LABJ Insider: Experts speak out on the economic future

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Stephanie Barbaran, Acting Editor of the Los Angeles Business Journal

JThe Los Angeles Business Journal hosted its first discussion of the new year on economic trends on February 2. The panel of regional experts shared their views on the biggest financial stocks affecting the current business climate and explored where the market is headed in 2022.

How the Covid-19 pandemic has affected all aspects of business was an overarching theme, and the panel provided insight on everything from employment to construction. Kicking off the discussion was an analysis of how the Great Resignation has changed the employment environment.

“A lot of people were stuck at home, and it gave them a lot of time for reflection and introspection,” said Peter Strotz, managing partner of downtown-based King & Spaulding. “It got people thinking maybe a change is appropriate now.”
Additionally, it has caused employers to rethink how they recruit and retain talent in order to attract people who have joined the Big Quit for different reasons. Those who left a job for better pay or a more inclusive office culture have different needs than those pursuing a whole new career, because the time finally seems right.

Brandon Grimmett, associate provost, professional development at Loyola Marymount University, explained that recent graduates focus on what they perceive to be “pandemic-proof” industries such as pharmaceuticals, e-commerce, construction, digital services and real estate.

“They want their future employer to take inclusion very seriously, so it’s easier to show up at their job as themselves,” he said. “Companies should consider sharing their policies on diversion, fairness and inclusivity with the young talent they recruit from the outset.”

And in this new environment, automation will also play a key role.
“The reality is that we should expect businesses to operate in a much lighter employment environment where they have to cut back on some services, automate other services, and use things like QR codes for menus and payments. rather than using people to deliver these things,” said Leo Feler, senior economist, UCLA Anderson School of Management. from those unnecessary tasks towards automation.They will have less human beings in the workforce, so they will be doing the tasks that are really essential and essential that only human beings can do.

However, dealing with the uncertainty associated with so many changes at once also gives way to building better operating models.
Kamran Paydar, and Senior Vice President of Los Angeles-based CBRE, addressed change in building and construction.

“Developers are actively looking for quality sites,” he said. “The big lesson for LA is that we are in a market where supply is limited. Politically, it is quite difficult to get a project approved and built, so it is difficult to bring the units to market. Over the next four or five years, LA will trend toward about 1% of existing inventory in terms of new unit deliveries. Rents have brought developers back to their financial partners, and even though construction costs have increased significantly, rents are catching up, so we should see this activity pick up again and be more on its historic trend.

In the meantime, the more companies and employees embrace change, the more it seems they will be able to achieve a new pace.

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