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LOS ANGELES-It’s not so much life imitating art as much as politics reflecting, well, the real world. CBRE has listed 13 Trends for 2013, and though the report was fashioned before President Barack Obama hit the podium (and is based in totally apolitical research), many of the trends included in the list would also appear as talking points in the State of the Union address.
(This is the first of a two-part article. Tune in this afternoon for the 13 Trends for ’13.“)
These included manufacturing (“I ask this Congress to help create a network of 15 hubs and guarantee that the next revolution in manufacturing is Made in America.”) and energy (“As long as countries like China keep going all-in on clean energy, so must we.”)
In manufacturing, CBRE is claiming a renaissance, noting that, “While aggregate manufacturing output has not yet returned to its pre-recession peak level, the groundwork is being laid. With more efficient operations, companies will be able to increase output to meet demand while maintaining healthy margins. In the near term, this will not necessarily translate into more hiring, but increases in competitiveness in the global economy will help to generate more domestic production.”
On the energy front, even as the President urged more emphasis on the development of efficient fuel sources, the CBRE research indicates energy-intensive locales such as Dallas, Pittsburgh and Oklahoma City as ripe candidates for investor interest. Jobs, of course, were the theme, if there was one, of the State of the Union. And the President’s emphasis on energy and new manufacturing as a driver of employment dovetailed with the CBRE report and its postulating that the era of job growth through financial services might be over.
“With the exception of just a few markets,” the report said, “the financial services sector does not look like the major engine of economic growth it once was. It certainly seems possible that this era is coming to an end. New York City presents a great example of how changing industry patterns affect office demand at the submarket level: demand in Midtown South, dominated by technology firm activity, is outpacing the neighboring Midtown submarket, where demand for office space is more tied to financial and professional services firms.”
The replication of industry trends within the political agenda aside, the report, a work crafted by the economists in CBRE’s Econometric Advisors unit, lays out in detail 13 trends to watch in 2013. Stay tuned for the “13 in 13,” coming this afternoon on GlobeSt.com.