Q&A: good news for Anchorage: economy is thriving, according to Anchorage Economic Development Corporation's Bill Popp.

• Author: Orr, Vanessa
• Position: ECONOMICS - Interview

While many people living in the Lower 48 are reeling from job losses and housing foreclosures, those who live in the Municipality of Anchorage are reaping the benefits of a growing economy. Bill Popp, president and CEO of the Anchorage Economic Development Corp. (AEDC), explains why.

ABM: What is the status of the Anchorage economy?

Popp: We're doing quite well; the economy is solid right now, and we're seeing signs of renewed growth at an accelerated rate. Approximately 1,100 new jobs were added to the Anchorage economy in 2007, marking Anchorage's 19th consecutive year of job growth. We expect to add another 1,000 jobs to the Anchorage economy in 2008. We're predicting growth in all categories except construction.

ABM: What does the job market look like?

Popp: Anecdotally, we've seen a large surge since spring in the demand for professional trades, such as architects, engineers, those who do permitting, accountants, and insurance and legal professionals. Most professional services companies with which we interact are in a significant growth mode, and it's rare if they are not trying to add employees.

ABM: This is pretty different than what's happening in the Lower 48.

Popp: Alaska is running counter to the rest of the country, and that's partly due to spikes in energy prices. If there's a silver lining to be found in the rising cost of energy, it's that Alaska benefits significantly from growth in the energy sector, which then pushes professional and other employment growth. Energy-related capital projects, such as new oil and natural gas exploration, development and renovation of older infrastructure all require new employment. With the announcement of Denali: The Alaska Gas Pipeline Project, between ConocoPhillips and BP, we saw even more unexpected job growth as a result of their establishing headquarters in Anchorage. That project will bring 150 new jobs to Anchorage, as well as $200 million or more in the next year in terms of contracts and direct expenditures on the project.

[ILLUSTRATION OMITTED]

ABM: How is real estate doing?

Popp: The real estate market is doing well. I know that from personal experience because I've been in the market myself for the last few months. Prices might have softened a bit since last fall, but I understand, anecdotally, that this may be flattening out. There is optimism that values will be increasing toward the end of 2008. Alaska's foreclosure rate is .35 percent, compared to the national average of...