Conn. Lags Behind National Trends
If 2010 turns out to be better than 2009, will 2011 be better than 2010?
Connecticut’s economy runs slower than the national economy, with the state typically experiencing a five-month delay before feeling the country’s gains and losses, said Demetrios Giannaros, business professor at the University of Hartford.
The modest gains Connecticut businesses have experienced compared to 2009 will turn into even bigger gains next year as long as the national economy keeps trending upward.
“Connecticut lags behind the rest of the country, so 2010 will probably be our bottom out year,” said Mark Passeri, president of A&S Boats on Route 5 in South Windsor.
Still Waiting On The Banks
Overzealous bank lending helped lead to the current economic downturn and overcautious bank lending is keeping the recovery slow.
Is there a happy medium?
From 2002-2007, banks were buying just about every loan Van’s RV Center on Route 5 in South Windsor would send for its customers.
In 2009, the banks were picking up barely anything. Lending has loosened up this year, Van’s owner Mark VanOstrand said, although it’s not as carefree as three years ago.
“They are underwriting couples they wouldn’t have underwritten a year ago,” VanOstrand said.
In 2005 and 2006, New England Silica, Inc. on Route 5 in South Windsor had a huge influx of customers with home equity loans, buying whatever they could.
None of that is happening anymore, said Silica owner Bob Bellody. But he is buoyed by customer loyalty. The company was founded 61 years ago and has a strong customer base in a wide geographic area. Those loyal customers keep coming back and hold the hardscape provider’s revenues from tumbling in troublesome times, Bellody said.
“Our name is known throughout New England, and we have competitive pricing,” Bellody said. “We have a certain following.”
So does O&W Heat Treat, Inc. on Route 5 in South Windsor. The company was founded in 1963 and didn’t have any trouble holding onto its customer base after it moved from East Hartford in 1980.
In this recession, there’s been some belt-tightening, but the revenue losses haven’t forced the company to take any drastic measures, President Pat Ohlheiser said.
Gov’t Grows; So Does Concern
At what point do residents just get fed up with the state?
Mark Passeri, president of A&S Boats on Route 5 in South Windsor, has heard enough customers say they are picking up stakes and moving out of Connecticut, that he is fed up with the way the state’s governments operate.
“With the way they are raising taxes, it’s no wonder people are leaving,” Passeri said. “We have to tighten our belts when things get bad, not go after more taxes.”
Over the past 10 years, Connecticut’s population has grown by 3.3 percent, far behind the national average of 9.6 percent, according to the U.S. Census Bureau.
With taxes and government intrusion into their lives, Connecticut’s residents and businesses won’t be around much longer, Passeri said.
“There is not a bright future in Connecticut,” he said.
