2017 DEC PASO Magazine

BUSINESS
Central Coast Economic Forecast 2016-2017
Bruce M. Curtis
Economically, “things feel pretty
darned good,” declared Economist Chris
Thornberg, but problems we’re avoiding
will come back to bite us, if we don’t talk
about how to fix them.
Much useful data could be gleaned
from leading economists who took a shot
at foretelling the economic future of both
America and San Luis Obispo County,
but their crystal ball became muddied
by advocacy that at times took a pointed
partisan tone.
Economic health was clearly important
to more than 500 business leaders and
elected officials who willingly ponied up
$135 each to attend the November 3rd
summit at Madonna Convention Center
in San Luis Obispo, the largest turnout
the economic summit has ever drawn.
Keynote speakers, Beacon Economists
Robert Kleinhenz and Chris Thornberg
observed that San Luis Obispo had not
just reached 4% unemployment — a figure
economists consider full employment
— the regional economy surpassed our
neighboring counties and blitzed ahead
of the state of California’s overall jobless
number of 4.8%.
Still, job growth remains sluggish, at 1%
over 2016, Kleinhenz revealed. A Beacon
study shows that most if not all employers
on the Central Coast are having trouble
finding and keeping employees, with
jobs going begging.
“Leaders should address housing needs,
develop industries to replace Diablo
Canyon, and get politicians to focus on
long-term economic issues...”
Steady economic growth for the past
five years is credited for the strong economy,
but both Kleinhenz and Thornberg
both predict slower growth and they
blame a lack of housing. That lack of
housing means a lack of employees, ultimately
slowing business growth.
“California is running out of workers;
240,000 to 300,000 new homes are
needed, but only 100,000 are being
built,” Thornberg warned that a shrinking
employee pool will slow business growth
and development.
“Job growth is at the limit,” because of
a lack of employees, warned Kleinhenz,
and while the current economic outlook
for the county remains strong, things
could soon stagnate if leaders fail to address
the lack of workforce housing.
Thornberg pulled no punches when he
put the blame squarely on local leaders
who choose to pursue affordable housing,
instead of building homes the market
demands.
Affordable housing programs don’t
work, because of the affects of “filtering”
i.e, where new home buyers vacate older
homes, which become available to lower
income buyers.
At the moment, they told attendees,
the percentage of people who can afford
homes in San Luis Obispo County is in
the low teens.
“I want to help you connect the dots:”
Kleinhenz explained, “Low labor supply
and slow home building are connected;
there is no labor market if people can’t
GATHERINGS OPENS ‘EMPORIUM’ ON PARK
Since 2013, Alesen Corella and the
Gatherings Thrift team has worked
with a mission to be a light in the
community by using the thrift shop as a
platform to pay-it-forward. The business
model gives patrons the opportunity to
select from a list of local charities that
they would like their purchase to benefit
after shopping at the store — and Corella
opened a Paso location called Gatherings
Emporium on Park Street.
Gatherings Emporium opened its
doors in time for the Elegant Evening in
November. The large space is laid out with
boutique quality clothing on the right with
an eclectic mix of unique decor and gift
items showcased on the left — where local
artisans are given open space to show
off a variety of goods with the theme of
up-cycle and re-purpose throughout.
Corella set the Emporium up with
an open concept where the goods are
blended throughout to give the store an
easy flow. The bottom line for Corella is
how much the new Emporium can give
back to the community in many other dif-
ferent ways as well.
“It is a really unique business model,”
Corella said, “and we are targeting
the locals. It is exciting that every purchase
is a gift back to the community. A
woman today was finding treasures she
liked, and she bought a lot. I know we
will get the tourists, but I want to give
back to the community, and make it a
place the community enjoys coming in
with great stuff at great prices!.”
Visit Gatherings Emporium at 1335
Park Street, or call 369-2599.
42 PASO Magazine, December 2017