With a potential recession on a national scale looming, most of the 3,000 small businesses in the Bryan-College Station area have yet to see the same drop in sales experienced in other regions, according to experts.
Jim Pillans, with the Small Business Development Center in Bryan, pointed to the economic benefits created by Texas A&M University and said the Brazos Valley has remained an enigma because local small businesses have seen little negative influence following instability in the national market.
"Having a major state university helps in that it brings in a high number of visitors to B-CS, and then you have stability brought on with over 60 percent of residents employed by the government in some capacity," Pillans said.
"Most of our businesses here are related to food service and retail. And I think, as long as such a large number of people are continuing to come to town, as long as those who work for the government in some form don't lost their jobs, then I don't think our spending is going to change much."
However, Hugh Stearns, president of the Brazos Independent Business Alliance, warned that owners need to anticipate a trickle-down effect leading to an eventual downturn for many businesses.
"When there's a recession, typically it's the lower end of the economic spectrum that is hit first," Stearns said. "So the businesses that would theoretically be impacted first would be businesses where people who don't quite have that much money would first start to cut back on. So trickle-down economics works better in reverse than it does in forward. In other words, when there's an economic recession, the first people to feel it are those at the lower end of the economic spectrum."
He said it's likely that a recession prompts some people to cut their spending.
David Kitchens, general manager for ABC Pest and Lawn Services in College Station, said many customers have cut back on using his services on a regular basis, instead switching to using them only when needed.
He said they've been forced to get creative with their finances to keep from cutting employees, including changing their health insurance provider to one with a lower rate.
"That was an area that we could cut expenses on to where it wouldn't affect our employees or our customers," Kitchens said. "We did do a price increase, this year, over time. Three to
4 percent on some of our customers, but a lot of that was pertaining to them not having an increase over the last several years."
He said his business managed an
11 percent increase in sales over the past year and offers Christmas light installation to boost its revenues.
"We can certainly tell that the economy is affecting our business in some ways," he said. "Personally, I know me and my wife have cut a little bit. Maybe not go out to eat as much. Maybe not take as many trips. Watching spending on gas and trips."
Brazos Natural Foods, which specializes in organic and whole foods, has yet to see any drop in sales, according to owner Janis Atkins.
"We're a little bit up from last year," Atkins said. "I hesitate [to give specifics] because it changes from month to month. Let's just say business is up."
Atkins, whose Bryan store celebrated its 20th anniversary in August, credits better access to health and diet information as a primary factor in a steady increase in sales despite poor economic conditions.
"I think people are taking more responsibility for their bodies," she said. "People are not just reading more only in diet, but in supplement and in exercise. That could be another reason that we're not seeing much of a dent."
Like Brazos Natural Foods, Earth Art in downtown Bryan is unique in what it offers to residents in Bryan-College Station.
Earth Art, which has been owned for nearly 17 years by husband and wife Eric and Hazel Todd, sells collections of items from around the world.
While declining to give specifics on sales over the past year, store manager Michael Smith described business as "growing and good."
"With all of the new businesses that are down here and the way that downtown Bryan has been improved, we are confident that our business is not going to be affected the way other cities have seen their businesses affected," he said. "The owners of Earth Art have been an integral part in the revitalization of downtown Bryan, and we're here to stay."
But Stearns warned that the holiday season may account for a considerable decrease in sales of luxury items.
One specialty uniquely benefiting from the economic downturn has been the auto-repair industry.
Pete Kountakis, owner of Pete's Auto Care in Bryan, said that for many people, not having a running car is not an option, which has led to more business for the 20-year-old shop that recently expanded on East 29th Street.
"In the long term, we'll probably be better off because people aren't going to be buying cars, they'll keep their cars and maintain them longer and take better care of them," Kountakis said. "If people don't buy new cars, then they have to keep their old cars, and I have to fix them when they break down. So things might be a little bit on the upside for us if the economy continues to be bad."
Kountakis' profits are at a 12 percent increase from this time last year, he said, adding that he anticipates a possible slowdown if gas prices shoot back up after dropping to less than $3 a gallon.
"Things might go a little downward from where we have been, but not as bad as maybe a retail shop," he said. "People aren't going to spend a lot of money on clothes now. But as far as fixing cars, people might not want to get everything fixed at one time. They might want to postpone service. But eventually, people are going to have to get it fixed because they can't afford to not have a car."
RSS
Mobile
Daily Emails
Twitter
Facebook
