ECP at Strictly Business Forum
The North Country Economy:
On A Roller Coaster Ride That Will End Well
By Michelle Marsch Ouellette
Reprinted from Strictly Business, January 2009 (published by The Northeast Group)
For area businesses and organizations, 2008 was a roller coaster ride with unpredictable highs and lows. Those extremes, however, were mitigated by region’s strengths, according to the business, nonprofit and community leaders at our table at the 19th annual Strictly Business Forum.
Joining me were Randall Whisher, president of ECP Building Envelope Specialists Inc; Drew Sabella, owner of Anthony’s Restaurant and Bistro; Robert DeCamp, Director of regulatory affairs and consulting for Deiringer Logistics Consulting Group; Alice Recore, president and CEO of Mountain Lakes PBS; Michael S. Dier, senior vice president and chief investment officer at Glens Falls National Bank and Trust Company; Fredrick Woodward, interim president of Clinton Community College; New York Assemblywoman Janet Duprey; and Peter Whitbeck, real estate broker and owner of Coldwell Banker Whitbeck Associates. All agreed that factors like the state’s budgetary predicament, energy prices, trade with Canada, the downturn in economy and access to higher education will continue to shape the region’s economy into the future.
The State’s Picture
Duprey painted a grim picture at the state level, saying, “If the New York State Legislature were a business, it would have gone bankrupt and locked its doors.” According to Duprey, 2008 was a bad year for the state – and matters are about to get worse. Having failed to deal with the $1.7 billion dollar gap in the budget in January.
Duprey, who served for many years as Clinton County treasurer, voted aginst the 2008 budget because she felt it spent too much. Little did anyone know at the time, however, how greatly they had over estimated revenues for the year. The trouble is, in part, Duprey said, because about 23 percent of tax revenue in New York comes from approximately 5,000 taxpayers. “And you don’t have to be a numbers person to know those 5,000 work on Wall Street. That’s the reason our revenue has just not come near meeting projections,” Duprey continued. “We saw that coming in April, but still, for some reason, proceeded to adopt a budget that was not realistic.”
Energy Prices
The high energy prices seen early in the year were a boon to Whisher’s business. The company re-engineers buildings, primarily for municipalities and schools, to ensure energy savings. When energy prices dropped and the economy worsened, however, all that changed. “What happened along the way is that fear crept in,” Whisher said. “Fear of not having enough money to do both the improvements and to pay for fuel.”
Lower energy prices also influenced how much ECP could charge for services. “The more energy we can save, the more improvements we can bid,” said Whisher. The end result is that sales are about 30 percent off from last year. Still, Whisher is positive when it comes to the future. “We have already booked 50 percent of what we did last year,” he said. “We think we’ll have a good year in 2009.”