BUSINESS PULSE / JOHN BRENNAN : Earthquake Awakens Some Expectations

By now we’re all too familiar with the psychological and economic havoc wrought by January’s earthquake. So it’s nice to find the occasional piece of good news in the wake of the disaster. There’s just such a bright spot, unearthed by a Times Poll of Los Angeles County conducted the week after the big shaker.

The survey chronicled the physical and emotional losses suffered by a wide range of county residents, but the message wasn’t all bad. Amid mostly dismal findings, 10% of those responding to the poll said that because of the quake, they actually expected to see their family’s financial status improve in the months to come. Even among those living close to the quake’s epicenter, one out of 11 said they would be better off.

That 10% may seem like just a tiny sliver of the pie, but as a proportion of all adults in the county, it represents more than 600,000 people. That’s equivalent to the population of one of the smaller states.

Experts differ as to the quake’s long-term economic effects on the Los Angeles area, struggling as it is to emerge from a deep recession. Some see the event as a relatively isolated--even positive--event; others feel it will have a broader, negative impact.

Overall, the quake represents “a net depletion of wealth,” said Leslie Appleton-Young, vice president of research and economics at the California Assn. of Realtors. The Times Poll supports that assessment: 23% of those polled anticipated financial hardship--more than twice the percentage who expected to gain. Still, said Appleton-Young, “this is not going to derail the recovery. It may put it on hold for a quarter or two.”

And, for those roughly 600,000 people represented in the poll, one of America’s worst natural disasters already seems to have been a blessing in disguise.

Who are the quake beneficiaries?

The poll shows they tend to be younger, middle-income types from all parts of the county and of various racial and ethnic backgrounds.

“We’re busier than a bird dog in a brier patch,” said Greg Stevens of Long Beach, one of a number of poll respondents who agreed to discuss his financial position in a follow-up interview.

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Stevens, who repairs large commercial doors for Action Door Repair of Huntington Park, says he hasn’t had time to rest since the quake struck on Jan. 17. Among his customers are big grocery stores, dance clubs and hospitals, which rely for security on the massive, mechanically complex portals he knows how to fix.

Steve, a general contractor from North Hollywood who asked that his last name not be used, says he moved from Santa Barbara two years ago “for love.” The love didn’t work out, but the temblor has brought him more work than he can handle. He sensed that business was getting better even before the quake, but says he has bid on more jobs in the last month than in the previous six.

Another building tradesman, Greg Baxter of Kagel Canyon, says his customized contracting business was prospering before the quake but that the work generated by the disaster has been a godsend to many of his colleagues.

“Contracting in general was dying,” said Baxter. Now “there are an insane amount of people wanting prices for this and that.”

Paul Bloch of Van Nuys is a salesman at Levitz furniture in Glendale. The firm’s Northridge outlet was damaged, but Bloch said business at the Glendale store has been excellent as people begin replacing furniture.

“Three weeks after the quake, it started,” Bloch said. “The insurance money started coming in, and people are starting to put their lives back in order.”

According to Jack Kyser, chief economist of the Los Angeles County Economic Development Corp., the rebuilding effort could eventually generate 10,000 new construction jobs, along with nearly 20,000 positions in the engineering and furniture industries.

Do those benefiting feel at all guilty about post-quake success?

“In a way, yes,” said Melinda Teixeira, 20, of La Canada, whose stepfather’s janitorial business was bolstered by the quake.

“You can’t help but feel a little guilty,” added Steve, the contractor.

But Bloch disagreed. Asked if he felt sheepish, he said: “Not at all. It’s something that happened, and that’s the way it goes.”

He may have other reasons for not feeling any guilt. Despite financial good fortune, the poll found, the economic beneficiaries of the quake by no means escaped its wrath. Two in five of those economically better off still reported at least minor damage to their homes; about the same proportion said they suffered psychological trauma.

Said Bloch: “I may be doing a little bit better financially, but emotionally--that’s a different story.”