2021: Year of Change (January Newsletter)
/Well, we are 28 days into the New Year and there has already been plenty of change. It was a remarkable month, from insurrection to inauguration. On the local scene there seems to be room for guarded optimism as well. At our January Board of Directors meeting this week, we enjoyed a presentation from various members about what they forecast for 2021. Here’s the top line:
Local PPP 2.0: Steve Espino, Banner Bank: funds are flowing again to help businesses. The application process is simplified. Application turn around is much quicker. Go to the Banner Bank website www.bannerbank.com for more PPP qualification guidelines. Funds are still available.
Consumer assistance: Hard to find a consensus, but it looks like there will be a third stimulus round of up to $1,400 for income earners under $75,000.
COVID Vaccine Assistance: Billions are allocated for STATES to speed inoculations.
China: Nikia Clarke, EDC: The Biden administration will calm relations with China, but trade policies will remain unchanged. Tariffs will likely remain as is for the foreseeable future. Trend to decentralize manufacturing remains.
Shipping Logistics: (see our new AirGroup monthly report section below) Chad Sprecher, Airgroup: 2 week ship transit time, but 10 to 15 day anchor time. 3 to 4 days for Clearance. Chinese New Year backlog is at historic highs. Expect delays.
Retail Trends: Dave Nash, Sun Diego: US retail is strong, constrained by product availability and regulations regarding consumers in-store. Hard goods in surf, skate, ride, dive, golf…. on fire. At last!
Commercial Real Estate: Andy Ewald, CBRE: very bullish on San Diego. Tech companies (and BIG investment dollars) are flowing into San Diego. Amazon will have 5000 employees here soon. Mixed space, office plus small warehouse space, is at a premium. Warehousing is being leased as fast as it is being built. Office space is reconfiguring but on the comeback with many companies reducing their footprint but planning on reinstituting modified office hours soon.
So we are bullish as well. San Diego will have a very good 2021. COVID will be controlled. Consumers will spend. Health and fitness continue to rise. Businesses will get support. Supply will continue to be back logged. Add it all up: 2021 might be a record year for SDSI Members!
-Bob
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