Bethany Tabb, Courier-Times Staff Writer
Brighter days lie ahead for the 2009 economy, local leaders say, but it might be months before business improves.
The year 2008 ended with many people wondering when what's now being called a recession would turn around. Most local officials agreed that though New Castle's current economy isn't good, this year it will take a turn for the better.
Jeana Davis, who will head New Castle's Economic Development Directorate next year, said Henry County's unemployment rate was more than 8 percent in November 2008. That's higher than both the state and national averages, she said.
She pointed to New Castle's dependence on the manufacturing industry, especially automotive manufacturing.
"We've got to figure out a way to get the Henry County unemployed folks back to work," she said.
New Castle Mayor Jim Small said a few industries will begin operations this year, including plastics company KVK U.S. Technologies and tire recycling company Scrap Tire Processing, Midwest. But the jobs they'll bring won't quite make up for the jobs the city lost, he said.
At the New Castle-Henry County Chamber of Commerce, Executive Director Mike McIntosh has a different perspective. He described the end of 2008 as "overall good" for Henry County businesses.
Several chamber members told him they had a better year in 2008 than in 2007, he said. Though the national news media depicts a poor economic environment, he isn't sure that's accurate.
"I question how bad things really are," McIntosh said.
When will it get better?
Jerry Gassen, president and CEO of Ameriana Bank and chairman-elect of the New Castle-Henry County Economic Development Corp., said most economic forecasters predict a better year than 2008. Though the first quarter will still likely be slow, he thinks the second will show a little less of a downturn.
The second half of the year has the potential to make a comeback, he said.
"I think it's going to be gradual," Gassen said. "We won't see a dramatic turnaround overnight by any means."
Economic stimulus by Congress and the U.S. Treasury Department will likely play a role, Gassen said. President-elect Barack Obama's policies could also have a positive effect on the country's economy, he said.
McIntosh said he looks for significant improvement in this year's economy. If Henry County residents spend their dollars at home, he believes local businesses will thrive.
"I contend that Henry County as a whole will have a better year in 2009 than 2008," he said. "I predict a 7 percent increase."
In the meantime, Small said he's meeting with the city's new companies to ask if there's anything the city can do to help. He's also met with Metaldyne, which faced several layoffs last year.
Davis will look for ways to diversify the local economy this year. But one of her main focuses will be on business retention and expansion. She wants to make the local economy healthy enough that businesses can afford to add one job each.
"You can only imagine what the impact would be," she said.
The EDC will continue to pursue new developments even throughout the economic downturn, Gassen said. For some businesses, he said, the recession could be an opportunity to either expand or acquire existing businesses as competition falls by the wayside.
Gassen is hopeful for what lies in store this year. There's no reason to panic over an economic downturn, he said.
"(Sen. John) McCain got criticized for saying the economy is fundamentally sound," he said. "But fundamentally, it is sound. Going through downturns is a normal part of economic cycles."
© Copyright 2024, The Courier-Times, New Castle, IN.