There’s little doubt that 2008 was the most eventful year for the economy in quite some time. In December, we found out the national economy had been in recession for the entire year. From January through November 2008, 1.9 million people in the United States lost their jobs and the national unemployment rate rose from 4.9 to 6.7 percent.
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Inflation was also big news in 2008. For most of the year, consumer prices were up by about 5 percent when compared to the same periods of 2007. This is more than twice the rate most economists would like to see. As recessionary conditions worsened toward the end of the year, inflation moderated somewhat, but still loomed as a concern.
Locally, Cochise County’s retail market slipped into recession in late 2007 and remained there through 2008. The most recent figures show sales countywide were down 5.2 percent from January through September, after adjusting for inflation.
The county’s restaurant and bar sales have also been in recession since late 2007. Although sales were up overall by 0.7 percent from January through September, sales were down in 9 of the 12 months ending September 30.
The county’s accommodation sales, which saw extraordinary growth in 2007, slipped into recession in April 2008. From January through September, sales were down by 5.2 percent. Sales were down every month from April through September.
Cochise County lost 1,325 jobs in the 12 months ending November 30, and the county’s unemployment rate rose from 4.5 to 6.2 percent. The hardest hit industries were construction and other services, each of which lost 1 in 5 jobs over the year.
Countywide, existing homes sales continued to struggle in 2008, with sales down 22.8 percent from January through September. New construction continued its decline, which began in 2006. From January through September, new home permits were down 17 percent compared to the same period of 2007.
New construction in some areas of the county, however, began to see a recovery in 2008. New home permits in Sierra Vista were up 5.3 percent from January through November, and permits in Benson during that period were more than double the number in the same period of 2007. Also in Benson, construction began on a new low-income multifamily housing development on State Route 80.
Benson also saw considerable commercial growth in 2008, including new retail centers near the Wal-Mart Supercenter. Construction also began on the new Gracie's Restaurant near the Holiday Inn Express on Highway 90. In Willcox, construction continued to move forward on a new justice complex, firehouse, and Willcox Chamber of Commerce and Agriculture building.
On Fort Huachuca, $100 million was approved in April for the construction of troop billets and other facilities. Also in April, the Huachuca City Town Council approved rezoning an 800-unit residential development for the Campstone property west of Highway 90. Overall, more than 2,000 homes are planned for the Campstone development.
Significant economic events in Cochise County in 2008 included the City of Douglas’ partnership with ACT to bring a call center to the city. The city underwrote the project, purchasing and remodeling a building to host the call center and purchasing the necessary information technology infrastructure. The call center is projected to create about 600 jobs in the city and began hiring and training employees in July.
Also in Douglas, the year 2008 saw the creation of the Douglas International Port Authority, with representatives from both sides of the border focused on expanding international trade. The city also saw construction begin on the long-awaited, three-story, 45,000 square-foot Best Western Hotel. Construction is expected to be complete in early 2009.
In 2008, Cochise College began new construction as part of its master facilities plan, which includes an addition to the science building and construction of a new career-technical building and student services building on the Sierra Vista Campus. Other pieces of the master plan include the construction of a new Willcox Center and upgrades to the Douglas Campus, including the construction of new dorms.
In May, the City of Bisbee hosted its San Jose Planning Charrette. The week-long charrette solicited input from the community regarding opportunities, suggestions, and concerns for the San Jose district. Based on that input, the charrette team developed several recommendations for the future development of the San Jose area. The charrette team recommended updating the city’s General Plan to include adopting a specific plan for the San Jose district; adopting a landscape ordinance; installing signage, wayfinding, and civic monumentation; and encouraging the use of public art in the San Jose area.
Also in Bisbee, Freeport-McMoRan Copper and Gold launched a feasibility study in 2008 to further explore the potential of resuming mining operations. Later in the year, the study was placed on hold in response to broader economic conditions nationally and internationally, including a decline in world copper prices. In the Elfrida area, Aurelio Resources Corp. continued discussions of moving forward with open-pit mining of copper, zinc, lead, gold, and silver.
In Sierra Vista, plans continued to move forward for the construction of a new Wal-Mart Supercenter, Sam’s Club, and Sam’s Only Gas Station. Construction is expected to begin in early 2009. In December, it was announced that the project would be downsized from its original plans.
In March, the Cochise County Board of Supervisors voted unanimously to amend zoning regulations to deny subdivisions that cannot prove 100-year water adequacy. The new regulation is the first of its kind in Arizona.
On a particularly sad note, 2008 saw the passing of Ken Jones, the founder of the Cochise College Center for Economic Research. Ken was a pioneer in rural economic research, bringing to Cochise County a multitude of research services that simply did not exist elsewhere, outside the nation’s major metropolitan areas. Ken was 50.
If you have any questions on the economy, please contact the CER at (520) 515-5486 or email us at cer@cochise.edu. Be sure to check out the CER’s website at www.cochise.edu/cer.
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