Los Angeles – King of The West

Implications: It’s hard to believe that the formerly largest industrial city in the nation has fallen on hard times for jobs.  But apparently so be it as the last remaining king, the Garment industry, is about to topple.  Just yesterday the entertainment industry was king here too, but we know its influence has also been dispersed to other locations.  The article points to the average 75 degree days and tourism as the last economic king or back to the beginning of the economic wheel here.

Analysis: The real future here is also well mentioned.  Immigrants whether from Oklahoma or points further east, west, north or south have always fed this machine.  Forty languages or more are spoken across the city.  The first generation doesn’t bring much but raw energy in most cases, but they have an incredible urge to educate their children like immigrants everywhere do.  And the next generation has always created an enormous small business community just like other changing coastal communities.  
Therein lies the real treasure here, the ties to the home country and the international trade that allows the city to serve the rest of the U.S., primarily the western states  No way these activities are going to shift elsewhere in their entirety, since the huge port system is irreplaceable.  Even if Mexico’s Sea of Cortez port possibilities or the eastern ports eat into the market at the edges, the ports of Los Angeles and Long Beach will carry the day for bulk goods.  Granted, air facilities within the western states will cut into the markets for finished or high value goods, but the real commerce will be in Los Angeles and the general metro area.    The result for real estate interests will be sustained if cyclical growth.  Los Angles will suffer during the coming correction, but the results overall should be relatively steady profits.         .