End of 2012 marks another sluggish year for the architect trade and my small practice was not immune to it. Outlook for the year 2013 includes a productive forecast fully funded by a healthy dose of optimism and encouraging news in the retail sector of increasing sales.
There are positive signs in the commercial market indicating that the economy is inching towards recovery, however small, gain and success stories of net social values are found not among the giant corporation once ruling the first decade of the new millennium, but among the small business entrepreneurialism. Small companies have found improving stability, alas with profitable margins by nurturing one small client relationship at-a-time approach and regardless of project type or size. Diversification and flexibility is the key factor.
Few retailers have navigated the difficult waters of our state of the economy with positive results and none more successfully than Apple, a $534 billion company who has turned electronic technology into products of necessity which defines our modern ways and lifestyle. A "tulip" of our modern era.
Its positive financial trickle down effect into our economy is not to be ignored but recognized and its business model of innovation shall serve as an inspiration to the rest of us and our future generations.
We find that the wireless communication industry such as Verizon and AT&T, riding the insatiable demand for cellular wireless devices, continue to expand a retail store network at a neighborhood grassroots level, one neighborhood, one town, one city, one county, one deal at a time.
Among them the small creative builders and professionals alike have found trading stability. A recent study from Royal Bank of Canada, reported that several retailers committed to delivering low cost approach of goods and services to communities across our nation, have flourished, during these tough economic times and are planning an even more aggressive growth for 2013.
Their incentive is driven by positive revenue, their rewards to lower cost of commercial real estate and desirable prime locations, options not available to them during the previous decade of high value real estate.
We applaud retailers such as Subway, Family Dollar, Five Guys, Dollar General, Pizza Hut, 7-Eleven, Jake's Way back Burgers, Chipotle and others like, for their business model based in price point.
It provides a true service and relief to our low and middle-class families who are confronted daily with difficult budget choices and an ever shrinking discretionary income.
A hereto small and lean professional practice finds stability and continuity of work.
As we march through our political process, our nation's current and future leaders must evaluate true cause and effect of our nation's sluggish economics, the pressure points.
In my opinion, several factors continue to be a drag to the economy and none is more significant than the cost of fuel energy, cost of goods which is outpacing inflation and the housing market. High cost of fuel impacts our individual lives basic necessities with high cost if goods and services, diluting the spending power of our once mighty power.
We redefined affordable housing in the first decade of the millennium as a standard two-bedroom condominium with an average national price tag of $250,000, clearly outpacing personal income growth and inflation. The market is undergoing corrections.
A housing rental market nearly tripled its rent rate and remains out of reach for many blue collars and middle class professionals alike, in premium market such as New York City.
It is a challenge however better left to our nation's economist and politicians with hopes that the new business model for our nation's future finds equilibrium and stability in the new work of growing and competing needs for limited natural resources.
Mario Cerrato is the principal at Cerrato Architects, Astoria, N.Y. Tags: