BY SUSAN ERLER, Times of Northwest Indiana
serler@nwitimes.com
Local financial adviser Don Nelson put on a combat helmet to address fellow Northwest Indiana business and industry leaders at a recent meeting of The Times Board of Economists.
Nelson's gesture brought laughs, but the economy was no joke for representatives of the region's leading economic drivers, from steel and construction to entertainment and media.
Turmoil in the nation's housing and banking industries, government bailouts, erratic stock performance and loss of consumer confidence took a toll on the group's outlook.
Asked to rate the economic health of the nation in the last three months, the business leaders settled on an average of just 3.81 out of a possible 10.
The score was a downgrade even from the 4.31 they assigned at the end of the second quarter and way off of the 7.62 they handed out a year earlier.
The group felt a little better about the region's economic health, awarding it a 4.56 rating amid some bright spots.
"We're very fortunate to have some very strong banks in Northwest Indiana," said Michael Baird, regional president of Harris Community Banking.
Despite his battle-ready outfit and a stock market headed into unknown territory, Nelson, first vice president of investment at Merrill Lynch in Merrillville, said he's optimistic.
"If you drive down U.S. 30 from Valparaiso to Dyer, the roads are jammed. The lots are full. Somebody is doing something," Nelson said.
After adding a third shift recently, steel seller Roy Berlin, president of Berlin Metals, was upbeat.
"There's only one end of the world, and this is not it," Berlin said.
Others weren't quite so optimistic.
"I'm not optimistic about the economy, and I'm not optimistic about the future of the restaurant business," said John Barney, president of Barney Enterprises, which owns a variety of fast food restaurants in Northwest Indiana.
The fast-food side of the industry seems to be faring better than the casual dining segment, which lost ground as families' discretionary spending got eaten up by higher fuel and grocery prices, Barney said.
The good news for home sales locally was that the number of listings has declined, diminishing an oversupply of unsold homes, said Bill McCabe, broker/owner of Century 21 Executive Realty in Schererville and part owner of Century 21 Alliance.
"There are lots of good buys out there," he said.
New bank buildings, pharmacies and health care facilities have helped to keep the local construction industry afloat, said William Hasse, president of Hasse Construction Co.
"Medical and surgical centers are still a very strong market," Hasse said.
Heading into the all-important holiday season for retailers, Rosemary's Heritage Flower shop owner Rosemary De St. Jean said a loyal customer base gives her hope.
"When it comes to the holidays, people still like to give, so they're going to spend," De St. Jean said.