Business leaders looking to better days ahead in '02

Area business leaders and economists began this year with optimism, hoping that economic recovery is on its way.

A rebound in consumer confidence, surges in home sales, automobiles and other big-ticket items along with better performance of the stock market have some people hoping that better days are ahead.

"I think the year 2002 will be better than 2001," said stock broker Joe Domian. "The Federal Reserve has moved a lot of money into the money supply. When money gets passed around, people start doing things with it."

Domian, of Edward Jones in Cape Girardeau, said people will either spend or put the money into savings. "Either way, it will help the economy and market," he said. "Everything helps."

"We see the economy bouncing back," said Thomas Knaup, business development coordinator at the local Sam's Club. "The U.S. is a strong country. We'll bounce back and be better than ever."

Knaup, who spoke briefly at the Cape Girardeau Chamber of Commerce's First Friday Coffee, is one of a number of Cape Girardeau businessmen who are looking to 2002 with some optimism.

Dr. Bruce Domazlicky, director of the Center for Economic and Business Research at Southeast Missouri State University, said the economy could start to break out of its doldrums in the first half of the year.

"I think unemployment will continue to increase the first half of the year, but start leveling off by mid-year," said Domazlicky. "The immediate area here hasn't been hit as hard as other parts of Southeast Missouri."

Cape has fared well

Some areas may reach the 8 or 9 percent unemployment mark before things start getting better. "Cape may fare better, between 4 to 4.5 percent unemployment," he said.

Domazlicky said three things were beginning to happen that indicated the recovery: Corporate profits are recovering some; the ratio between inventory and sales are improving; and consumers are continuing to spend.

"Overall, I think we'll see a good year," said John Mehner, president and CEO of the Cape Girardeau Chamber of Commerce."

Cape Girardeau doesn't get the highest highs or lowest lows because of its location and diversity in manufacturing, health care and retailing, said Mehner.

"But there have been some challenging things here this year," he said.

Some people are out of jobs, but Larry Dillon, Dana Corp. manager, doesn't think the area has been hit as hard as it could have been. "I feel that right now, the only way for us to go is up."

Dillon had some anxious moments during the past year. Dana Corporation's Spicer Axle Division plant in Cape Girardeau was among five plants evaluated by the company for closure. The evaluation has been completed, resulting in the shutting down of plans at Greensboro, N.C., and Syracuse, Ind. That leaves plants at Cape Girardeau, Jonesboro, Ark., and Fort Wayne, Ind., open.

Health development interest

Thomas M. Meyer with Thomas L. Meyer Realty Co. says 2002 could be a good year for real estate.

Meyer just completed a deal that could help the city's downtown area develop. The former Del-Farm property at Sprigg and William streets was purchased by the Maevers family, which operates the Save-A-Lot grocery store at the site. The family had been leasing the building with an option to buy.

"We're seeing some good healthy development interest in Cape Girardeau, especially in the mid-town area," said Meyer, a broker.

"We don't see any negatives," he added. "We are seeing a lot of positives."

Meyer cited some other examples: the proposed new federal building to be constructed in the midtown area, the university's expansion with a River Campus and the new housing development on the former St. Francis hospital grounds.

Some people are taking advantage of the lower tax rates, said Lucy Brindley, an U.S. Bank Corp. investment consultant at Firstar Bank. A lot of people are looking at their personal portfolios.

Some people are refinancing mortgages. "This can be a good thing," Brindley said. "It frees up some money to help the buying power and stimulate the economy."

rowen@semissourian.com

335-6611, extension 133