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Local growth may ward off recession
07:05 AM CDT on Tuesday, May 20, 2008
Despite national talk about recession, unemployment figures dipping to record lows in Denton and Denton County are indicative of the region’s buffer against major economic woes, a local economist says.
The numbers reflect the ongoing growth potential of the Dallas-Fort Worth area and, more specifically, Denton County, which has stifled the impact of the national recession, said Bernard Weinstein, director of the University of North Texas Economic Development and Research Center.
At least 700 jobs are earmarked for the Denton market when the following companies complete their construction:
United Copper — The copper wire manufacturer off U.S. Highway 380 East is expanding its size by 120,000 square feet and could add up to 260 employees.
Business Air and Jet Works — The companies, both at Denton Municipal Airport, are continuing to grow, building two additional hangars at the airport for fixed-base operators to use and for the finish-out of new jets.
Molecular Insight Pharmaceutical — This pharmaceutical company will be moving into an existing building. Once renovation has been completed, the company plans to have a total of 25 employees.
Fastenal — The building is under construction off Airport Road near the Denton Municipal Airport. Once completed, the light manufacturer and distributor of industrial fasteners will employ an estimated 90 employees.
Tetra Point Fuels — The ethanol fuel manufacturer, which is now leasing space at Granite Point, is finishing a construction project and will be adding an estimated 30 people to its payroll.
Aldi Foods — Long popular in the Midwest and beyond, the discount grocer is working on a 500,000-square-foot project just south of Airport Road. The company plans to use the large project as its distribution center and plans to open two stores in Denton.
Jostens Inc. — Those driving down Interstate 35E on a daily basis have likely seen the construction, which started recently. The expansion will mean the addition of an estimated 130 employees.
SOURCES: City of Denton Economic Development, Denton Chamber of Commerce.
“We’re looking at one of the fastest-growing sub regions of the fastest-growing major metropolitan area in the U.S.,” Weinstein said of the major northward growth that will come together in Denton.
While some fallout from the recession is expected, the long-term prospects are positive.
“We’re not completely immune from the national economic downturn. While we may see weakening, in the long term we’re probably better poised in Denton than any other part of the metroplex for future development,” Weinstein said. “There may be a hiccup or two but looking out 10 to 20 years, this area is going to continue to grow very rapidly.”
The city of Denton’s April unemployment rate of 3.2 percent matched a record low in December 2005, records show. In Denton County, a 3.6 percent unemployment rate for April matched a record low set in December 2006.
The statewide unemployment rate fell to 4.1 percent — the same record low rate seen in October 2007.
As Denton business men and women gather around the table at the Denton Chamber of Commerce, some talk arises of the ever-changing dynamics of membership from local businesses, says Chuck Carpenter, chamber president.
“There’s always a discussion of what do we need to do or is it the economy that’s hard on them,” he said. “The profile of an average chamber member is a minimum account based on five or fewer employees. Many of them are naturally very new. We tend to find a lot of these members, at least half, by the time the renewal comes up the next year, are no longer in business.”
Carpenter says he hasn’t seen a lot of distress signals among members, and the news of new distribution centers and a number of projects on the horizon leave the city in a good position.
“Do we hear any standing-on-the-ledge stories? No,” he said. “We could be in a whole lot worse places.”
The city is poised to see significant development in the coming years, officials say. Currently, construction continues on Fastenal, a regional distribution center expected to bring 90 jobs to the city.
Construction also is expected at some point on a second distribution center, Aldi Inc., a discount grocer with plans to open at least 25 locations in the Dallas-Fort Worth area. That center is expected to add 100 jobs when it opens in the next few years.
Work is expected to resume this summer on the almost $1 billion mixed-use development, Rayzor Ranch Marketplace and Town Center, officials have said. The development will include more than 100 retail shops, medical offices, a hotel, office space, residential and more.
Work on planning a major industrial center across the Interstate 35 and U.S. 380 intersection for Rayzor Ranch continues.
The estimated 1,200-acre tract known as Port 35 is expected to include a combination of warehouse distribution centers, high-tech, commercial and retail areas, and more.
“A lot of these mega-projects are kind of on hold,” Weinstein said, adding they are “looking at short-term demand and figuring it’s better to wait a year or two.”
DAWN COBB can be reached at 940-566-6879. Her e-mail address is dcobb@dentonrc.com
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