3rd Quarter 2018 Hotline
by Joe A. Hollingsworth, Jr.
Well, officially, we are in the second longest economic expansion ever! And, as I said before, there is an awful lot of naysayers, and they cannot help but talk about it constantly. However, they are wrong!
The tax cut that Congress passed has motivated businesses of all sizes to reassess the opportunity of using the tax savings for capital expenditures that will dramatically increase productivity. This is happening from sandwich shops to major defense firms. CFOs are actively using the tax savings to dramatically increase productivity and profits. This is playing out in company valuations, share prices, capital expenditures, etc., thus benefitting everyone all the way down to the factory floor. Daily, we talk to management of any of the 124 companies that we lease to, and it seems like that is their opening line. They are excited about what they can achieve.
Onto the statistics…Last month, the Bureau of Economic Analysis revised its assessment for the 1st Quarter of 2018; the BEA now says that the GDP grew 2% annualized, down from the previous figure of 2.2%. A more accurate measure averages factors in statistics on incomes which shows growth at 2.80%. The difference between this is the BEA does a separate analysis by adding up all the different sources of wages, profits, and various forms of income. BEA calls this Gross Domestic Income. Using those numbers, it is closer to 3.7% annualized. Generally, forward-thinking economists average these two together, thus the 2.80%. This shows the GDP is accelerating for 1st quarter, and 2nd quarter 2018 should be north of 4.5% using the same average.
Okay, maybe you are still a naysayer……A few things that could happen on the upside such as the NATO Alliance fully funding their part of the military, North Korea continuing to calm down, and the WTO making China play by the rules - all of which will indirectly affect the stability of the global economy, that will result in better support for the US growth. But, here are a couple of big surprises that we predict are coming October of this year. These will totally turn the midterms toward conservatives and also assure the re-election of conservatives for the presidential cycle: 1) The NAFTA surprise! – a greatly improved NAFTA agreement that gives blue collar and union voters a direct impact and reason to support conservatives; and, 2) President Trump through an Executive Order will invoke a 2002 Supreme Court ruling that sets the stage for indexing capital gains for inflation like most IRS rates are. This in effect would lower taxation on capital gains which always provides significant economic growth.
Based on all the above, this will be by far the longest expansion in American history. Internally, our company is preparing for the ride! Therefore, industrial builders, build baby build!
SouthPoint Industrial Park in Mocksville Continues to Expand
September 18, 2018
Building Number Ten is underway in the SouthPoint Park in Davie County, NC
Mocksville, NC (September 18, 2018) - Less than a year from a 75+ acre expansion in the SouthPoint Business Park, North Carolina; The Hollingsworth Companies are starting the second facility in a four building expansion in their park. The Hollingsworth Companies have been a long time supporter of the Mocksville community with the introduction of the areas first industrial park in 1997. “I would like to thank the community for being willing to invest time, effort, and money into being a true partner in making this park successful and I want to thank the entire county for their willingness to help us develop their area,” Hollingsworth said.
This tenth building, a 253,180 square foot industrial building, will be a similar designed, steel and masonry facility, with 30’ clear height, 60 foot by 60 foot column spacing and high intensity LED lighting. This facility design has been very successful for The Hollingsworth Companies with four industrial parks and over 125 buildings across the Southeastern Manufacturing corridor located from Virginia to Mississippi. From their beginnings as a local development company in Clinton, TN, The Hollingsworth portfolio now includes 18 million square feet of property leased to companies that range from manufacturing to distribution and fortune 100 companies to high growth, early stage companies less than two years old.
The ninth building in the park, a 108,960 SF facility built on spec. is currently available for a long-term lease by a light manufacturing and/or distribution company. Two additional buildings are planned in the park, a 152,160 SF facility that can be expanded to 238,590 SF and a 130,344 SF facility that can be expanded to 259,944. Both are expected to be constructed in 2019.
"Mocksville could not have asked for a better business partner than the Hollingsworth Companies. It has been a pleasure working with such a professional organization that has helped bring so many employers to our town since 1997. With their new buildings coming on line in the near future, Mocksville will remain at the forefront of economic development in this booming economy" stated Will Marklin, Mayor, Mocksville, NC.
Terry Bralley, President of the Davie County Economic Development Commission added “Mocksville-Davie County has been the envy of rural communities in North Carolina for 20 years. Our community has developed the perfect public-private partnership to support an industrial park with speculative buildings bringing 100’s of jobs and new investment to our community.
Hollingsworth believed in our community when others did not. Without industrial buildings in today’s fast paced environment, communities do not have the opportunity to grow future jobs.
The partnership with Hollingsworth, the largest non urban industrial real estate developer and construction firm in the southeast United States continues to creates an incredible winning story for our community, of which we are most grateful.”
The SouthPoint Industrial park is located adjacent to the I-40 between the I-85 and I-77. This location is ideally suited for manufacturing and distribution companies that support the Charlotte, Winston Salem, and Greensboro MSA’s. The Charlotte MSA has seen strong growth with defense-related industries with four of the nation's top ten defense contractors locating facilities in the area as well as a strong market for distribution companies located along the I-85 corridor. Greensboro has well established manufacturers in chemicals (pharmaceuticals), transportation equipment, machinery, and fabricated metals. While the Winston Salem area sees continued expansion in Apparel, Aerospace, and Construction Equipment manufacturing.
About The Hollingsworth Companies
The Hollingsworth Companies are the largest non-urban Industrial Real Estate developer and construction firm in the southeastern United States with 125 tenants, eighteen million square feet of industrial space, spread over 15 states. The Hollingsworth Companies has facilities located in North Carolina, Alabama, Georgia, Mississippi, South Carolina, Tennessee, and Virginia. For more information about The Hollingsworth Companies, contact, Tom Mann, Senior Vice President of Industrial Real Estate, at 865.457.3701, firstname.lastname@example.org