Local economy mirroring some national trends

by Adam Townsend
For The Post

Though there have been significant changes in the Athens area economy since the end of the last fiscal year, the city has not escaped national downward trends.

Bill Arnette, president of Economic Development of the Athens Chamber of Commerce, said the Athens area business climate has mirrored the softening national economy. An important objective of the Chamber is not only to bring in new businesses but to protect the interests of those invested in the community, he said.

"The city, the county and the Chamber are all very concerned about preserving the business here," Arnette said.

Chamber Treasurer Robert Norris, also of Bank One, 2 S. Court St., said Athens is not sheltered from the factors affecting the national economy. For example, he said fewer entrepreneurs have applied for business loans, even though there has been an increase in refinancing because of lower interest rates.

"There is a lot of mortgage activity that does not necessarily cascade over into other industries," Norris said.

Though his business has experienced a good year, Ed Pennington of Ohio Valley Trading and Exchange, 25 E. Stimson, said he feels pressure from the economy.

"There's a lot of pressure on local business to perform – for us to continue to prosper and grow in light of the competition that's coming to town," he said.

But Pennington said he is confident his store can handle the increased competition from new area businesses, such as Wal-Mart and Ruby Tuesday restaurant.

Arnette said some businesses will be adversely affected, especially stores that sell the same types of products, such as K-Mart and some area grocery stores. Smaller, specialized stores should not be affected.

Another important economic expansion is T.S. Trim Industries' decision to expand its plastics-injection molding line to make new parts for the 2003 Honda Accord. Athens offered the corporation, at 10 Kenny Drive, a tax abatement to expand capacity in its Athens plant rather than in Canal Winchester, Arnette said.

Many times when a company stops investing in a plant, it might be the first step on the path to that plant's shutdown, he said. This makes the abatement an important incentive.