Local economy stories

September 21st, 2008 by Ken

The uncertainty in the national economy is making itself felt here at home.  Businesses and organizations are reluctant to make investments in equipment and personnel because they don’t know what the future holds.  Here are a few examples. 

A businessman friend of mine has had a good year.  So good in fact that he was considering buying a new piece of equipment.  This new equipment would cost about $600,000.   He has already put aside about $300,000 towards the purchase and was thinking about getting a loan for the remainder.

Now, however, because of the uncertainty of the economy, he has backed off and is keeping his money fluid in case he needs it for something else.  He will purchase no new equipment now.

Another man I  know has been looking for more than six months for an employee to fill an opening in his organization.   He thinks he has found the right person, someone with all of the skills and experience the job requires.  However, he has now changed his mind and has decided not to fill the open position, and save the money the hiring would have caused. It’s all  because of the uncertainty in the economy.

A local businessman  told me recently that he had planned to move into a new building.  He had saved $100,000 to put down.  After the recent bank and financial institution’s failings, he decided to pay off his debt, particularly the company vehicles, and bank the rest of the money in case it’s needed.

If you know of similar stories, share them with me.  We’ll keep you anonymous but your story needs to be told.

Posted in Business, The Real News

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