The Atlanta Journal-Constitution
Election’s impact could vary by sector
Businesses welcome end of campaign’s uncertainty.
Business people welcome the end of election season — but the vote’s effects could be different for different kinds of businesses.
After a costly and bruising election cycle that revealed deep divides over economic policy, business leaders can agree on one thing: They’re glad the election is over.
Many business leaders here openly rooted for Mitt Romney, but in the wake of his defeat some took heart that they’ll have a measure of predictability over the next four years.
For one, President Barack Obama’s re-election means some of his biggest legislative accomplishments, from the health care overhaul to new banking regulations, will likely stay in place rather than face rollback from GOP opponents.
More corporate deals could soon be announced as executives were waiting for the election to sort out before making key decisions about expansions and relocations.
Some sectors face new questions. Manufacturers worry that companies won’t invest in facilities in Georgia because they fear a possible tax hike. And small businesses aren’t certain of the impact of new health care rules on their bottom lines.
But the election could have a more defined impact in other industries. Obama could ramp up foreclosure relief programs, a potential boost for metro Atlanta’s still-struggling housing market. And White House policies could accelerate a move from coalfired plants to nuclear power, a shift that’s already under way in Georgia.
Here’s a sector-by-sector look at the election’s impact:
Residential and commercial property values are directly tied to the health of the economy and the growth of jobs, and Atlanta’s tepid economic growth since the recession has raised alarms among metro area politicians and corporate bigwigs.
Obama’s victory isn’t seen to have an immediate impact on metro Atlanta’s office market, which has shown signs of recovery after several miserable years. But Michael Bull, the founder of the Bull Realty commercial real estate firm, said a Romney win would have instilled more confidence among business leaders.
The upside to Obama’s victory, he said, is that Obama is less likely to cut govern- ment jobs, which could also have a spillover effect on private sector work. And he said businesses and investors can make decisions that they may have put off, knowing that key changes such as the health care overhaul will be enacted.
“I think commercial real estate will continue the gradual recovery during the Obama second term that we have seen the last few years,” he said. “The markets with strong job growth and high barriers to entry for new development will lead the way.”
For metro Atlanta housing, which still struggles with a high number of foreclosures and rock-bottom inventory levels, the impact of Obama’s re-election is equally unclear.
The president has said he would build on programs he’s already launched to provide foreclosure relief that expand refinancing and other options, and he also supports new legislation that could clear the way for more families to refinance their mortgages.
The jury, of course, is still out.
“I think the number one problem this country has with regards to business is a lack of confidence,” said David Marvin, president of Legacy Property Group, which has developed more than $250 million of deals in downtown Atlanta.
“The business community has been looking for change. I’m hopeful that how close the election was will send a message that we need to work together to get things done.”