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Wednesday, May 7, 2008
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So how's business? Some in area prospering despite economic slump Senior Reporter Determining whether the current economy makes for tough sledding or thriving business conditions depends on which industry is represented.
Concerns for an economic downturn or the "R" word - recession - may be a self-fulfilling prophecy, said Janelle Riley, president of Syvantis Technologies of Baxter.
"The fear is people make decisions based upon what they read and hear and if they hear all the time things are really bad, they sometimes don't make good decisions," Riley said.
Within the business community, Riley said completely different decisions will be made by business owners who expect to have a really bad year than if they expect a good one. She pointed to a domino effect as a shop owner may order less inventory based on fears about the economy and then discourage shoppers as a result.
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Owner Reggie Clow, of Clow Stamping, stood by a new laser machine that can cut multiple pieces out of metal to maximize use of raw materials. Clow Stamping is one of a number of area businesses that are thriving in the current economy. Brainerd Dispatch/Steve Kohls
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"When I don't spend, guess what happens? Everybody around me suffers," Riley said. Just as with Wall Street, Riley said a lot of what happens in a recession is psychological. "When I speak with a lot of business owners they're saying, 'Honestly I don't want to talk too loud because my business is doing great. But I don't want to say anything because I hear it is supposed to be so bad.'"
Sheila Haverkamp, Brainerd Lakes Area Development Corp. executive director, said the organization is working with several projects, including Precision Waterjet for a new facility in the Jenkins Business Park and Lonesome Cottage Furniture's new 27,000 square-foot facility in the Pequot Lakes Business Park.
Tom Haglin, owner of Lindar Corp. in Baxter, reported 2007 was the company's best year ever, with a number of new products.
"Business continues to be strong for us," Haglin said.
The recently completed JOBZ reports about jobs and investments in 2007 for Minnesota Department of Employment and Economic Development originally anticipated the creation of 180 jobs and investment of $26,175,000 in Crow Wing County in 2007. As of Dec. 31, 2007, the actual JOBZ projects created 327 jobs and recorded $47,031,198 in investments. BLADC reported JOBZ projects also retained 332 jobs in the county.
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Greg Fuhrman (left) and Kris Peterzen worked on a machine at Clow Stamping. The manufacturer supplies parts for agriculture uses, recreational vehicles and exercise equipment among a diverse portfolio that also includes parts for school buses and elevators. Brainerd Dispatch/Steve Kohls
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Haverkamp said several industries have been adversely affected by recent economic conditions, but others continue to prosper.
Clow Stamping, Merrifield, is one of the area manufacturing companies that has been hiring. Since October, Clow Stamping hired and retained 67 employees. The company employs a total of 342 people. The new hires are primarily for second and third shifts. Owner Reggie Clow said the business is running about 30 percent ahead of last year.
"That's huge," Clow said. "We've never had that kind of growth. We've had other boom times but never a 30 percent. We forecast 8 or 9 percent and thought that might be too high. And business just took off and really hasn't let up."
Last year, business was up 6 percent compared to the previous year. Clow said reasons behind the manufacturing company's growth comes from the diverse customer base and the ability to perform with quality and on time.
"We don't supply product to the housing market or very little," Clow said. "We're not automotive. We supply product to agriculture, recreational vehicles. There is probably about 22 different markets we get in. Exercise equipment is really big. And they're booming, especially with the weak dollar, a lot of them are exporting like John Deere."
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Rod Romine, spot welder, worked a shift at Clow Stamping in Merrifield. Since October, Clow Stamping has hired and retained 67 employees. The manufacturer employs 342 people. Brainerd Dispatch/Steve Kohls
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Clow Stamping's growth is not without its challenges as the price of steel has gone up 100 percent, Clow said.
With the company's growth, Clow is considering an expansion, but said he'll wait to see what the economy does. The company has put more than $2 million in capital investment into the plant. After a couple of rough years, Clow said things started to turn around in the fall of 2006.
Always looking for new markets, Clow now makes parts for Blue Bird school buses. Other products include elevator plates and parts for gas pumps. Clow Manufacturing also has been active with other manufacturers and businesses in reaching out to high school students and Central Lakes College to let young people know there are good paying careers close to home in welding, machine trades, tool and die and laser operators. And the jobs extend beyond the manufacturing floor. In an office hub, Cincy Van Horn, customer service supervisor, said multi-tasking customer service operators keep vital communications running between customers and plant operations.
As for Syvantis, Riley said the company has more business now than ever. And Riley said her manufacturing clients are doing well and hiring. Computer One, their retail store, reported revenues were up 10 percent compared to this time last year.
"Maybe it just depends on who you are, but sometimes hearing the positive is a good thing," Riley said. "There are a lot of us who are hiring also but you don't hear about us. ... We would not hire if we did not have work for people to do. ... I'm just trying to say it's not all bad."
RENEE RICHARDSON may be reached at renee.richardson@brainerddispatch.com or 855-5852.
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