How will SRS funds affect our economy? 4/2/2009 12:07 AM
By MICHAEL W. GIBBONS Managing Editor
With the announcement of a federal $1.6 billion infusion into the Savannah River Site, many are signaling Monday as the day the recession recovery began in Aiken. The funds will target 30 months of accelerated clean-up and come with potential impacts that are wide-ranging and far-reaching. The news has area economic leaders and watchers anticipating Aiken County's rising economic tide.
THE LOCAL ECONOMY
Dr. J. Ralph Byington, dean of the School of Business Administration at USC Aiken, said there are definite short-term positive implications, as well as potential long-term impacts.
"It's a big deal in a very compressed time frame," he said.
Byington said the potential reduced footprint at the Savannah River Site provides opportunity for repurposing the land, such as for an energy park, something that could bring sustainable economic impact.
"If they are successful with some of the energy research that they have proposed with this redirected land, this could have a great impact and have a long-term impact," he said.
Byington also said that consumer confidence does affect the economy, for better or worse.
"The fear impact has had a sustaining impact on any recovery. If people are living where they're afraid to actually use their resources and reinvest their resources, then that's going to have a very direct impact," he said. But, with positive news bringing general optimism, the opposite end of the spectrum holds true.
"Being able to create that atmosphere where people are willing to reinvest in their community, that's going to be a positive," he said.
Ultimately, Byington sees recovery in the future, with the stimulus funds serving a critical role.
"This is a bridge to that recovery," he said.
LOCAL BUSINESSES
J. David Jameson, president and CEO of the Greater Aiken Chamber of Commerce, joked that when the stimulus money came, he would don a Paul Revere outfit, borrow a horse and ride through Aiken shouting, "The recession is over! The recession is over!"
While he has yet to come through on his colonial contract, Jameson does see the money having direct impact in the very near future.
"I do think that this is a turning point for this community. Every business won't be affected in the same way, but lots of businesses will be affected," he said.
Jameson said that although Aiken has not been hammered as brutally as some other parts of the country, the infusion will certainly be beneficial.
"I think that this will be a great cushion to our current economic condition. With a new $1.6 billion being spent here in the next 30 months, some good percentage of it will stick within our community," he said.
He said that whether the jobs are filled with people currently in Aiken or people moving here, it will have clearly measurable impact.
"It will have impact on this community because it will create new spending," he said.
Jameson cautioned that the optimism should not be unbridled and that there still needed to be an eye toward fiscal responsibility with business owners willing to take risks, albeit calculated ones.
"I don't think they can anticipate that this is the start of something that will be here for ever and ever, because that would be incorrect. But it may be that the national economy catches up with where our economy is going to be," he said.
THE REAL ESTATE MARKET
Kristyne Blake, association executive for the Aiken Board of Realtors, is encouraged by the news of the stimulus funds. Ideally, she said, many of the new jobs would go to people already in Aiken, which could lead to home upgrades. New, long-term positions filled by people moving into the area would also benefit the housing market, while short-term contract labor could benefit rental properties. Blake said the Aiken market has fared better than most since the downturn, with home prices dropping a mere 3.9 percent, compared to the 10 percent drop statewide.
"Aiken did see an increase during the housing boom, of course, but our housing prices have not plummeted," she said.
She also hoped the news would lead more first-time buyers to start shopping, in particular in light of the new $8,000 federal tax credit available for first time buyers.
"That's a wonderful program," she said.
Blake added that the sense of recovery has been building of late, and this latest news only helps.
"In the last couple of months, there is a sense of optimism that it is getting better," she said.
INDUSTRIAL IMPACT
Fred Humes, director for the Aiken Edgefield Economic Development Partnership, said the money is a boon for the area. The 30-month stimulus programs should end at a time when the economy is more solvent.
"I think it may be provide an opportunity for a bridge, if you will, to fill a gap between now and 2011 when the economy should be fairly strong and these companies will be hiring again in the private sector," he said.
Another possibility Humes sees is that some of the 3,000 potential job could be filled by retirees who have recently left the Site, bringing set skills as well as familiarity with the safety culture needed at SRS.
While Humes said he is thrilled with the funding, he said he would like to some funds being allocated to the Savannah River National Laboratory, which did not get tapped for any of the stimulus money.
He added that the stimulus funding did not reduce the pressure to continue to bring new industry to the area.
"The pressure's always there. So much of what we do, we get in front of people and companies years in advance many times," he said.
EMPLOYMENT OPPORTUNITIES
Paivi Nettamo, spokesperson for site contractor SRNS, said resumes have already begun coming in for potential jobs. While as many as 3,000 jobs could be created, Nettamo stressed that not all jobs were being filled on day one, but rather throughout the 30-month duration of the projects. That said, potential job seekers should submit resumes at the www.recovery.srs.gov by clicking on the "employment" tab.
"The sooner we get resumes, the better we can plan," she said.
Potential jobs include construction, administrative, clerical, engineering and project controls.
"There's a wide range of jobs," she said.
While bringing quality workers is key, Nettamo said maintaining the safety culture is equally important.
"We hope to start very soon. But we want to make sure we don't rush through this."
TRAFFIC
Aiken County Councilman Gary Bunker said the critical issue is where, exactly, the employees to fill the additional 3,000 jobs will come from.
"The impact wouldn't be great if they are people who are currently employed in this area or are retirees who get a new contract. SRS has lost thousands of jobs in the past few years and the addition of 3,000 will bring it into the low teens. It's not like SRS will grow into something we haven't seen before."
City of Aiken Administrator Roger LeDuc agrees.
"The impact won't be very much. In the mid-1990s, there were 25,000 workers. The addition of 3,000 is still far less than what we had then. A large portion of the new workers will be in Aiken so there is that already on the road system."
SCHOOL DISTRICT
If there are families that move into the area for jobs created by the stimulus funds targeted at SRS, it could have some impact on the Aiken County School District, said School Board attorney Bill Burkhalter.
"You would have more student population, but also more state revenue for an offsetting point of return," he said. "It depends on how many people it would bring in a short period of time."
Any new students likely would be spread over a number of schools, Burkhalter said. However, the North Augusta and Aiken areas have experienced increases in population for several years. As a result, they've seen the greatest need for facility expansion over the past decade or so, Burkhalter said, as noted in a facilities report presented to the School Board by a Columbia consulting firm in March 2008.
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Comment Title:
It would be nice to see SRNL get some of this money so they could undertake much needed upgrades and improvements, and poise the lab for future growth. This would be a good investment with more than short term benefit to the area.
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Posted by: On: Thursday, April 02, 2009 9:54 AM
Comment Title: Not so fast.
It is a well in good to get excited and giddy about this influx of money coming into the area, and I chuckled regarding the comment about the clown getting dressed up a Paul Revere. This folks is the time for some serious and thoughtful planning for the future. This is exactly what this Economic Recovery Plan is supposed to do, "inject money into the area's economy to jump start us out of this recession". The critical word or action is "PLAN". Plan to grow this area for future years and to get good solid business in hear for the long term.
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