3rd Quarter 2007

Welcome!
To our new investors:
Architects Alaska
Chevron, Alaska
USKH, Inc.
Renewing investors:
3M
Alaska DigiTel, LLC
Alaska Distributors Co.
Alaska Native Business
& Resource Directory
Alaska Professional Sports, Inc.
Alaska Railroad Corporation
Alaska Sales & Service
Alaska Supply Chain
Integrators, LLC
Anchorage Community
Development Authority
Anchorage Marriott
Downtown
Anchorage Museum
at Rasmuson Center
ASCG Incorporated
Carlile Transportation
Systems, Inc.
CH2M HILL
City Electric, Inc.
Coffman Engineers, Inc.
Diamond Airport Parking
Dokoozian Construction
ExxonMobil
Financial Resources, Inc.
Flowers International LLC
Frampton & Opinsky, LLC
Gere Donovan Creative, Inc.
Holmes Weddle & Barcott PC
Immediate-Care, Inc.
KeyBank
Knik Arm Bridge
& Toll Authority
Linford of Alaska, Inc.
Diverse Partners Come Together
to Promote Parking in Downtown
AEDC STAFF
Bill Popp
President & CEO
Major changes are under way in downtown Anchorage. The heart of our city is getting an extreme makeover, complete with some large new additions and ways to move
around. From the Anchorage museum expansion to the new convention center to E
Street improvements and much more, the face of downtown is changing.
Erin Ealum
Business & Economic
Development Director
But every change is not without growing pains. Anchorage’s favorite place to shop,
dine, work and play is dealing with a public perception that construction has made
parking more difficult.
Heather Gould
Communications
Director
“Our member businesses say that the public thinks parking in downtown is being affected by the new construction,” says Chris Schutte, Policy & Communications Director for Anchorage Downtown Partnership, Ltd. (ADP) “There are plenty of places to
park in downtown, what we have to do is show people where to go.”
Hallie Bissett
Logistics &
International Trade
Director
ADP has begun working with Anchorage Parking and advertising agency LottsfeldtSmith to develop a long-term marketing program that will help promote the unique assets of downtown while educating the public about where to park when they come visit.
Kari Mahar
Investor Relations &
Events Coordinator
“The one-of-a-kind shops, restaurants and galleries are assets to downtown,” says
Schutte. “Parking should be viewed as an asset too, and marketed as such.”
Elizabeth Motley
Executive Assistant
“It’s not only about marketing the parking assets available now,” says Schutte. “It’s also
about laying the ground work for marketing the parking assets of the future.”
Lottsfeldt Smith
The Newsletter of
Anchorage Economic
Development
Corporation
WHAT’S INSIDE
page 1
TSAIA Changes & Growth
President’s Letter
Economic Snapshot
page 3
Busy Construction Season
The Arts Are Big Business
The central message
of the campaign is
simple: “there’s a spot
for you in downtown.”
As downtown continues to grow, so too will the parking options available to visitors.
One of the projects underway in downtown is the Atwood parking garage that will add
over 800 new parking spaces.
AEDCconnections
page 2
The parking marketing program will be a comprehensive public information effort to
promote parking in off-street parking facilities. Through a mix of direct media and
public relations, the parking marketing – or “parketing” as those involved in the project
like to call it – will showcase the unique amenities of downtown while also educating
visitors about the parking options to access those amenities.
The marketing project represents a public/private collaboration between ADP, the Municipality of Anchorage and Anchorage Parking; Anchorage Economic Development
Corporation; Alaska Center for Convention and Trade, LLC; the State of Alaska; the
U.S. General Services Administration; Anchorage Convention & Visitors Bureau; the
Alaska Center for the Performing Arts; and, many others.
3rd Quarter, 2007
page 4
Wind Energy Could
Stabilize Railbelt
Power Costs
page 5
AEDC is a private nonprofit
corporation (IRS code 501(c)(6)),
operating since 1987. It exists to
encourage growth and diversity in
the Anchorage economy, promote
a favorable business climate and
improve the standard of living of
Anchorage residents. Funding
sources for the corporation are
municipal and state grants, contracts, and private contributions.
For permission to reproduce any
part of this newsletter, please call
(907) 258-3700.
1,940 New Anchorage Jobs
Council of Supply Chain
Management Professionals
page 6
Venture Development
Opens Rental Car
Center at Airport
Mikunda, Cottrell
& Co., Inc.
Koonce Pfeffer Bettis
Incorporated Unveils
New Brand
Millennium Alaskan
Hotel Anchorage
page 7
Lynden International
MTA
Nye Frontier Toyota
Lexus of Alaska
Odom Corporation
Penco Properties
RE/MAX Properties, Inc.
RIM Architects
900 West Fifth Avenue, Suite 300
Anchorage, AK 99501
(907) 258-3700
www.aedcweb.com
Northern Air Cargo
Expands Fleet with 737s
page 8
Parking Marketing Program
Changes & Growth at Ted Stevens
Anchorage International Airport
Platinum Investor Spotlight
Airports are gateways for trade and commerce and are catalysts for economic growth. The Ted Stevens Anchorage International Airport (ANC) serves as the primary gateway to and from Asia. The
economic impact is 15,776 jobs or 1 in 9 jobs in Anchorage. That equates to about $453 million
in direct annual payroll and about $180 million in annual payroll for community jobs. With the
steady increase of cargo activity at this Airport more development and jobs are on the horizon to
continue diversifying our economic base.
In 2006, more than 5 million
passengers passed through
the Anchorage airport.
And on a weekly basis, an
average of 650 wide-body cargo flights land here, making ANC the number one airport in the U.S.
for landed weight of cargo aircraft and number three in the world for cargo throughput. ANC
was the recipient of the Balchen/Post award for excellence in the performance of airport snow and
ice control during the winter of 2006-2007. In addition, ANC was awarded the 2007 Air Cargo
Award of Excellence for the airport category of 1 million or more tons by Air Cargo World. This
award is a result of quantitative feedback from Anchorage’s cargo customer base of airlines and
airfreight forwarders who ship to or through Anchorage.
Renovation of the South Terminal at ANC is underway and will be ongoing for the next two years.
The goal is to ensure that travelers have a pleasant experience during this construction phase. Traffic patterns will change in front of the South Terminal with additional signage for passenger loading
and off-loading activities. The new Rental Car Center, scheduled to open mid-July, will add more
public parking in the Airport parking garage.
Amidst all this activity, a new Master Plan is in the works to update industry changes, growth and
operating priorities that have taken place since the 2002 Master Plan. ANC must be prepared for
future development which will include more frequencies and a greater proportion of larger aircraft;
expanded facilities and maximum utilization of runways and possibly a new one. The key driver of
growth at ANC is cargo, specifically in the Asia to North America market where annual international cargo aircraft operations are forecasted to increase 5.2% through 2027.
“The airport encourages all stakeholders to get involved with the Master Plan’s public process.
The future of the Ted Stevens Anchorage International Airport depends on your support for infrastructure improvements that will allow Alaska’s air transportation hub to remain efficient,
productive, safe and competitive,” said Mort Plumb, Airport Director.
More information about growth and changes at
ANC are available on the Airport’s website at
www.anchorageairport.com
Spenard Builders Supply
The Alaska Club, Inc.
The Wilson Agency, LLC
Udelhoven Oilfield
System Services, Inc.
8
Yukon Equipment
1
AEDC
ECONOMIC SNAPSHOT
Letter from the President
It’s now been four months since I assumed my new role as President and CEO of AEDC
and needless to say, it’s been a busy 120 days. I have met with as many AEDC board members and investors as possible to better understand where we stand as an organization today.
And I can tell you, AEDC is in great shape. There is a lot of enthusiasm for our mission
among both investors and the Board of Directors. And, with sincerest thanks to my predecessor Bob Poe and his team for the work they did during the past three years, AEDC has a
solid foundation from which to work. Their efforts have made this a very smooth transition
process.
Amid the change in leadership, there have also been several recent staff changes. Hallie
Bissett is now Logistics and International Trade Director. Erin Ealum has joined AEDC as
Business and Economic Development Director. Heather Gould is AEDC’s new Communications Director. Kari Mahar has filled the new position of Investor Relations and Events
Coordinator. And Elizabeth Motley continues her role as Executive Assistant.
With the new staff in place, AEDC is moving forward on several ongoing issues and initiatives. These include continuing efforts for enhancing and improving the logistics infrastructure in Anchorage and Alaska, addressing the growing workforce development challenges,
and seeking to develop increased investment in Alaska from our foreign trading partners that
strengthen and grow our local economy.
In addition to these and several other continuing efforts, AEDC will also focus on seeking
and identifying new opportunities that make sense for Anchorage, Southcentral and Alaska.
These include opportunities in the retail sector, pharmaceuticals manufacturing and distribution, cool chain logistics and opportunities within Anchorage’s two foreign trade zones,
to name a few.
One of the most intriguing opportunities is trade with China, which could impact all
levels of business in Anchorage. Anchorage’s direct logistics connection with China via
Ted Stevens Anchorage International Airport continues to grow and strengthen with each
passing month. The opportunities and challenges China offers Alaska’s businesses are many.
That is why AEDC engaged Mr. Ted Fishman, the respected author of China, Inc. to address
our investors at this year’s Investor Appreciation luncheon. His perspectives on the emergence of China as a global economic superpower and the possible impacts Alaska can expect
from China in the coming years are important as Anchorage continues to participate in the
growing global economy. AEDC will continue to seek new business links with China, and
in particular the Li Qiao Free Trade Zone in Beijing.
AEDC will continue to work for a strong, diversified economy for Anchorage, Southcentral
and Alaska. We have a strong momentum already in place. Anchorage’s economy continues to show healthy economic growth, as our mid-year update shows in detail. In January,
AEDC forecast the Anchorage economy would add 2,500 new jobs in 2007. As of May
31, employment is already up 1,940 jobs, an increase of 1.3 percent compared to the same
period in 2006. Growth in business and professional services, leisure and hospitality and the
health care sectors lead this growth. And this trend is
expected to continue throughout the summer.
It’s a pleasure to share these thoughts with you as
I begin my term as President and CEO of AEDC.
I look forward to the coming years as an exciting
time for the economic future of Anchorage
and Alaska.
Bill Popp
President and CEO,
AEDC
2
1st Quarter Commercial
Construction Permit Valuations
$86,277,825
2005
$89,787,026
4.63
$92,827,673
2006
2007
• Commercial construction valuations totaled $92.8 million for the 1st quarter of
2007, an increase of 3.4 percent from the
1st quarter of 2006 and an increase of 7.6
percent from the 1st quarter of 2005.
1st Quarter Residential
Construction Permit Valuations
$43,219,590
$30,906,796
2005
$32,473,583
2006
2007
• Residential construction valuations totaled
$32.5 million for the 1st quarter of 2007, an
increase of 5 percent from the 1st quarter
of 2006 and but still 25 percent below the
same period in 2005.
Municipality of Anchorage Population
277,627
2004
277,980
2005
282,813
2006
• The population of Anchorage was 282,813
in 2006, a 1.7 percent increase from 2005
and a 1.9 percent increase from 2004,
according to Alaska Department of Labor
and Workforce Development estimates.
1st Quarter TSAIA Transit Cargo
(millions of pounds)
971.9
2005
1,041.8
2006
1,053.7
2007
• In the 1st quarter of 2007, 1.05 billion
pounds of cargo moved through Ted
Stevens Anchorage International Airport,
a one percent increase from the 1st
quarter of 2006 and an 8.4 percent
increase from the 1st quarter of 2005.
1st Quarter TSAIA
Deplaning Passengers
453,931
446,529
2005
447,438
2006
Board of Directors
EX-OFFICIO MEMBERS
Northern Air Cargo Announces
the Arrival of “Triplets”
Legislators
Hollis French
Senator,
Alaska State Legislature
Fred Dyson
Senator,
Alaska State Legislature
On February 22, 2007, Northern Air Cargo (NAC) introduced the first of three Boeing 737-200
cargo aircraft, updating the current fleet of Boeing model 727-100. As of June 5, 2007, all three
aircraft are in operation with service from Anchorage to 16 rural Alaska hubs, giving the company
enough lift to serve all current markets and preparing it for future growth.
Craig Johnson
Representative,
Alaska State Legislature
Harry Crawford
Representative,
Alaska State Legislature
Purchased from Delta Airlines, NAC converted the planes from passenger configuration to state-ofthe-art cargo freighters. All three planes came off the Boeing assembly line consecutively and have
identical components.
Today’s customers demand better service and schedules, and these new aircraft will allow for greater
frequency and reliability. “The introduction of the B-737 to our current air cargo fleet represents
the beginning of a new era for Northern Air Cargo and our customers,” said Stephanie Holthaus,
NAC’s Vice President of Cargo. “I think our customers will be very pleased with the improvements
in service and schedule adherence this state-of-the-art aircraft offers.”
The twin-jet B-737 has earned an industry-wide reputation for being fuel efficient, easy to maintain,
and environmentally friendly. Shippers favor the dynamic cargo system that provides greater care and
flexibility for the goods shipped – especially the roller floor system, which offers speed and precision
in bringing freight in and out of the aircraft.
Northern Air Cargo will continue using its DC-6 fleet “the workhorses of Alaska” which provide
charters and flagstops to shorter, unimproved runways for project freight to mines, oil & gas fields,
construction and the military.
Along with NAC’s new fleet comes a new livery and corporate logo centered on the contemporary
and future vision of NAC for the next 50 years. Founded in 1956, as an air cargo provider supporting rural communities and camps around the State, Northern Air Cargo is Alaska’s largest and
longest-serving Alaskan air cargo carrier.
NAC takes great pride in its innovative freight service programs that highlight and promote the people and culture of Alaska. The air cargo carrier has supported Alaskan communities through disasters
and economic booms and will continue as an integral part of the State’s transportation lifeline.
Visit www.nac.aero for more information.
Municipality
Mayor Mark Begich
Municipality of Anchorage
Paul Bauer
Assembly Member,
Municipality of Anchorage
Dan Coffey
Assembly Member,
Municipality of Anchorage
Appointed by the Board
Chris Anderson
Deputy Director,
Credit & Business Development
AIDEA
Mike Brady
Vice President,
Ken Brady Construction Co. Inc.
Larry Cash
President,
RIM Architects
Julie Saupe
President & CEO,
Anchorage Convention
& Visitors Bureau
Carol Comeau
Superintendent,
Anchorage School District
Jim Gorski
Member,
Hughes, Bauman, Pfiffner,
Gorski & Seedorf, LLC
Mary K. Hughes
State Director,
Office of U.S. Senator
Lisa Murkowski
Ed Lamb
CEO & President,
Alaska Regional Hospital
Fran Ulmer
Chancellor,
University of Alaska, Anchorage
Douglas M. North
President,
Alaska Pacific University
2007
• Ted Stevens Anchorage International
Airport traffic included 453,931 deplaning
passengers during the 1st quarter of 2007,
an increase of 1.5 percent from the 1st
quarter of 2006 and an increase of 1.7 percent from the 1st quarter of 2005.
Economic data compiled by
Tennys Owens
President,
Artique, Ltd.
Bill Evans
Chair, Anchorage
Chamber of Commerce
Mort Plumb
Airport Director,
Ted Stevens Anchorage
International Airport
Kathy Porterfield
Managing Partner,
KPMG
7
AEDC
2006 Board of Directors
Voting Members
Sophie Minich, Chair
Sr. Vice President of Business,
Development, CIRI
Brian Nerland, Vice Chair
District President,
KeyBank National Association
Dennis Mitchell, Secretary/Treasurer
Regional Manager–Alaska,
Lynden International
Bill Behnke
Sr. VP Business Development
& Strategic Initiatives,
GCI
Connie Carter
Managing Director for Alaska
Operations, FedEx
Suzanne Cherot
Managing Partner,
Birch, Horton, Bittner & Cherot
Jeffrey Davis
VP/General Manager,
Premera Blue Cross
Blue Shield of Alaska
Joseph Everhart
Senior VP of Alaska Commercial Banking,
Wells Fargo Bank N.A.
Sheldon Fisher
Senior VP of Product, Sales & Marketing,
Alaska Communications Systems
Peter Grunwaldt
President, Premier Alaska Tours
Sandra Halliwill
Manager of Supply Chain Management,
BP Exploration (Alaska)
David Hamilton
Sr. VP Business & Commercial Lending,
Alaska USA Federal Credit Union
Stephanie Holthaus
Vice President of Cargo,
Northern Air Cargo
Bob Lacher
Manager of Federal Services &
Infrastructure, VECO Alaska, Inc.
Bruce Lamoureux
Hospital Administrator,
Providence Alaska Medical Center
Bill O’Leary
VP of Finance & CFO,
Alaska Railroad Corporation
Stewart Osgood
President, DOWL Engineers
John Palmatier
Executive Secretary/Treasurer,
Alaska Regional Council
of Carpenters
Michael Prozeralik
President,
Koonce Pfeffer Bettis, Inc.
Tim Schrage
Director of Operations,
Brown Jug Inc.
Chris Stephens
Associate Broker,
Bond, Stephens, & Johnson, Inc.
John D. Urbina
Managing Director–Investment Banking,
A.G. Edwards & Sons, Inc.
Mark Vasconi
VP of Federal Government Affairs,
AT & T Alascom
Pat Walsh
President & CEO,
Walsh Sheppard
Kevin Mitchell
VP Finance & Administration,
ConocoPhillips Alaska, Inc.
6
Lon Wilson
President,
The Wilson Agency, LLC
AEDC PLATINUM INVESTORS:
Venture Development Group Opens
Rental Car Center at Airport
AEDC member Venture Development Group is
excited to announce the opening of Anchorage’s
new Rental Car Center at the Ted Stevens
Anchorage International Airport.
Located on a five-acre site immediately east of
the airport, this new, modern, efficient and
environmentally friendly rental car system will
provide first class customer service for travelers to Anchorage. Design/builder Neeser
Construction, Inc. and kpb architects finished the final construction before the rental car
agencies opened to customers on July 18. The facility centralizes the airport-based rental
car companies.
Venture Development Group managed the development process from project concept to
fruition. The result is a savings in cost and time compared to other procurement processes. Venture’s third party involvement ensured the needs of its client – the on-airport
rental car companies – were met.
The 536,995 sq. ft. facility features 12 car washes, 16 fuel pumps, and a vacuuming center. The car washes are stacked on three floors – the first stacked car washes built in an
arctic or sub-arctic environment. Chemicals used in the car washes are environmentally
friendly, and 94 percent of the water is recycled. With these on-site facilities, turnaround
time to prepare a car for re-rental will decrease from 70 minutes to 15 minutes, eliminating 500,000 trips between the airport and former off-airport maintenance locations.
More information is available at www.anchorageairport.com or www.vdg-alaska.com.
Koonce Pfeffer Bettis Incorporated
Unveils New Brand
The architectural firm of Koonce Pfeffer Bettis
Incorporated unveiled its new brand last month.
The new look of kpb architects reflects the expanded
leadership and ownership group at the firm. The three
founding partners, Jeff Koonce, Mark Pfeffer
and Steve Bettis, have welcomed four additional
principals, two associates, and nine other
employees as stockholders in the 25- year-old
firm. The group has an established reputation
for innovative design responses unique to each
project and a strong team approach that
involves clients on a collaborative level.
Busy Construction Season
On Tap for Anchorage
By Mayor Mark Begich
You’ll hear the sounds of progress loud and often in Anchorage this
summer as we gear up for another busy construction season. The
Municipality of Anchorage has more than 50 separate projects - roads,
drainage, parks, trails and building construction - in some stage of
development.
BP Exploration
There also are the major projects such as the new Dena’ina Civic and
Convention Center and expansion of the Anchorage Museum of History and Art, along with dozens
of other projects around town and in your neighborhood.
This year’s efforts will focus on road, pedestrian safety and congestion relief projects throughout Anchorage. About 59 percent of the projects are funded with local bonds, federal funding is 26 percent
and state grant funding rounds it out at 15 percent.
The projects are expected to infuse some $73 million into the Anchorage economy this year alone and
create hundreds of jobs. Of the total, roads will make up about $57 million; parks/trails $9 million;
and buildings nearly $10 million.
General Communication, Inc.
Immediate-Care, Inc.
Our commitment is to continue to invest in our community and work to improve the quality of life
with better roads, parks and trails and infrastructure. This construction season will cause some disruption in the short term, but it’s a huge economic boost and all of these projects are part of the ongoing
effort to enhance and build our city for the next generation.
I’m also happy to report Anchorage received funding from the State Legislature for 98 percent of our
top priority road projects in this past session. We are all grateful to lawmakers who approved nearly
$85 million for a number of projects, such as the Dowling Road extension, upgrades to Old Seward
south of O’Malley, the Old Glenn Highway north of Eagle River, and 72nd Ave east of the Seward
Hwy. Funding was also provided for the Glenn Highway to Seward Highway Connection.
In an effort to keep you apprised of the projects this season, the municipality has launched our www.
anchorageroads.org website again this year. You can check it for the latest project details and detour
information.
Municipal Light & Power
Municipality of
Anchorage
You can also sign up for a weekly newsletter to be delivered directly to your inbox. I know some of the
projects will cause delays. I ask that you be patient as we improve and enhance our city.
Port of Anchorage
Thank you to the sponsors of the
2007 Investor Appreciation Luncheon
Providence Alaska
Medical Center
Primary Sponsors:
“While retaining the active involvement of the founding partners we
have proactively set the stage for the future of the firm with a broadened
base of ownership and a strong, dynamic and diversified leadership team,”
said Mark Pfeffer, Principal and past President.
Current President Mike Prozeralik added, “the solid foundation of our
founding partners provides the platform for us to continue to excel and
serve our clients and Alaska at the highest level”. kpb architects’ creativity has earned them both
local and national recognition for their work. Past Anchorage projects include the Downtown
Fire Station One, the BP Energy Center, and the Alutiiq Center. Other projects you will see
completed in the community over the next year are the TSAIA Rental Car Center, Aleutian
Pribilof Islands Association Building, and the new Atwood Parking Center.
Anchorage Water
& Wastewater Utility
Solid Waste Services
Additional Sponsors:
Alaska Regional Council of Carpenters
Alaska Regional Hospital
JL Properties
Lynden International
Northern Air Cargo
TOTE
Ted Stevens Anchorage
International Airport
Walsh • Sheppard
3
AEDC
Wind Energy Could Help Stabilize
Increasing Railbelt Power Costs
Fire Island wind farm would provide clean, renewable energy, predictable prices
Wind Energy Alaska, a 50-50-owned subsidiary of CIRI and enXco Development Corp., intends to build and operate a wind
farm on Fire Island that could eventually generate 100 megawatts, enough power for 35,000 average-sized homes.
The first phase of the project would generate 30 to 50 megawatts of clean, renewable energy and could be online in 2009. It is
dependent upon long-term power purchase agreements with the Railbelt utilities, which will require public funds to construct the
power lines and related infrastructure needed to transport electricity from the island to the Railbelt energy grid.
Wind power generation facilities typically cost $2 to $2.5 million per megawatt to construct. This can initially be more expensive
than traditional electric plants, but wind has zero fuel costs and offers customers predictable, nearly flat-priced electricity. Consequently, wind power is becoming increasingly cost effective as worldwide fossil fuel prices climb.
Wind energy is likely to become more attractive in Anchorage because local utilities currently depend upon natural gas for more
than 90% of power generation. Key utility gas-purchase agreements run out during the next three years, and Anchorage electricity
costs are expected to climb significantly as the utilities negotiate new gas-purchase contracts.
Fire Island was initially selected for this project by Chugach Electric Association from a list of 12 prospective sites that could potentially be developed to provide commercial quantities of electric power to key load centers on the Railbelt grid. After extensive investigation, Chugach determined that the site offered the best alternative for a wind farm and approached CIRI in late 1999 about
developing a project there. CIRI, which owns approximately
3,200 acres on Fire Island, worked with Chugach, and later with
Municipal Light & Power, Golden Valley Electric Association
and Homer Electric Association, to install wind measurement
equipment on the island and pursue permits and other feasibility-related activities supported in part by the Denali Commission.
The companies determined that Fire Island has adequate wind
resources and ample expansion acreage to support a major commercial wind facility. CIRI then agreed to continue working
closely with the Railbelt utilities and has teamed with enXco to
develop the Fire Island wind project, and possibly additional,
smaller wind projects in other areas of the state.
Fire Island is unique in that it could serve as an anchor project
for other wind plants in Alaska. For instance, the project could
be used as a site to train Alaskans for work in the wind industry.
Fire Island could also serve to support other large scale wind projects in the state with parts and technical assistance.
CIRI is one of the 12 Alaska-based
regional corporations and Southcentral Alaska’s largest private landowner. enXco Inc. is one of the largest
wind energy installation owners and
developers in the United States. It is
the nation’s largest third-party wind
farm operations and maintenance
provider, currently servicing more
than 3,600 turbines.
4
Council of Supply Chain
Management Professionals
1,940 New Anchorage Jobs So Far
AEDC job forecast on track
In January, AEDC forecast the Anchorage economy would add 2,500 new jobs in 2007.
A mid-year review of employment trends in the Anchorage economy indicates that this
number is on track and that Anchorage will experience its 19th consecutive year of employment growth.
Based on the first five months of the year, employment is up by 1,940 jobs, an increase of
1.3%, compared to the same time period in 2006. Sectors experiencing the largest increases in job growth in the first five months of 2007 include business and professional services
(460 new jobs), leisure and hospitality (360 new jobs) and health care (340 new jobs).
Increases in employment across many sectors
are expected to continue throughout the
employment
summer season.
151950
More than 65 members of the Alaska
chapter of the Council of Supply
Chain Management Professionals
(CSCMP) attended the first industry
roundtable in early May. The event
was led by Rob Lewin, Director of
Global Transportation for Flowserve.
Lewin spoke on the importance of
educating the local community on
supply chain issues and industry best
practices. The Anchorage Economic
Development Corporation hosted the
event.
149450
146850
As forecast, the construction sector is stable
with about 40 new jobs, a 0.5% increase.
An increase in commercial construction is
apparently being offset by a slight decline in
residential construction.
AEDC forecast 150 new government jobs in
2007. This number is on track with 200 new
government jobs through the first five months
of the year, primarily the result of increasing
state government employment. Federal
employment is falling in 2007, continuing a
three-year trend of decreasing employment.
Both School District employment and
Municipality of Anchorage employment are
expected to remain relatively stable in 2007.
144800
142600
140800
138200
2001
2002
2003
2004
2005
2006
2007
15700
leisure and hospitality
15400
15000
14500
14600
14700
14000
2001
2002
2003
2004
2005
2006
2007
The 300-job increase expected for Anchorage’s
health care
Trade sector is yet to materialize. Through the
first five months, employment in wholesale
and retail trade is down by 40 jobs. Some of
the growth expected this year should occur
during the summer; however, other growth is
delayed pending completion of some large
retail construction projects. A new Mountain
View mall is under construction and expected
to be completed by the end of 2007. Construction of a second $100 million-plus shopping
center, including an anchor tenant, Target, is also underway and expected to be completed
by the end of 2008. Construction of a new Super Wal-Mart is still in the planning stages
and completion is expected in 2009.
15000
14600
14300
13700
12900
2003
2004
2005
2006
2007
The 150 new air transportation jobs AEDC forecast for 2007 should also materialize this
summer (through May, employment in this sector was up by 20 jobs).
Oil industry employment in Anchorage was also expected to increase in 2007. Through
May, employment was up by about 80 jobs, an increase of about 4 percent. Oil industry
employment in Alaska overall has grown by 1,500 jobs over the past year and 2,600 jobs
over the past two years.
Employment increases are also occurring in a mix of sectors including transportation
(other than Air transportation), manufacturing, education, and other miscellaneous
services. These sectors combined added approximately 440 jobs to the Anchorage
economy in the first five months of 2007.
The roundtables will provide a platform for supply chain management
professionals to discuss best practices,
and will also help educate those
who are not in the supply chain industry to learn best practices in areas
like strategic product sourcing, disaster
planning, and cool chain
management.
Anchorage community members
established the seven-member Alaska
CSCMP Roundtable board by proxy.
Board members include: Dennis
Mitchell, Regional Manager of Lynden International (President), Sandra
Halliwill, Manager of Supply chain
Management BP Exploration (Alaska)
Inc. (Vice President), Hallie Bissett,
AEDC Logistics and International
Trade Director (Head of Programs),
Scott Hawkins, President Alaska
Supply Chain Integrators (Director),
Steve Silverstein, VP Alaska Railroad
(Director), Linda Close, Marketing
Director Ted Stevens Anchorage
International Airport (Director), and
Dr. Oliver Hedgepeth, Chair
University of Alaska Logistics Dept.
(Director).
This is a dynamic group of people who
have a lot to bring to the table, and the
programs being planned for 2007 are
sure to draw a large audience. “I think
the roundtable is a great opportunity
to share everybody’s institutional
knowledge on logistics and to bring
best practices on a National basis to
the State,” said Dennis Mitchell. The
next roundtable gathering is being
planned for late August, followed by
another meeting in late fall.
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