Look back 2009: Recession fallout filters throughout the suburbs
Some of the biggest stories of the year involved the U.S. economy, and how it all hit us at home. Job losses. Pay cuts. Retail slowdown. Mortgage and foreclosure crisis. Local suburban governments streamlining.
Simply put, the recession hit Main Street really hard.
The Daily Herald's Business Panel, including people from all walks of life from around the suburbs, took a look back over 2009. Here are their thoughts about the biggest stories to affect the suburbs.
"I think the biggest effect on suburban business this year, overall, was uncertainty, specifically about availability of credit and the costs/ramifications of impending health care reform. I know personally of at least three office building owners who can't fund construction costs needed to land new tenants, because they can't find credit in the market. I also have several clients in the health care insurance business, and they've been in a state of paralysis regarding hiring, office lease renewals, etc. pending a resolution of the health care reform debate. There were other major issues as well, but these two issues seem to be the biggest contributors to hesitation on the part of suburban business owners."
- David Ven Horst of St. Charles and partner at Tenant Advisors Inc., Schaumburg
"The state of the financial lending market has had the most profound effect on local businesses this year. The impact is two pronged, with lending restrictions on the residential housing market, business owners are unable to reduce their personal debt to withstand the sharp drop in consumer spending within their businesses. This, coupled with their inability to obtain or restructure their commercial debt, has forced businesses to make very difficult decisions, from reducing staff to closing shop. These are long standing, established businesses that have been a part of the community and have a bottom line impact on our suburban infrastructure.
"The commitment from the government to open up commercial lending for small businesses has not translated from policy to practice. In order to meet the governmental lending guidelines, the banks are restricted in their ability to provide loans to the very businesses that will maintain and grow the economy. Until small businesses have access to financing they will be challenged to grow, much less survive."
- Lynda W. Reilly of Naperville and president of Lynmar Lending Group Inc., Naperville
"The biggest story of 2009 has been the magnitude of unemployment in the small business sector. Unfortunately we all read the headlines about the total unemployment at the state and national level.
"However, there has not been much focus on the small businesses that have been reducing employment locally. These are the employers that will lead the way in an economic recovery; we need to put additional emphasis on helping these businesses recover."
- J. Patrick Benton of Naperville and president of Frist Community Bank, Naperville
"To me the biggest suburban business story of 2009 was the severe impact the recession is having on local governments.
"Arlington Heights has been forced to raise property and utility taxes, Schaumburg is imposing their first property tax, countless others are cutting staff and services.
"A lot of small harmful changes add up when times are tough. And money taken out of our pocket is not going to local businesses."
- John R. Herman Sr. of Arlington Heights, retired tax negotiator
"There are quite a few things that happened this year. In communications, Motorola Inc. came out with a new cell phone product called the Droid that I think will be successful. Perhaps it will help this company, since it's been hurting for a while.
"Also, the unemployment rate has been very high this year, especially in different cities around Illinois. Unemployment is certainly on everyone's minds these days. People are very concerned because we need jobs here. Many families have been affected, with someone who has been laid off.
"Retail also has been struggling this year. But when I went to Woodfield Mall, it was just packed. I was walking around there and everyone seemed to be buying something. So I'm not sure how this holiday season will go, but I believe their retail sales must be up.
"In addition, I just came back from a 10-day trip to China. They talk about the relationship between China and the United States, well it's quite a different world there. They're all working. They love American dollars. The economy there is just booming and they're all driving cars. But wherever you go here today, our products are made in China. Pick up an American flag, and that's probably made in China, too."
- Raymond E. Wright Jr. of Palatine, professor at Roosevelt University in Schaumburg.
"I've been too busy trying to survive the economic meltdown this year to pay attention to much that is going on locally, so the biggest suburban, urban, national and international business news story of the year is clearly the economy. A close second is national health care reform. If we don't get health care reform in 2010, the biggest story will be all the companies terminating health care coverage for their employees in order to survive and compete.
"What had the biggest effect on suburban businesses this year? Again the economic crisis. My wife and I were at a very good Vietnamese restaurant Sunday night. The waiter told me they had no customers the night before - a Saturday night. They had to throw out a lot of food. That's shocking!"
- Scott Siegel of Evanston, president of R.S. Owens & Co. Inc., Chicago
"I think the biggest suburban business story has been the fallout from the recession. Local private and public institutions have had to adjust to a new economic reality that is changing daily.
"In High School District 207 where I teach, our administration is dealing with a structural deficit that is the direct result of lower than expected tax revenues caused by the recession. Our district has been known for conservative fiscal management, but even historically healthy districts like ours have to make some very difficult choices in order to bring expenditures in line with revenues. "
- John Schwan of unincorporated Kane County near Elgin, teacher at Maine East High School