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.