Financial forecast
It’s here: 2012. We made it to a brand new year. What lies ahead? Are there any signs of economic renewal? We asked several of Columbia’s top business leaders what they see on the horizon. Here’s what they had to say:
John D. LaRocca, General Manager
The University Club of MU, University Catering & Event Services
We have started seeing an increase in spending by individuals and companies. People have been cutting back for so long that they want to splurge a bit. I think people are also willing to pay for quality. When they do decide to go out, they want quality food and service. Food service operators that have adapted over the past few years are the ones that will continue to be successful.
Joe Moseley, Vice President, Public Affairs
Shelter Insurance
Storms and the investment climate are the two largest factors in whether an insurance company has a good year; and there is no way to predict either. New trends include increasing use of social media for marketing, and use of the internet to offer more services. There is also heightened interest in enacting strong building codes to lessen the effect of major storms.
Rusty Strodtman, General Manager
Columbia Mall
With the election year upon us, consumers will be nervous about the political future; and as a result, spending will not increase much. Gas prices will continue to play a big role in relation to consumers’ disposable income. Department stores have found their way back; and mall occupancy rates continue to rise as tenants shift from outdoor centers to regional malls with proven sales history. Regional malls will see more national retailers close stores due to bankruptcy and reorganization.
Daniel Rothery, President and CEO
Boone Hospital Center
The health care industry will continue to be in a period of transition. As health care reform legislation continues to roll out, there will be continued pressure on the industry to evolve. The good news is that our local health care community is very capable of staying ahead. We will also see hospitals working to improve facilities. In 2011, Boone Hospital opened a 128-bed patient tower with all private rooms. One of our projects in 2012 is renovating our existing rooms to match the comfort and safety of our new rooms. We will also see a move toward medical records technologies and new ways to access health information online.
Steve Erdel, President and CEO
Boone County National Bank
While it will be slow, economic growth in both the business and consumer sectors is looking good. Wall Street is going to sort itself out, which will calm people’s nerves. Community banks will be a bright spot. People are turning away from the big banks and choosing to work with local experts. Electronic banking is exploding. We’re introducing a new mobile product in 2012 that will give our customers unprecedented control of their financial picture. Businesses will see big changes to the way they handle money. Cash management will be critically important. Small business will start to take off in 2012.
Billy Sapp, President
Emery Sapp & Sons
I don’t see the times really changing drastically in the near future. I expect to see only a moderate increase in commercial construction. The industry is not expanding or hiring because of the stagnant economy and political atmosphere. We will likely see a trend from state contract work to federal contract work since states are dealing with budget crunches and having funding difficulties. Private developments will likely be fewer and smaller in size than we have seen in the past due to tighter credit standards.