Elkhart County business leaders are cautious about recent market activities

By Marilyn Odendahl and Josh Weinhold, Truth Staff

modendahl@etruth.com; jweinhold@etruth.com

MIDDLEBURY -- The "what if" scenarios that Mitchell Bender imagined for his business never included a deep and prolonged economic recession like this.

The founder and chief executive officer of Pace American, maker of cargo and auto trailers, said he was like many of his colleagues in the industry and believed the first dip in sales was temporary. Then later as the significance of the downturn became known, Bender was shocked.

He is no longer confident the old adage that Elkhart County recovers from recessions first will hold true in the current economic crisis.

Consequently, he cautiously describes recent activities in the market as an uptick and does not want to call them evidence of an upswing. However, he is an optimist, he said, and the growing number of consumers visiting his dealers' showrooms as well as the increase in retail and wholesale loan applications and approvals may be a faint light at the end of the tunnel.

Brian Gildea, the Elkhart city economic development director, also sees some movement that may signal the economy is climbing out of its slump.

On the one hand, two tax phase-ins granted to local companies in 2009 indicate business activity is starting to pick up, but on the other hand, neither incentive package went to recreational vehicle operations, which are the key to Elkhart's economy.

Before RV manufacturers can rebound, some of the excess inventory will have to move off of dealers' lots, he said. Only then will production really be able to pick up and put people back to work.

"From what I can see, the business climate is improving," Gildea said. "Albeit from a historically low level."

As local leaders champion attracting different kinds of businesses to the area to diversify the economy and better insulate it from declines, the national attention on Elkhart and its troubles has stirred interest among companies that are looking to expand. Dorinda Heiden-Guss, president of the EDC, said she is fielding inquires from businesses wanting to know more about Elkhart and its workforce.

Along with new and different businesses possibly settling in the county, Heiden-Guss said the entrepreneurial base that is already here could reinvent the local economy. The influx of federal stimulus dollars combined with the educational resources available locally could fuel new ventures in such areas as green technology and nanotechnology. "This could be a turning point, a change in the attitude, a reinvestment in ourselves," she said.

While none of his forecasts included a recession that is sometimes compared to the Great Depression, Bender is not considering a "what if" about relocating. In fact, with business slightly improving he has been able to recall about 14 workers and remains bullish on northern Indiana, calling it an "outstanding place" to run a manufacturing company. "I can say it's got the best work force," he said.