October 13, 1971
Reports indicate a slight strengthening in the area's economy but, as one Alabama director put it, "On the whole, business confidence continues to hang in an uncertain area between pessimism and optimism, inclining toward the latter." The near-term outlook is viewed with cautious optimism, but there is some doubt about the ability to cope with major economic problems over the longer run. The employment outlook is mixed. Construction activity continues strong, but the rate of growth is expected to slow. Retail sales are strong.
In many areas, manufacturing activity and employment are reported steady, but there are some weaknesses. For example, a metal company in northwest Alabama has cut production by nearly 10 percent. In the Palm Beach area, 1,200 workers have been laid off as a result of RCA's decision to withdraw from the computer field. The spreading effects of the longshoremen's strike are being compounded by a strike affecting 6,100 workers at a Mississippi Coast shipyard. A textile company has closed three old plants in Georgia, resulting in the laying off of several hundred workers. However, another textile plant has reopened and hired 250 workers. Lockheed-Georgia has recalled 2,400 hourly employees that had been laid off for three weeks because of a strike at a wing manufacturer in Nashville.
Although the airline industry continues to encounter a rough year, a major airline company headquartered in Miami is avoiding layoffs. Various other devices are being used, including a reduction in employees through attrition. Additionally, employees are being encouraged to take leaves of absence without pay but with the privilege of guaranteed reservations on company planes. Other workers are rescheduling vacations for slack seasons, and surplus employees are being shifted within the company. Pilots are reportedly cooperating by agreeing to work extra hours at straight pay rather than at overtime rates.
Disney World unofficially opened on October 1. Crowds have averaged about 11,000 per day. Disney officials are reported to be pleased with the reception by visitors and, especially, with the smoothness of traffic flows and overall operation. A massive influx of visitors is anticipated after the official opening later this month. Construction in the vicinity of Disney World remains strong. Reportedly, the Disney site on the Atlantic Coast will not be developed in the near future.
Construction activity continues to buoy the region's economy. A 200-acre research and industrial park is being located northeast of Atlanta, and a $350-million generating plant will be built southwest of Atlanta. A motor inn and convention hall have been announced for Vicksburg. A combination apartment, commercial, and office complex is planned for Baton Rouge. A project of major proportions is reportedly under consideration for the West Palm Beach area. A large parcel of land in the Florida Panhandle has been purchased for residential development. New construction is reportedly increasing "dramatically" in the Jacksonville area. However, a Federal court order has halted the start of construction on the huge Tennessee-Tombigbee Waterway in Alabama. This project is receiving increasing opposition from conservationists.
Retail sales are generally reported strong, with auto sales leading the way. Large shopping malls have recently been opened in Atlanta and Pensacola.
Bountiful crops are being harvested throughout much of the District. The Georgia tobacco market closed with record receipts. The cotton crop is in good condition. The rice harvest in Louisiana was large, but shipment is now hampered by the dock strike. It is estimated that the sugar cane crop in Louisiana has been reduced by 11 to 15 percent by Hurricane Edith. There is considerable weakness reported in grain prices. High consumption of frozen orange juice has reduced the carry-over inventory to low levels. This should assure firm or rising prices in 1972. There is growing concern over massive fish kills in Escambia Bay and Santa Rosa Sound in northwest Florida. There have been 16 major kills this year, the worst one commencing on September 4 and still continuing. The kills are blamed on low oxygen content in the water caused by poor water quality.