Tulsa Economy

[swake]

Must be Rovi.  Where I work for now, we have a bunch of former Rovi employees.  I can't seem to get away from that.  My last employer had a bunch too.

Pennwell?

[cannon_fodder]

I think the local economy is doing great in the face of oil prices and the contraction of state services and funding. In the past a collapse like we have seen in oil prices would have been devastating. It hasn't been.

This.

From what I have read in economic reports, Tulsa has weathered this oil bust better than any previous.

Imagine where we would be with competent state governance?

[Hoss]

I'm with you Conan, but as a whole/on average, whatever you want to call it Oklahoma (not just Tulsa) is in a bit of a rut compared to the past. I for one am seeing in my workplace as contracting work is drying up at the moment, especially in parts of the country that are heavily impacted by the energy sector. It's always a lagging indicator, but when general contractors start struggling it's usually a sign. And I am seeing that in spades at the moment, and mostly in states like Oklahoma, Texas, New Mexico, and Louisiana.

The company that I work for currently at one time was HEAVILY divested in the Oil/Gas sector.  Actually we still are, but we also had the foresight to know that we needed to start getting into other vertical markets.  Public safety, the dentistry market, and renewable energy (Hydro, Solar, Wind and the like).  So while we have hurt a little this year, we still made a profit.  Not the profit the suits wanted, but a profit nonetheless.

Oil and Gas companies would be wise to start being more expansive in their business.  Diversification.  For whatever reason, it seems most O&G companies resist that.  It will be to their demise in the future.

[erfalf]

The company that I work for currently at one time was HEAVILY divested in the Oil/Gas sector.  Actually we still are, but we also had the foresight to know that we needed to start getting into other vertical markets.  Public safety, the dentistry market, and renewable energy (Hydro, Solar, Wind and the like).  So while we have hurt a little this year, we still made a profit.  Not the profit the suits wanted, but a profit nonetheless.

Oil and Gas companies would be wise to start being more expansive in their business.  Diversification.  For whatever reason, it seems most O&G companies resist that.  It will be to their demise in the future.

My company serves basically all markets, at a retail level. Actually much less exposed to energy directly mostly due to lack of products in that field (not because we don't want to), that and heavy ag. It's the service industries that feed off the energy industry that we are seeing the effects. In my opinion only, I think the market in Oklahoma is far softer than perception. I think it is doing better than past slumps, but still soft none the less. It's not a knock on the state, just a statement of reality. Who could argue that it hasn't been better than it is now. Of course it has. Because we are diversified we are not seeing any revenue growth of our own, but we're not stepping back either, just holding steady, where we are generally experiencing pretty consistent growth. My company grows slow, but rarely decline over it's 60+ years.

[Vision 2025]

Monitoring sales tax collections, overall (County-wide) we are actually up just a bit and that there was not really a fall but more of a slowing of to elimination of growth.  Unfortunately, individually the City of Tulsa has seen a decline but not near as large as I had expected.  I attribute the burbs growth to more and better local shopping opportunities and still strong housing construction which is often school district related.

Your mileage may differ.

[swake]

Monitoring sales tax collections, overall (County-wide) we are actually up just a bit and that there was not really a fall but more of a slowing of to elimination of growth.  Unfortunately, individually the City of Tulsa has seen a decline but not near as large as I had expected.  I attribute the burbs growth to more and better local shopping opportunities and still strong housing construction which is often school district related.

Your mileage may differ.

Sales tax problems are only partially related to the local economy anyway. Cities in Oklahoma are going to suffer from losses in sales taxes to internet sales until we either tax internet sales or change the tax structure that supports cities.

[Vision 2025]

Sales tax problems are only partially related to the local economy anyway. Cities in Oklahoma are going to suffer from losses in sales taxes to internet sales until we either tax internet sales or change the tax structure that supports cities.

Absolutely agree!

[Conan71]

Sales tax problems are only partially related to the local economy anyway. Cities in Oklahoma are going to suffer from losses in sales taxes to internet sales until we either tax internet sales or change the tax structure that supports cities.

True, but I do believe e-commerce has been around long enough that there's a predictable pattern on sales tax revenues in spite of internet sales.  In other words, it's not like droves of people are just now discovering Amazon or eBay.

[swake]

True, but I do believe e-commerce has been around long enough that there's a predictable pattern on sales tax revenues in spite of internet sales.  In other words, it's not like droves of people are just now discovering Amazon or eBay.

No, but companies like Amazon continue to expand their offerings. For example Amazon now has a "box" option, fill a pretty large box with household and grocery items that they will ship for a flat $5.

[davideinstein]

Depending on your paradigm, you can be a product of the economy or a victim of it.

If you believe it sucks, you are probably missing out on areas where you can improve in your corner of it.  I had lunch with a downtown restaurant owner yesterday and we chatted for well over an hour.  He justified that the local economy is being tough on his business by talking to others in that part of downtown that they were having a rough summer also.  He has outdoor seating, which understandably is underutilized when it is very hot, but what else is he doing to succeed other than to show up every day and count dwindling receipts?  How up to date is the menu with hot summer days?  What are you doing to draw people in through social media with specials?  What are you doing to market to people coming downtown for special events, concerts, or gallery showings?

One of the ten leading questions I would use when interviewing prospective reps when I worked in the chemical business was "How do you view the local economy?"Those who answered negatively usually had the longest list of previous employers.  I generally made the decision to continue with or to terminate an interview based on the answer to that question.  If I hired them and after 90 days they had done nothing, their excuse was always going to be the lousy local economy.  That wouldn't be their fault, that would be mine for hiring someone with such a pathetic view of their surroundings.

If someone said: "I hear from others things are tough, but I don't buy it." I'd give that guy a chance.

In other words, you can let the economy happen to you or you can chart your own destiny.

I've worked on commission or ran my own business my entire adult life.  I have no choice but to make a living every day.  I have a certain standard of life I'm accustomed to, that makes me work that much harder.

Sometimes you just weather downtrends in the economy in regard to sales growth or negative numbers. Give good service and don't change a thing.

[davideinstein]

Monitoring sales tax collections, overall (County-wide) we are actually up just a bit and that there was not really a fall but more of a slowing of to elimination of growth.  Unfortunately, individually the City of Tulsa has seen a decline but not near as large as I had expected.  I attribute the burbs growth to more and better local shopping opportunities and still strong housing construction which is often school district related.

Your mileage may differ.

Percentage decrease in the city?

[heironymouspasparagus]

Sales tax problems are only partially related to the local economy anyway. Cities in Oklahoma are going to suffer from losses in sales taxes to internet sales until we either tax internet sales or change the tax structure that supports cities.

I go out of my way to avoid buying online - I want to keep business's here that we have.  But you know there had to be a 'but'...  I had to find a dryer part this morning and called about 8 or 9 brick and mortars.  2 didn't have it.  2 could get it in 2 days which is very good.  All of them charge $35 +/- $5.   Online, bought 2 for $25.  Got a spare.  Could not stay at home for that difference.  I would have gone to the store at lunch if they were anything under $25 each - convenience is worth double price - but at 35....no.

[TheArtist]

I really think that Tourism could be a much bigger player in Tulsa's economy.  I am glad to see all the Route 66 stuff going on and hope to see more. 

Course I am really hopeful that we can get some support for the Art Deco tourism portion.  Its getting frustrating that most of the influential people, political/financial seem to have absolutely no interest in support in that aspect.  And Tulsa is probably more well known for its Art Deco than even Route 66 stuff so I don't understand the lack of interest and support.

[Conan71]

Sometimes you just weather downtrends in the economy in regard to sales growth or negative numbers. Give good service and don't change a thing.

I'm somewhat ADHD so sitting still is never easy for me. 

In your business' case, I imagine you are somewhat limited in what you can and can't do promotionally.  I also suspect you have little flexibility in menu changes as a franchise.  But sandwiches are in style pretty much year round.  There's not anything much better than an Unwich on a summer day for a quick lunch.  A sandwich is just as good on a chilly winter day.  Maybe not quite as appropriate as stew, but you get my point.

An individual restaurant owner does have flexibility to change the menu or offer specials to match the seasons and a good restaurateur will do so.  Regardless if a business is a franchise or local, there's always room for a little hand-to-hand marketing to the local hotels and businesses to keep your brand in their conscience.  Not saying you don't do that but making a comment in general you can never over-promote a brand or business...unless your name is Donald Trump, but I digress.

[cannon_fodder]

I really think that Tourism could be a much bigger player in Tulsa's economy. 

I agree.

OKC has grabbed tourism with mid-level sporting events and regional conferences. Of course Bricktown, the Memorial, and a few other things make it "worth the trip."

Tulsa has done OK utilizing expo to grab the BMX, various horse shows, major gun shows, etc. Tulsa Tough has really brought in some people too. But we need to put together a few things to make us a regional draw/day trip destination. I can't help but shake my head at some lost opportunities - the Aquarium, the botanical gardens somewhere tourist friendly, etc.  But we have started to put it together with the ballpark and museums in the Brady, near the PAC, near the BOK, near...

IMHO, a City like Tulsa needs 3 or 4 destinations that someone in a family/group would be happy to do. My family can go to Bentonville and go biking, to Crystal Bridges, and find 2 or 3 other things worth checking out. I think Tulsa basically has that, we need to string them together better and sell it!