Business Outlook is Looking Up Again

Feb 06, 2020 12:00AM ● By By Patrick Larenas

Speakers and hosts attending the Rancho Cordova Business Outlook and Economic Forecast. From left to right: J. Scott Alexander, Chamber Board Chair; Diann Rogers, Chamber President and CEO; Cyrus Abhar, City Manager; Amanda Norton, Economic Development Manager; Nick Sosa, Associate Planner of City of Rancho Cordova; and Daniel J. Cairns, Senior Vice President of Baird. Photo by Patrick Larenas

Business Outlook is Looking Up Again [2 Images] Click Any Image To Expand

RANCHO CORDOVA, CA (MPG) – “There is an enormous global reconstruction taking place as the United States steps away from administering the current world order, changing relationships in global trading, security and energy,” said Daniel J. Cairns, perceiving with some uncertainty the future development of current events and their world-wide effects on wealth. Cairns, Senior Vice President of Baird, was one of several economic, business and finance analysts featured at this year’s Business Outlook and Economic Forecast on Friday, January 31.

The Rancho Cordova Chamber of Commerce hosted the morning’s updates, which included city, state and national perspectives, with the City's leadership and economic team providing by far the most certain and positive perspective.

Diann Rogers, Chamber of Commerce President and CEO, informed on the City’s 2019 2nd quarter data, comparing it to the previous year. “Five weighed and adjusted indicators demonstrate a very slight overall decrease of .7% in the local economy," she said, "with housing down 5.5%, employment up 2.3%, sales taxes down 5.1% and TOT up 2%, residential and commercial building is the highest index up 66.3%.”

Rogers provided an overall historical perspective, considering 2010 the low reference point from the Great Recession. “Rancho Cordova is way beyond full recovery on four out of five indexes at 182.2 out of a maximum of 200 points,” said Rogers. “Only housing is barely 8% below the pre-recession level.”

City Manager Cyrus Abhar engaged the business community saying, “We know that for business to thrive, security and safety must be ensured. I am honored to inform that thanks to the implementation of various police department outreach programs and policing tactics, crime went down 21% during the 2014-2018 period, descending from an already previous low level.”

Invited guest Rob Lapsley, President of California Business Roundtable, a non-partisan organization, discussed the potential slow-down for California that could come as a result of new state legislation and spending proposed by Governor Gavin Newsom.

Lapsley said, “California has a $36 billion surplus which is unparalleled in the state. The problem with California is the cost of living is continually increasing beyond affordability for many residents, fueling problems such as the housing and homeless crises. California works, California grows jobs, California builds infrastructure… but a lot of the jobs being created are either very low-wage jobs or very high-wage jobs such as those in Silicon Valley.”

Lapsley said this really challenges Sacramento politicians who end up creating more social programs and spending more revenue as they attempt to keep up with the affordability crisis. He thanked Assemblyman Ken Cooley for his remarkable work in aiding the transformation of downtown policy during this phase of California's recovery.

Finally, Daniel J. Cairns, Senior Vice President of Baird, a wealth and finance management company, presented what he thought is the long-range forecast. “The United States has a great and vibrant future in 2030… but the international theater in which this will develop is undergoing the biggest renovation in 75 years.”

Cairns said that until very recently, the United States had been administering, paying and providing security for a global order which was constructed “not as an economic deal but as a strategic deal in the conflict against the Soviet Union."

"It wasn’t supposed to be an economic deal for us,” he said.

Cairns continued saying, "that deal... which was an expensive proposition, was mainly paid by the American middle class and as the U.S. steps away from this role, it will reemerge… stronger than how we entered this reconstruction phase.”

“Let me be clear,” Cairns said finalizing, “the part that is coming to an end is America providing security and order for other nations–at no cost.”