Study: Latino economic power increasing

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Annalyn Censky

The Arizona Republic

Amid concerns about a current economic slowdown, new Latino-owned businesses, as well as Latino homeownership and purchasing power, are growing at a faster rate than those of the general population, a new study out Wednesday reports.

The Hispanic population is expected to become the majority, surpassing the white population by 2030, according to U.S. Census Bureau data. Along with that population boom come significant increases in Latino-owned businesses, spending power and homeownership, according to "Datos 2007: Focus on Arizona's Hispanic Market."

Although the research dates mainly between 2000 and 2006, lead researcher Loui Olivas said the projections remain relevant.

Some Latino businesses are seeing a steep drop in sales as undocumented immigrants curtail their spending fearing layoffs from the pending employer-sanctions law.

"Just because spending by undocumented immigrants is down, that does not mean they've left the state," said Olivas, an assistant vice president at Arizona State University. "It just means they're refusing to buy at this time. How long that will last, it's difficult to say."

The annual report, released by the Salt River Project and the Arizona Hispanic Chamber of Commerce, looks at growth and economic trends in the Hispanic community. Because the information is based on U.S. Census Bureau birth and death numbers, not immigration figures, Olivas said the projections still apply to the legal Hispanic population.

He said he still expects the economic impact of the Hispanic community to grow at faster rates than that of the non-Hispanic community.

Hispanic purchasing power in Phoenix, the report says, nearly doubled from $3.6 billion in 2000 to $6.4 billion in 2006. Nationally, Hispanic purchasing power is expected to hit $1 trillion by 2011, a 457 percent increase since 1990. That's more than double the expected growth rate for whites, which is 175 percent.

Edmundo Hidalgo, chief operating officer for Chicanos Por La Causa, a community development non-profit, said the impact of the Hispanic community, and Hispanic teens in particular, will be massive.

"A tidal wave is coming. We need to adapt and adjust," he said.

Hispanics are the largest group in the U.S. teenage population, as 33 percent of Latinos are under age 18. With a median age of 27, Hispanics are also the youngest race in the U.S., nine years younger than the national median age of 36.

Olga Aros, president of Ora y Dia Management Group, said U.S. businesses will have to cater to the Hispanic market in order to sustain the economy.

"We'll continue to be a productive community, and the U.S. will have to deal with that," she said.

According to the Datos report, about 48 percent of Hispanics owned homes in 2006. Hispanic homeownership grew by 3 percent between 2000 and 2005. Among non-Hispanics, the homeownership rate actually decreased by 1 percent.

The number of Hispanic-owned businesses also grew three times faster than the national average between 1997 and 2002, and is expected to generate $358 billion in sales in 2007.

Hispanic women in particular paved the way in entrepreneurship, Olivas said, as the number of Latina-owned U.S. firms grew 64 percent between 1997 and 2004.

http://www.azcentral.com/business/articles...tos1115-ON.html

[Jasman0717 9]

I see that, especially here in Santa Ana.

[eric&gen 0]

More taco stands are out "OY" "OY" "OY".

[pedroh 21]

yea i saw that last year, hispanic buying power is growing so fast... so there will be a lot '2 para español' from a lot of companies who want a piece of that 'pastel'