Hottest Trends on Main Street

Readers of my blog know that I’m an unabashed patriot.  I love my country, while I’m not always in love with my government, and this time of year my thoughts turn very close to home.  Lately, many of us both professionally and personally are thinking, talking, worrying and dreaming (or bad-dreaming!) about the economy.    The good news is there is some good news, at least at local levels.

Today’s entry is an article from the National Main Street Center at the National Trust for Historic Preservation on some trends:

By Linda S. Glisson | From Main Street News | June 22, 2011 |

Are entrepreneurs growing on Main Street? How is Main Street doing compared to big-box stores and strip malls? Do people want to live downtown?

Every year, the National Trust Main Street Center conducts a survey to discover the latest trends on Main Streets nationwide. This year, the picture, as shown by the responses of 500 local Main Street programs, is one of high energy in a slow economy, with lots of innovation, ranging from strategic uses of social media to cool “green” projects. Here are some of the major trends.

Strong business growth. Despite the cash crunch that is preventing small businesses from getting needed financing to expand, Main Street districts reported surprisingly strong growth in new businesses after a big drop last year. More than 5,000 businesses opened on the Main Streets of responding communities, nearly equaling the 10-year peak reached in 2006.

Competing with the strip. Half of all Main Street programs reported that the economic health of their commercial districts was on par with nearby communities. Even more impressive, however, is that 35 percent are doing better than surrounding commercial centers, and nearly 30 percent reported the closure of at least one big-box store in their area.

New entrepreneurs. Nearly 50 percent reported new entrepreneurs in their districts. From boomers to women to those under 30, Main Street is attracting new business owners, many from outside the community. In Woodville, Mississippi, the Main Street program’s track record in heritage tourism and preservation inspired a couple from New Orleans to buy a building on the courthouse square. As a tax credit project ¾ the Woodville Loft and Studios ¾ will soon bring 12 storefronts and condos to this small town. And in a great homecoming story, a 21-year old native of Sidney, Nebraska, came back after college with the dream of opening her own business. So Historic Downtown Sidney connected her with a retiring business owner, and helped with her first six months rent. This way, the Main Street program found a way to re-energize an old business, while creating a future for a new entrepreneur… one of its own. And in the northwest, Oregon City Main Street launched a video marketing and recruitment campaign for creative professionals who are interested in growing their business in a funky downtown setting. Their campaign kicked off last year and brought in eight new businesses in the first few months.

Living downtown. Housing on Main Street seems to be gaining steam as a niche for historic commercial districts. A recent National Association of Realtors Survey shows that 77% of homebuyers are seeking central locations with the type of pedestrian-friendly features found on Main Street.  This year’s Trends Survey confirmed that demand for housing might be outstripping current developer interest. In Nacogdoches, Texas, for example, the Main Street manager gets constant inquiries from people looking for that downtown lifestyle. Only 8 housing units are currently under construction, but the manager says the downtown market could easily absorb 50 more this year.

“Hot Green.” Where are the hottest innovations right now? Where are young people focusing their attention? What types of organizations are gaining members? The answer: if it’s green, it’s growing! The sustainable communities movement is laying the foundation for a major shift in the way we use land and other resources and the way we plan cities. Sustainable innovations to watch out for include form-based codes, energy codes, and “location efficiency.” What’s that you say? A new study by EPA confirms what we in the preservation field have suspected all along: that where we construct our buildings has just as big an impact as how we construct, in terms of energy consumption. This new paradigm is called “location efficiency”, and is beginning to make the case for dense, walkable districts, such as Main Street. For the first time, guidelines and funding priorities may shift in favor of preservation and Main Streets, simply because of our “efficient” locations!

The bottom line for this year, Main Street is not only holding its own as the economy slowly recovers; it is moving ahead with great energy, optimism, and innovation.

Wisconsin’s Partnership for a Stronger Economy

On Monday, the Wisconsin Assembly’s Partnership for a Stronger Economy will be holding a meeting in Manitowoc with business leaders, lawmakers, and state officials.  Representative Tom Nelson has extended an invitation to both myself and our members to be part of this work group.

The Partnership is a bipartisan working group that has been charged with finding ways to make Wisconsin a better place to do business.  Additional information about the Partnership and Monday’s meeting is below. I’ve extended invitations to many people individually since I received it yesterday, but, please let me know if you would like  to attend by emailing me at cdetrick@deperechamber.org or commenting here.

Information on the meeting is below:

Partnership for a Stronger Economy (PSE) hearing from 1:00-3:30 p.m. on Monday May 24^th in the auditorium at Orion Energy Systems 2210 Woodland Drive in Manitowoc.

Tentative Agenda:

1. Welcome and Introductions: Orion Energy Systems
2. Economic Development Needs of NE Wisconsin
3. Legislation Session Wrap Up
4. Department of Commerce: continuity and consistency
5. Wisconsin Competitiveness Study
6. Follow-up on Ideas from Previous Meetings
7. New Initiatives
8. Next Meetings: 1 p.m. Friday June 25^th and 1 p.m. Monday August 30th

There is website on the Partnership that includes information such as biographies of members, upcoming meetings, and media articles.  The link is: http://legis.wisconsin.gov/assembly/committees/wipartnership/index.htm

The previous meetings are on Wisconsin Eye. Click on “Video Archive,” “Around the State,” and “Public Meetings” to reach the Partnership video links (the meetings were in December and November of last year, scroll down the page to find them).

Manufacturing Reboot

It’s time for a re–think and reboot for many marquee manufacturing corporations, as they report their 2009 earnings.

Prompted by the economic recession, major manufacturers are re–evaluating their businesses to remain competitive and profitable. In some cases, this means shedding operations. One example is Dow Chemical which is selling its basic chemical factories –– a $2 billion operation –– in favor of more profitable specialty chemicals. The company is closing six chemical plants in Louisiana and Texas as part of this strategy. Whirlpool is also retrenching: it reduced its manufacturing capacity by 10% in 2009 and moved some operations to lower cost Mexico in response to a 9.6% sales decline. Jeff Fettig, Whirlpool chief executive, recently summed the situation up succinctly, “We are emerging from one of the most challenging economic environments we’ve seen in decades.”

For others, it means expansion. Intel Corporation sees opportunity in semiconductors–– it made headlines in the midst of the recession by announcing an aggressive two–year $7 billion investment in facilities in Chandler AZ, Rio Rancho NM and Hillsboro OR.

Analysts point to several broad changes currently underway across the manufacturing sector. First, many companies are shifting away from heavy sectors like automobiles and chemicals toward higher–tech products. Second, companies are being forced to adapt to lower demand for products; the auto industry, for example, is projecting sales between 11.5 and 12.5 million cars and trucks in 2010, well below the peak 17.5 million units sold in 2005. Third, manufacturers are controlling costs by relocating facilities to lower cost locations. This trend is already evident in the chemicals and appliance sectors. Peter Huntsman, chief executive of chemical manufacturer Huntsman Corporation, offers this blunt assessment: “The chemical industry is leaving the United States and it won’t be back. When demand picks back up, they’ll build new capacity overseas.”

The numbers are startling. U.S. industrial capacity fell by the largest year–to–year decline in history –– a full 1% decline in 2009 as the goods–producing sector lost 2.3 million jobs in just one year. Overall, the U.S. capacity to produce autos and chemicals fell 4.4% and 1.7% respectively –– the largest declines since 1949, according to the Federal Reserve. Yet, U.S. capacity to produce semiconductors grew 10.4%.

Economists are watching the manufacturing sector closely because responses by manufacturers in a post–recession world will determine when job growth resumes.

Source:
“Radical Shifts Take Hold in U.S. Manufacturing,” by Mark Whitehouse. The Wall Street Journal. February 3, 2010.

Experts see bright future for Wisconsin downtowns

From UW Extension’s Bill Ryan and Chuck Law

There are compelling reasons to be optimistic about the ability of Wisconsin’s small
town business districts to rebound from the economic downturn, according to experts
from the University of Wisconsin-Extension.

“Downtowns can take advantage of consumer, economic and environmental trends that direct activity back to their central business districts,” says Bill Ryan, community
development specialist with the University of Wisconsin-Extension. “While downtowns are all different, opportunities are out there.”
According to Ryan, downtowns have historically met important needs, such as housing, office and retail space and entertainment. Unlike shopping centers developed for
national retail chains (which are now experiencing vacancies), downtowns serve different
functions that allow one sector to rise even as another declines.  “Many downtowns have recession-proof draws,” says Chuck Law, community planning and design specialist with UW-Extension.
“While high-priced restaurants and live theatre might be patronized less in a recession,
farmers’ markets and children’s museums will still be on the list of local outings. And many
downtowns’ focus on education, health care and government services further insulates
them from consumer spending swings.”
Downtown housing continues to be an important component of the retail mix. While condo development and sales have slowed, the market for rental housing is strong in many markets. Long-term, demographic trends remain favorable for downtown living given both older and younger people’s growing preference for urban, amenity-rich living.
Ryan also points out that downtowns are benefiting from a growing interest in supporting
local economies. In many cases, consumers are focusing more on value than price,
factoring in the cost of travel and the service of local retailers. Personal attention, unique
products, and outstanding service and support– often the hallmark of downtown retailers– will continue to attract new customers seeking a local economic connection.
Supporting downtown retailers can even be considered “green,” Ryan says.
For example:
–Downtowns are centrally located and convenient and trends indicate they will become
even more accessible with better bus and light rail systems. Local governments are
paying attention to strengthening public transportation systems with support from
the federal government, which is seeking to reduce dependence on fossil fuels.
–Volatile gas prices are causing people to rethink their driving and how much fuel they
can save by working or doing business with establishments conveniently located downtown.
–Environmental benefits accrue from reusing and improving structures rather than planning new development. Significant opportunities exist to retrofit existing buildings with green technology. Both energy-efficient improvements and weatherization of housing
and public buildings are included in the American Recovery and Reinvestment Act of
2009. While new construction has slowed, the remodeling industry has been less affected
by the economic downturn. More and more communities are finding creative uses
for existing buildings. Support for entrepreneurs is another plus provided by central business districts.
“Downtowns are places that truly support entrepreneurship,” says Ryan. “The environment provides social and business interaction, diversity, authenticity and amenities that appeal to people with various talents.” And families are turning more to pedestrian-friendly activities close to home, frequenting local libraries, museums, theaters, parks, athletic facilities, civic buildings, schools, coffee shops and retail establishments for entertainment.
“Downtowns offer a ‘sense of place’ that is increasingly important to residents,” Law
notes. “The community’s natural, social and cultural amenities, places to worship, dine,
shop, and relax, and the histories and memories associated with those elements, are often
found in and around downtown.”

Ryan advises communities to take full advantage of their downtowns’ competitive
strengths. “Community leaders can build upon downtowns’ diversified mix of uses,
contributions to the local economy, promotion of sustainable development, support for
entrepreneurship, and sense of place.”
For more on UW-Extension’s work to support and revitalize Wisconsin’s downtowns,
go to http://www.uwex.edu/ces/cced/downtowns/index.cfm