Pittsburgh Market Correction?

In the stock markets, when buyers push prices higher faster, there is often a correction that brings prices back down to levels that are attractive to new buyers so the market can go back up that much more. There are more than a few observers who see this as blatant manipulation of the markets but the reality nonetheless is that bull markets have a number of these 5% corrections in them. They aren’t bad things, until they turn into selloffs anyway.

Wednesday’s announcement by VerizonWireless that they were closing 2 Pittsburgh operations that would mean the loss of 1,000 jobs may have been a similar correction. Perhaps because we Pittsburghers haven’t been trained to think good things will happen here, the litany of good news about the region seemed like it was a bit much. We were long overdue for some good news but no region of the country is immune to ebbs and flows of growth. And when a city experiences a steady stream of successes, the leadership can sometimes get complacent or too aggressive. A dose of reality – not every business in any region is going to be on the way up – can be a very healthy thing. It’s not healthy for the people who have to find new jobs but when a business contracts it reminds us all that good times aren’t a certainty.

Regional confidence aside, the weather is making a quick start to 2014 almost impossible. Cranberry Twp. approved Sippel Development’s major mixed-use development at I-79 & Route 228 this week. The first of the projects to go forward will be the $45 million Pens practice facility/UPMC sports medicine complex, which PJ Dick should get rolling on in March. PJ Dick is also close to starting the $20 million Homewood Suites in the Strip District.

Hotel D2 has selected Franjo Construction to build its $5 million Cobblestone Hotel in Connellsville. The developer is still negotiating the contract for the Cobblestone in Millvale. Waukesha Pearce Industries selected the design and construction team for its new 38,000 q. ft. facility in Alta Vista Business Park on I-70. Desmone & Associates is the architect and General Industries will build it.

Advertisements

3 responses to “Pittsburgh Market Correction?

  1. A a. A aaa. A Aq

    Thanks,

    Brad Bridges RJ Bridges Corp

    Sent from my BlackBerry 10 smartphone on the Verizon Wireless 4G LTE network.

  2. What sets Pittsburgh apart from many other markets is we take one step forward and then a quick 3 steps back. This has been the case for many decades, what surprises the world as a whole is that we remain here fighting and struggling with the same issues. Having a difficult time believing this, look at the 911th how many fights , victories and set backs with this issue alone. Next look at Pittsburgh International ever since US Airways closed the hub it has been a constant battle with more negatives than positives. Remember New Stanton VW, Sony and to this day the fight goes on. We not only need a steady rise to barely stay afloat with other cities we deserve one. I am optimistic about Pittsburgh on many fronts but until the bleeding stops aka Verizon, US Airways Flight Operations Center, Highmark UPMC war , and others it is an uphill battle at best. What Pittsburgh needs is to become one with the Allegheny County, rebuild its existing urban riverfront towns and to attract international businesses. We have the resources, we need the salesman to sell the region. Just the Ugly Truth.

    • Agree with your final conclusion about selling the region – that will never change – but can’t say I agree with the main conclusion. I lived in a couple of the ‘hot’ cities in the South back in the 1980’s and both Dallas and Charlotte struggled with setbacks too. It’s the nature of economy. But the truth is more people are working in Pittsburgh now than in any other time in history. Every one of the job losses you cite have been replaced and then some. At the same time, if Google or Industrial Scientific or ExOne or whatever doesn’t manage their business well, their growth will stop and we’ll be reading about layoffs there too. To me the lesson learned is that regional leaders should stop being afraid of the ups and downs of businesses and make sure they don’t give in to corporate demands like USAirways made. Using conservative figures, Pittsburgh has recovered from the loss of at least 300,000 jobs when steel collapsed by promoting and investing in industries with future support (technology, healthcare research, now natural gas). But the likelihood is that at least one of these strong sectors of today will face severe challenges in the future. If the next 25 years brings the same kind of steady economic progress to Pittsburgh that the last 25 did, life will be awful good along the three rivers.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s