Some businesses in Valley bullish about recovery

By Don Shilling

Some are adding workers to meet increased demand.

YOUNGSTOWN — Some local businesses are seeing signs that the Federal Reserve chairman was right — the recession could be over.

“The worst is behind us, and we’re looking forward to the fourth quarter,” said Lynda Malone, co-owner of Warren Fire Equipment in Lordstown.

She was among the business officials who were looking to bolster those year-end sales by setting up a booth Thursday at Business Showcase 2009 at the Covelli Centre downtown.

Comments collected at the event supported the view of Ben Bernanke, reserve chairman, who said this week the recession that started in December 2007 “very likely” has come to an end.

Among those who have seen business pick up is Ellissa Smith, vice president of Administrative Network Technologies.

Sales for the Boardman computer networking business started to increase last month. She credited the federal Cash for Clunkers program with boosting the overall economy, not just car sales.

“It gave people the impression that it was OK to spend money,” she said.

It was a different story this past spring. The company’s sales dropped about 25 percent, and its staff went to four-day workweeks.

Lately, however, the company has regained nearly all its sales volume as real estate offices, title companies and tire retailers have started calling with orders. Workers have returned to their normal work schedules.

Malone said Warren Fire Equipment felt the economic slowdown from November through February. As orders slowed, the company conducted in-house training for workers, rather than lay them off.

“We tried to take advantage of those quiet months to be ready when things started moving again,” Malone said.

Equipment orders from fire departments started to increase in May. Demand for fire-suppression systems picked up in June, partly because of remodeling work being done by Pizza Hut.

Malone said she expects sales to be about $9 million this fiscal year, compared with $10.5 million in the previous one. The company employs 38, including 22 at its main office in Lordstown.

David Daichendt, vice president of operations at Microdoctor.com in Warren, said he laid off a few people from his staff earlier this year because of the slowdown.

Caught in a deepening recession and credit crunch, businesses didn’t want to spend money on computer maintenance or upgrades, he said.

“After things started breaking, we started getting busy,” he said.

At first, the orders were mostly for maintenance work, but now companies are starting to replace their servers, phone systems and other equipment, he said.

“We’ve just been swamped the past few weeks,” he said.

Employees who were laid off have found other work, so the company is looking to hire. It has 10 employees.

American Business Center, a Boardman retailer of office equipment, is looking to add between five and seven workers, said Robert Wagner, president. He already has hired four new workers this year.

He said the company’s sales have grown significantly this year despite the recession.

Orders didn’t slow because businesses depend on office equipment, he said. Also, other retailers have either closed or been bought out by out-of-town companies, he said.

Henry Nemenz, who owns seven area grocery stores, said his sales are up as people go out to eat less often.

Sales are up 3 percent this year, which Nemenz said is significant because food prices are down at least 5 percent.

He has noticed a change in shopping habits during the recession, however. Shoppers are coming to his stores more often, but spending less on each trip, perhaps because of tight budgets.

The Business Showcase was sponsored by the Youngstown/Warren Regional Chamber. The event attracted 93 vendors, compared with just over 100 vendors last year.

Vendors said the show is a good way to meet new and current customers. Wagner said American Business Center has been part of the showcase for each of its 16 years.

“We do business, and we get great exposure from it every year,” he said.

shilling@vindy.com