Forbes: Las Vegas economy ripe for a rebound

Tuesday, May 5, 2009 | 1:14 p.m.

Sun business and economy coverage

Finally -- a "worst of" list that Las Vegas isn't topping.

A recent study by Forbes magazine indicates the suffering Las Vegas economy is likely to rebound, as are the economies of other Sun Belt cities, such as Phoenix and cities in Florida.

Forbes analyzed Bureau of Labor Statistics data on 336 metropolitan regions looking at job growth in the past year and how employment figures have changed since 1996. The data were analyzed by Forbes and researchers at Pepperdine University as part of the magazine's annual survey of the best places to do business.

The survey ranked the 10 big, medium and small cities expected to see the lowest rate of job growth. Las Vegas didn't appear on the lists, although the Reno-Sparks area, which the survey did indicate was likely to rebound, ranked as the No. 8 worst medium-sized city for jobs this year.

Las Vegas and Reno, whose economies were known earlier this decade for being among the most robust in the country, are likely to rebound from current woes based on past successes, the survey said. Population, job and real estate growth will bounce back slowly, the report said, because the reasons people move to Nevada, Arizona and Florida haven't changed: warm weather, low taxes and pro-business governments.

Forbes advised that Nevada and Florida should shift from their reliance on tourism and instead focus on medical services, business services and light manufacturing.

While the report painted a bright future for cities in the Sun Belt, those living in the nation's industrial heartland, in cities like Detroit and Cleveland, aren't likely to fare so well, the magazine said. In its study, Ohio and Michigan claimed 11 of the 16 worst metro areas for job growth.

High taxes and problems plaguing the automobile industry were cited in those cities' low rankings.

Discussion: 12 comments so far…

By judgesmales

5/5/09 at 2:44 p.m.

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This is the flimsiest premise for a story I've ever seen.
By 2zero

5/5/09 at 2:51 p.m.

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Warm weather....

...water?
By LasVegas2009

5/5/09 at 3:12 p.m.

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Ready and willing does not mean it will happen.
By revtomperl

5/5/09 at 3:16 p.m.

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Let the good times roll!! Most things eventually change course - Why not Vegas!
By Frankm507

5/5/09 at 3:29 p.m.

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I couldn't agree with judgesmales more. The Vegas market will bounce back because the weather is warm? What? In Forbes no less? The study also recommends Nevada get away from Tourism and into medical, light manufacturing? That is a total and i mean total ignorant statement to make! Oh ok, just tear down the economic infrastructure of the state that is literally 100% based on tourism and gaming. Maybe they can convert City Center into a big medical research building.
By Cyrus992

5/5/09 at 3:30 p.m.

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Yes! Please let it rebound!!! Let Vegas grow crazy again and this time THE RIGHT WAY!!!

NO MORE SPRAWL!!! NO MORE SUBURBAN SPRAWL!!! HOPEFULLY PEOPLE IN THE VALLEY WILL ACCEPT MY NEW URBANISM POLICIES!!!!
By Frankm507

5/5/09 at 3:48 p.m.

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What about the editors of the LV Sun? Aren't they reviewing the articles for accuracy before publishing? I don't want to sound like a doom n' gloomer, but don't give people these high hopes, founded on nothing! Where are the hard questions before publishing?
By LasVegas2009

5/5/09 at 3:52 p.m.

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Horsesh!t.
By Patrick_R_Gibbons

5/5/09 at 8:24 p.m.

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At least not the summer weather but the low taxes is always a draw. Nevada is a major draw for international capital, since it is a low tax state. Capital is what helps us build wealth from new buildings to labor saving devices that increase labor productivity therby increasing wages.

Nevada needs more capital to rebound and that means NO NEW TAXES. In fact, rather than increasing the MBT Nevada needs to kill the MBT to give companies an immediate infusion of capital, allowing them to rebound, expand, create jobs, and start raising wages again.

Nevada's legislature is doing everything wrong. Note: an article in Forbes recently also said that Nevada had the fastest growing government budget since 2000 <--that isn't good for business.
By Linda_in_Vegas

5/6/09 at 11:20 a.m.

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As long as the banks have a death grip on their purse strings I can't see things turning around.

People will continue to lose their homes and jobs.. businesses will continue to close. It's one big vicious circle...
By formervegas76

5/7/09 at 4:06 a.m.

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had a friend just get back from a.c. and said place had about half the normal customers. just not that many gambling $'s out there. cheaper rooms or an extra crab leg on buffet is not the answer, better play at slots would help. vegas was built on gambling and good gambling for customers will bring back the base and add new customers.
By rusty57

5/7/09 at 1:09 p.m.

Suggest removal

The high cost of going 'green' will preclude any rebound.