Some local business owners hopeful about economy here
Thursday, November 6, 2008 12:36 PM EST

By Aaron Morgan

Times Staff

Many economists are now predicting a painful global recession. Three Bryson City business owners spoke to the Times this week about the current effects and the near future for the local economy.

Ron LaRocque, who owns Watershed Trading Company in partnership with Scott Mastej, has a positive outlook. A little more than two weeks ago, he held a grand opening of the Watershed Trading Company's second storefront.

LaRocque said several people inquired about his business plans after the grand opening. "Someone came up to me and said, 'It's nice to see that someone is still expanding in this down economy.' I responded, 'If you look like you're dead, you already are,'" he said.

The new storefront also includes furniture and materials LaRocque uses in the home construction aspect of his business. He said, "We can't always fix all the problems, but certainly go on and fight and wait for economic rebound. If I don't have enough money, I have to figure out a way to do it. What I meant by that is I that I brought in my cabinet and granite line because I'm already in construction."

LaRocque said he thinks Bryson City's economy is "somewhat protected from recessions" because "what our area offers is so unique." "The people who travel to Swain County may not be going to Europe right now, they might not be going to the West Coast, but they are still bringing their families here. Our location and the unique experience offered here protects us."

He said he has not seen a decline in his construction business. "In the construction business, I haven't really had a downturn. I'm very fortunate that business hasn't turned for me. I think I'm not alone. The doomsayers of the world are really creating more angst than we need."

However, LaRocque said people are certainly suffering now, especially those who are close to retirement and have retirement funds tied up in declining investments. He said he is certain that the stock market will rebound, but he thinks the consequences of the current crisis will be longer lasting than the previous downturns of the 90s.

Janene Lancaster, owner of the Madison's on Main, said the economic crisis has "definitely effected every person at every financial level."

Lancaster also owns the Great Smokies Fine Arts Gallery and Native American Craft Shop in Cherokee. She said her stores are not normally effected by economic downturns, but this year has been different. "People are looking at their portfolios and they are cutting back. Some people just don't know that they'll be able to bounce back, especially those who getting close to retirement."

"There has definitely been a decline in sales, more so in the spring and summer. But our fall season, due to our incredible fall colors and the fact that the leaves are still on the trees, sales have gone back up and I think people are trying to be positive again," she said.

Lancaster credits the spring and summer downturn to the gas crunch that heavily effected the counties of Western North Carolina. Although sales are down from last year, she said November is off to an "incredible start."

"Normally, in late October, before Halloween, it's like a light switch. We're lucky if we get a couple of good weekends between then and Thanksgiving. I'm hopeful to have a good holiday season, but I still believe it will be a couple of years before we get back to doing what we were doing."

In contrast to LaRocque, Lancaster doesn't believe that the local economy is protected from national trends. Despite that belief, she said her businesses "are here to stay. I am confident that strong businesses here will survive the current problems in the economy."

Lancaster also said she would like to see more creativity in Bryson City business models. "What Bryson City needs is new, fresh ideas. We need people to create more innovative startup businesses instead of duplicating services and business that we already have."

Gary Jennings, owner of Mountain Ford, said October sales declined by approximately 30 percent. He said the whole year has shown a decline of approximately 10 percent.

He said he had to layoff one employee for economic reasons, but work hours have stayed the same. "Luckily we weren't overstaffed to begin with," he said.

Although sales are down, Jennings said more people are bringing in their cars for service. "People will repair their cars and / or spend money on their cars on maintenance as opposed to trading them. Service has spiked," he said.

Jennings said American automakers are cutting back on production, so inventory will likely be down in the coming months. In the short term, that means some models and specific option packages will be harder to get.

Jennings is positive about the future of Mountain Ford. "The risk for a small dealership just isn't as great. Smaller dealerships are fundamentally sound through economic downturns," he said.

He said when the economy turns around, he expects to see a significant spike in business. "If we see this so-called recession start to dissipate, I think we're going to see a lot business from people who've been waiting to buy a new car. Once it makes that turn, I think business is going to be very, very good. We're going to have a surge after the turnaround - there is not a doubt in my mind."

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