In the midst of a recession, Binghamton’s local businesses are just starting to feel the symptoms of a worsening economy.
“We haven’t been directly affected by these problems … but as the national economy softens, we’re going to be indirectly affected,” said Christian Harris, a senior economist with the State Labor Department at Glendale Technology Park, Union.
The recession, which began in December 2007, resulted in a loss of 800 jobs between October 2007 and October 2008 in the Southern Tier, he said. This area encompasses the Binghamton, Broome and Tioga counties.
According to reports from the Press & Sun-Bulletin, there has been a 35 percent increase in the number of people collecting unemployment insurance benefits in Broome and Tioga counties.
Harris said that a loss of 400 jobs have been concentrated in manufacturing industries.
Recent layoffs were announced by businesses such as Modern Marketing Concepts, Inc., National Pipe and Plastics, Gannett Co., Universal Instruments in Broome County and Sanmina-SCI Corp in Tioga County, totaling up to 245 job losses, according to a brochure from the Broome-Tioga Workforce New York.
In addition, many companies such as Liberty Travel, Made in Japan, DHL and Coca-Cola Bottling Co. have or are in the process of closing down this November, according to the brochure.
For restaurants like Thai Basil in Endicott, the effects of the recession have hit, but not as hard.
“[The business] is not as great … it’s not the greatest at the moment. I’m beginning to cut hours on employees,” said Aaron Chamleunsouk, co-owner of Thai Basil.
Josh Ruff, a tattoo artist at Barrett All Tattoo in Endicott, agreed.
“It hasn’t been too bad. As far as this business goes, it has slowed down a bit,” he said. “I’m not sure if it’s due to [the recession], but it slows down every time this year.”
For florist shops, stores have been increasingly busy, despite the national market.
“I’ve been here 28 years and in the first two weeks of November, [business] has been slower than normal,” said Mary Morley, store manager and owner of Angeline’s Florist and Greenhouse. “Since then, [business] has been as good as, if not even better than last year.”
She said she believes business is better in a slower economy, especially during the holidays, because “people aren’t going to get the big ticket items but they still might send a fruit basket.”
For Wal-Mart, sales and hires have been increasing, not declining.
Chuck McDowell, regional compliance manager at Wal-Mart in Binghamton, said that the economy is affecting people’s buying behavior “in the sense that people are buying more of the essential items rather than the more elaborate type of items.”
Wal-Mart has seen a steady increase in their business, McDowell said.
“We’re one step ahead of the recession,” he added. “We’re the right business for the time. We’re designed so that people get the best bank for their buck.”
Alan Lockard, visiting assistant professor of economics at BU, agreed.
“Wal-Mart offers a wide variety of goods which consumers wish to buy which are typically lower than their competitors,” he said. “Lower prices are especially attractive as people’s incomes fall, or as they become concerned that their incomes may fall.”
“Therefore, in an economic downturn, it is reasonable to expect that people will be more likely to switch from buying goods at higher prices elsewhere to buying goods at lower prices at Wal-Mart,” he added.
For others, the biggest challenge isn’t the recession.
Noris Davis, Real Estate manager for 60 years in Endicott, said the economy has not really affected the housing market, but “it’s going to trickle down soon.”
“The biggest problem we have is some of the young people want to spend too much for houses that they really can’t afford,” she said. “So many young people will go out and buy, buy, buy and they want everything to be new and nice and expensive … sometimes you have to take something that is not quite that way.”