Economy Series: Some businesses grow in sluggish economy

People need food. They need clothing. And items such as laundry detergent, aspirin, batteries and pens are also always in high demand.

Because of the consistent demand for these and other similar products, many businesses that are involved in their production, transportation, marketing and/or sales report that they're doing fine, despite the budget tightening of consumers over the past year or two.

Companies that offer products and maintenance involving air conditioning and heating also report a good, steady business. People are used to comfortable temperatures in their homes. Rebates and incentives to purchase more efficient appliances make them attractive to consumers.

Gary Eads, the owner-operator of six McDonald's restaurants in Douglas County, said that from the trade publications he's read, many families have traded down from eating at midtier restaurants to fast-food restaurants.

Steve Ralston, the store director for Sherm's Thunderbird in Roseburg, said the store has always done well when the economy is in rough shape. He said there are more new faces in the aisles of the store and in the check-out lines, indicating more people are buying more groceries and eating out a little less.

Karen Kruse Carnley, the manager of the Kruse Farms Market, Bakery and Gift Shop in Garden Valley, said she believes consumers are literally buying into the “buy local, buy fresh” philosophy. She said the market sold more food, such as corn and peaches, in bulk this past summer, and people canned and froze the items.

Mark Brosi, owner of Brosi Sugar Tree Farms of Winston, also said his bulk sales were up, indicating more home preserving was done.

“Every year we seem to do better and better,” Brosi said. “We're definitely seeing more customers. When the economy gets worse, the homegrown items seem to do better. People definitely seem to be watching every penny.”

Getting necessary goods to people takes transportation, and Andy Owens of A&M Transport of Glendale said his trucking business has been as busy as last year. He admitted there's been a decrease in the profit because concessions have had to be made, but the company's 135 semitrucks and trailers have continued to roll and its 190 employees are still working.

“Even in this economy, people still have to eat, they still have to have paper products, they still need food for their pets,” Owens said. “They may buy a less expensive product, but they still buy it. The products still have to get to them, somehow, and that's why transportation of these products hasn't seen a decline.”

A&M Transport trucks run up and down Interstate 5, primarily from Los Angeles to Seattle.

Owens said that when his customers have asked for concessions, he's had to go to his insurance carrier and to his dealer for truck tires and parts, and re-negotiate deals to help make up the difference.

“It's a matter of survival for me,” Owens said of dealing with concessions to try to keep everybody in business. “We've had to sharpen our pencil up. We're watching every penny.”

Owens explained that in the past, the country has manufactured itself out of recessions. But he said now when he looks at Douglas County, he realizes two boat manufacturers are gone and there's been a major curtailment in the lumber industry. He added he previously bought trucks in Portland, but that company is now in Mexico.

“Buying those new trucks isn't going to help our economy,” he said.

Curt Smith, the 15-year owner of Roseburg Resale, said he also believes he's dealing with necessity items and that's keeping his business steady. He sells used furniture and low-end new items.

“Just the aspect of still being in business is pretty pleasing,” he said. “We've still got the doors open and that's better than some businesses.

“We're pretty fortunate because we do have necessity items … it's the usability factor,” he added. “People can sit on the floor, but it gets tough sleeping on the floor, and people still like to sit on chairs and sofas.

“A lot of people, without saying it, are here because they can't afford new.”

Jamie Hennricks, the owner of Kid Mart, said her business has improved in each of the 11 years she has owned it. Kid Mart has used clothing for babies through teenagers. She said she's had more customers during these tougher times.

People can either buy at the store or can bring in their own lightly used clothes. If the clothes are accepted, they'll receive credit to make purchases in the store.

“I think I'm providing a service for the area,” Hennricks said. “I have people of all incomes who come in.”

She also has a pile of clothing for donation and will pull items from that for somebody in special need. Or she will make donations to a couple of groups who get the clothes to those in need.

“The business has paid my bills for 11 years,” Hennricks said.

For people who just need money, Associated Buyers in Roseburg has been an option. It's the only state-licensed pawn business in central Douglas County. Owner Dave Maley said business has been pretty steady.

“We're seeing a lot of higher end stuff come in … jewelry, firearms, tools,” he said. “They're both being pawned and sold.”

He said interest on a pawn is better than a bounced check. He added that customers have been good, honest, hard-working people who just need some instant cash. He said most people so far have been able to come back within 90 days, pay back the cash with interest and fees (a sum of 8.5 to 9 percent) and retrieve their items.

Having heat in the winter — and possibly air conditioning in the summer — helps people feel more comfortable, especially if there are struggles in other aspects of their lives.

“Heat isn't going to be the first thing that comes off somebody's list when they're cutting back,” said Erin Gogel of Mahalo Heating & Air Conditioning of Roseburg. “People spend a lot more time at home during tough times and they want to keep their homes comfortable.”

Smith, from Roseburg Resale, said the economy has benefited the businesses that have managed to keep their doors open.

“The whole thing about the past couple of years is that it's sort of weeded out the marginal players in every business and eliminated some of the competition,” he said.

He had a suggestion to help improve the economy.

“We need to stop with some of the tax raises,” he said. “That'll allow people to have more money in their pockets, and then they can spend it the way they want and that'll help business.”

• You can reach Features editor Craig Reed at 957-4210 or by e-mail at creed@nrtoday.com.