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Industry News

Mortgage Applications Rise in Latest Week

Reuters

Alabama residential sales improve 2 percent in July

By Alabama Center for Real Estate (ACRE)

Appraisal Institute Unveils New Educational Offering For Reviewers

By R. Shawn Brantley, Brantley & Associates

Jobless Claims in U.S. Have Dropped About as Much as They Can

By Victoria Stilwell, Bloomberg News The four-week claims average as a share of the workforce stood at 1.6 percent at the end of last month. The record low was reached in May 1969 at 1.2 percent. In more recent times, the low was in April 2000 at 1.4%.

How a Zillow-Trulia Merger Could Finally Change the Business of Real Estate

By Brad Stone, Bloomberg Businessweek, Technology

Industry News

Key Messages on U.S. Manufacturing

Over the past several years, numerous studies and articles have touted the "restoring" of manufacturing jobs to the U.S., leading readers to believe that larger numbers of net new manufacturing jobs will be created here.  A recent study prepared for and funded by the NAIOP Research Foundation - written by L. Nicolas Ronderos, New York director of Regional Plan Association - concludes, however, that the net result of this reshoring trend will be stabilization of manufacturing jobs rather than net growth.  Some industries will add jobs as others shed them, resulting in no change to the total number of manufacturing jobs. 

According to "Stabilization of the U.S. Manufacturing Sectors and Its Impact on Industrial Space," after losing six million jobs between 2000 and 2010, the sector in the aggregate is expected to stop losing jobs and level off at an employment level of roughly 11 million jobs between now and 2020.  In other words, the sector is projected to add as many jobs as it sheds in the coming years, changing a decade-long trend of losing more jobs than have been added.

What does this mean?  Overall, employment stabilization in the manufacturing sector bodes very well for the employment picture in the overall economy.  While industrial-related jobs are projected to level off, service jobs are projected to continue to be added on a net basis.  The result is that 20 million net new jobs are projected to be created in the U.S. between 2013 and 2020, compared to the slight loss of about five million jobs that occurred between 2000 and 2010. 

Of most importance to the real estate community, while industries will expand, is where will they locate, and how much space will they need?  The table below presents some answers.  The report indicated that, in general, industries creating products that require low levels of labor, such as chemicals and technology, likely will expand in the U.S. in terms of their overall output, but will not necessarily expand in terms of their square footage requirements. 

TOP FIVE TOP EXPANDING INDUSTRIES
(In terms of space use)

INDUSTRY 2013-2020 AREA 
(change in millions of SF)


Fabricated metal product 86.5 Great Lakes & Southeast
Plastics & rubber products 61.5 Great Lakes & Southeast
Wood products 45.2 Southeast & Far West
Nonmetallic mineral products 32.8 Southeast & Great Lakes
Furniture & related products 25.8 Southeast & Great Lakes

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