Business community remains optimistic as recession wears on
by Tim Gillie
Mar 10, 2009 | 1310 views | 0 0 comments | 18 18 recommendations | email to a friend | print
Quality Automotive New Car Inventory Manager Jack Bell shows the amenities of a Chevrolet HHR Crossover vehicle Monday afternoon at the Tooele dealership. Local business owners are trimming costs during hard economic times, but they remain bullish about a rebound.<br>- photography / Maegan Burr
Quality Automotive New Car Inventory Manager Jack Bell shows the amenities of a Chevrolet HHR Crossover vehicle Monday afternoon at the Tooele dealership. Local business owners are trimming costs during hard economic times, but they remain bullish about a rebound.
- photography / Maegan Burr
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Local businesses are cutting costs but keeping their chins up as they look for an end to the worst recession in decades.

“We have trimmed costs wherever possible, re-examined every contract for service, and not replaced some people when they have left,” said Jack Bell, new car inventory manager for the Quality Automotive Group, describing efforts his company has made to save costs as car sales have decreased over the last two years. “Two out of three of the automakers that Quality represents are on the verge of financial extinction. GM is seriously teetering on bankruptcy, and the fallout of a U.S. automakers going out of business would be disastrous to the economy.”

Yet, Bell has so much faith in the Tooele market that he’s ordered more new cars for this spring than he did last year.

“Several things are to our advantage,” Bell said. “Interest rates are good, banks and especially credit unions in Tooele are still loaning money for cars, and the used car market is doing great, so trade-in vehicles are worth more today.”

Despite calls for more fuel-efficient cars when gas prices went sky high last year, Bell said four-wheel-drive pickups, SUVs and diesel trucks continue to be top sellers in Tooele.

“We will order a mix of new vehicles,” Bell said. “We need the inventory on the lot to make sales. We are not a mail order or Internet business. People want to come in and see, touch, and drive the new cars before they buy.”

Bell’s optimism is being echoed by business people around Tooele Valley, many of whom believe they’re still being spared the worst of the recession.

Wal-Mart Stores Incorporated recently announced a 5.1 percent increase in same-store sales across the nation for February, and according to Tooele store manager Mark Wozney, the Tooele Wal-Mart is keeping pace with those results.

“I can’t give you the actual figures,” Wozney said. “But our sales are up.”

Food sales account for a large amount of that increase, according to Wozney.

“All departments in the store are doing well,” Wozney said. “As times get hard, people turn to the lower-priced store to get more value for their dollar.”

Wozney said staff at Wal-Mart will remain stable, with no layoffs or large-scale hiring planned for the near future.

At Macey’s Food and Drug, sales are holding up but shopping patterns indicate that people are being more cautious in their purchases, according to Joleen Thurgood, store manager.

“Sales have been good,” Thurgood said. “After our case-lot sale over the next two weeks, we will have a better idea of how things are going overall. So far we have not had to lay any people off. However we have hired less people than we did a year ago.”

Store records show sales for staple items at Macey’s have been good, but sales of impulse items has been down, and in the non-food department, lower-end products are selling better, according to Thurgood.

“This indicates to me that customers are being more careful and thinking about their purchases,” Thurgood said.

In downtown Tooele, Wendy Conklin, manager of Sweet Pea Boutique, said the recession has actually helped her business.

“Sales have been slightly up,” Conklin said. “We sell quality high-end used clothing. Mothers can come in and get good clothing for their children at a reasonable price.”

At Main Street Garage, owner Joe Miller said business volume has been steady but gross sales are slightly down.

“People are not going for any of the cosmetics or upgrades,” Miller said. “They want just the basic repairs to keep their cars running. Some people have had to turn their new car in because they can’t make payments and are now driving an older car with more miles that needs work to keep it going.”

Miller has had to change his way of doing business to a cash basis, as opposed to accepting payments.

“I used to let people make payments, but with the times the way they are people are having troubles making their payments,” Miller said. “I wish I could continue to make informal arrangements for payments and help people out, but I also need to make money to pay my bills and keep the doors open.”

Bell said despite the tough times he sees brighter days ahead.

“Sure, some of our businesses have cut back their production, but very few have closed outright,” he said. “The rest are poised to go back into production. We have new businesses on the way. ATI will open their titanium plant at Rowley and employ people. Tooele City is ready to expand 1000 North and there are companies ready to come in and develop the property off 1000 North. There is light at the end of the tunnel.”

Tim Gillie: tgillie@tooeletranscript.com
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