BY DEANNA DERWAY
At the close of each year, we analyze the
changes that have occurred in our key economic
sectors during the past year, and evaluate the
opportunities and challenges that will shape
the overall economy in the upcoming year.
At the Washington County Local Development
Corp., we have seen a year of steady
progress ending with a strong finish approving
seven loans totaling almost $500,000. This is
significant to our prognosis of the economy
as it represents approximately a 50 percent
increase in activity from the previous year.
Other positive economic indicators we saw
in 2014 include increased business investments,
stronger balance sheets and further recovery of real estate prices. To some extent,
the economic uncertainty that persisted following
the recession seems to have subsided,
leaving increasing consumer confidence and a
willingness to invest in its wake.
Overall, we forecast a stronger local economy
for 2015 that is likely to make further positive
progress throughout the upcoming year.
The New Year brings with it new opportunity
and trends are looking positive for the economic
climate in our region. The steady progress
in the job market along with falling gasoline
prices seems to have brightened consumer’s
spirits. In the coming year, we predict continued
job growth and falling unemployment
rates for Washington County and the Capital
Region as a whole.
Meanwhile, businesses are poised to expand
as the economy performs better providing opportunities
to invest in equipment, facilities
and for an increased work force. Employers
in the U.S. are creating jobs at the fastest rate
since the 1990s and the economy finally looks
ready to expand at a healthy rate. Looking
ahead, consumers will see greater discretionary
income, and the resulting increases in
consumer spending will be an integral part of
the recovery.
One prevalent trend that will continue to be an economic driver in terms of investment
and job creation in our region is the increase
in craft beverage producers (beer, wine and
distilled spirits). The prospects for New York
agriculture that have been created from this
boom continue to expand, in turn providing
jobs in our local economy and fueling economic
growth throughout Washington County and
New York state as a whole.
This sector not only creates jobs but also
supports our farmers and brings in tourism
dollars across the state as well. Statistics show
that both the number of farm based businesses
manufacturing craft beverages using locally
grown ingredients and the total number of
manufacturers producing alcoholic beverages
have more than doubled since 2011.
The efforts of Gov. Andrew Cuomo and area
legislators to provide new support and funding
resources to encourage the purchase of locally
made products and attract visitors is ultimately
expected to lead to continued growth in this
sector.
While we are optimistic about the economic
outlook for 2015, economic factors outside the
U.S. could impact 2015 as many of the world’s
economies are experiencing slowdowns and
turmoil. But for the U.S. economy, the most
critical unknown is whether the Federal Reserve
will begin to raise the federal funds rate
which has been locked since 2008.
A Federal Reserve hike, whenever it comes,
could affect growth, inflation and exchange
rates around the world. Higher interest rates
are on the horizon as we also expect that the
Federal Reserve will bump up short term rates
at some point in 2015 which in turn will raise
lending institutions rates.
The primary service offered by WCLDC is
lending. Financing entrepreneurs, supporting
company expansions, equipment purchases
and real estate investments are just a few
of the services available. Another priority is
partnerships. The WCLDC frequently works
with financial institutions to assist businesses, as well as offer community development investment
programs for developers.
The WCLDC consistently collaborates and
engages with strategic regional economic
development agencies and statewide organizations
to ensure resources, programs and
funding streams are available to best serve
existing businesses and start-ups. Whether it
is upgrading existing machinery/equipment,
adding production lines, buying or building a
facility, acquiring working capital or job creation/
retention; the WCLDC has programs with
funding options to encourage growth across all
sectors throughout the county.
The good news is that exciting things are
happening in Washington County and we anticipate
another busy year in 2015. Unique new
businesses and expansions of current companies
are appearing regularly and the WCLDC is
committed to helping these employers receive
the services they need to be successful.