Published: July 08, 2008 01:30 am            

BUSINESS: Some local companies doing just fine, despite tough economy

While some people believe the national economy is in recession, a number of local businesses are still going strong, despite the economic hard times.

A recession occurs when a country has a decline in gross domestic product or sees negative economic growth, lasting for a few months. A recession, along with the cost of just about everything going up, is leading some folks to stay home and enjoy certain activities instead of going out to do something. But many businesses are doing just fine for a variety of reasons.

Some may think going out for ice cream, hamburgers and fries is a luxury during economic hard times. But Rick Reid, owner of Reid’s Drive-in on Lake Avenue, said that people are still coming in droves, even though they may be tightening the financial belt a little.

“We’ve been doing well,” he said. “Weather’s been nice. The prices are low, the food is good. I’ve noticed we have gotten some more tourists this year.”

Reid said he notices tourists because most of them look at the menu before ordering. Most Lockport residents don’t look at the menu, they just order. A lot of the tourists are referred to Reid’s from other local attractions, Reid said.

“They send them here looking for a place to eat,” he said.

In return, Reid’s refers tourists to local attractions, as well, Reid added. Reid’s Drive-in is family owned, and aside from minor touch ups on the 65-year-old building, the place really hasn’t changed.

“Except for the T-shirts,” Reid said, referring to what his employees wear while they are on the job.

According to some financial experts, the worsening housing industry has been a big reason for the recession. Some wouldn’t think of building a home now. However Bob Martin, a home builder in Wilson, says times may be tough, but people can still afford to build a house. As president of RRM Developments in Wilson, Martin’s business acts as a “one-stop shop” for people who want to find a home or lot for sale, or to build a home and receive construction financing. He said his business was doing well, but he is also fighting the perception that building a home is too expensive.

“The interest is still there,” Martin said. “There are certainly pressures on the economy, but people can still afford to build. We just try to get them in the door and be realistic about it.”

Rising gas prices or heating and cooling costs have taken a bigger bite out of the budget, leading to the negative perception regarding the cost of building. Martin said people would be surprised what kind of house they can afford.

There has been an advantage though, for Martin, because the people who meet with him have a greater interest in actually building a house. In good times, Martin said he would have multiple meetings to build one house. Now, there are more productive meetings, and Martin is getting about the same amount of business.

“There’s a higher percentage (of customers) that are more serious,” Martin said. “They’re more aware of the costs.”

He added that home remodeling has picked up for his business.

Martin said he has had to advertise more than he had originally expected to, but it is working. He recently had a woman come to him after she was told building a home would be too costly for her. The woman saw one of Martin’s television ads and called him.

“We’re breaking ground next week,” Martin said. “You just have to be positive with people.”

Contact reporter Joe Olenick at 439-9222, ext. 6241.

        

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