April 12, 1972
Business sentiment seems to have stabilized on a moderately optimistic level. As one northern Alabama director put it, "The economy appears to be settling down after its transition from recession to recovery."
Construction activity remains near a boom level in Florida. Building permits in one county near Disney World are up about sevenfold from last year. Motel and hotel construction is strong in many areas of the state. A company that recently purchased property with 40 miles of waterfront on the North Florida Gulf Coast is reportedly planning a $20 million condominium project.
The boom in residential construction may be producing some temporary bottlenecks, but it is also stimulating the building of additional facilities for producing building supplies. Rock mines in central Florida that supply the cement industry are operating at capacity, yet they cannot nearly keep up with demand. Lumber companies are experiencing strong sales and two have recently announced expansions of mills. One of the two plants to be built in Georgia will produce doors and paneling, and the other will produce wallboard.
Plant announcements continue at a steady pace. In Panama City, Florida, construction is expected to begin this summer on a $50 million plant to produce steam-generating components. A $25 million expansion has been announced for a brewery in Jacksonville. Jacksonville is also expected to be the site of a huge operation to build offshore nuclear generators. Two warehouses and a food processing plant will be built in Jackson, Mississippi.
Shipyards are also experiencing improved business. A large order for barges was recently booked by a New Orleans yard, and the Jacksonville shipyard is planning an expansion.
Other scattered signs of strength include a substantial increase in the volume of telephone business in Alabama. In the first two months of this year, long distance telephone conversations have increased 11 per cent over the comparable period a year ago. Aluminum ingot production is gradually expanding in north Alabama.
The agricultural outlook is generally optimistic, and Florida's citrus industry is enjoying a record year.
Directors from slow-growth areas in Louisiana and Alabama are not optimistic about the outlook for their areas. Furthermore, Lockheed has announced another gradual layoff of 5,500 employees at its Marietta, Georgia plant.