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The Economic Impact on My County

mixin

Well-known member
We made it into the big papers last week. Sad....
This article is telling it like it is (I cut some of the political comments out). The rv industry hasn't even hit its winter slow-down yet so there's more to come. I also read somewhere our unemployment funds are tight. The metal scrappers are stripping vacant houses of metal and copper boldly in daylight hours. Our county usually thrives but when gasoline skyrocketed, the recreational vehicle industry took a huge hit. We make a lot of manufactured houses, too; and people can't get financing.
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At the heart of the U.S. economic meltdown, desperation
ELKHART, Indiana: To understand just how grim things have gotten in this northern Indiana town, consider a new law passed last month by the City Council that limits residents to one garage sale a month.

It seems the perpetual garage sales - which for scores of people in this town are a sole source of income, and for others the only source of clothing - were annoying some residents. The restrictions will make the financial pinch that much tighter.

"I have no other option," said Todd Baker, 34, who lost his factory job in July just before his wife gave birth to their third child. Friday was his last permissible day to sell old children's clothing, muffin tins, a fake white Christmas tree, stereo speakers and dozens of household items out of his garage.

"I've never missed a day of work in my life," Baker said. "Man, I'm shocked that I have to shut this down. My neighbors are usually out here, too. We've got regulars who are in the same situation, or lost their house, and when the bank took it, they took everything that was in it. I'm just trying to do as much as I can because the heat bills are going to go up 25 percent this winter, too."

Elkhart, near the Michigan border in an area known as Michiana, is the white-hot center of the meltdown of the American economy. Its main industries, the manufacturing of recreational vehicles and motor homes, have fallen apart over the last year because of high gasoline prices. That has taken down ancillary businesses like RV parts suppliers and storage warehouses.

The jobless rate in Elkhart has increased more than in any metropolitan area in the country; it rose more than 4.8 percentage points from August 2007 to August 2008. According to labor statistics released this summer, nearly 10,000 people were out of work, a rate of 9.3 percent.
"I'm just dwindling to the bottom," said Melinda Owens, 24, as she emerged from the unemployment office.

City services are on the decline, and holdups are on the rise - there were nine armed robberies or attempted armed robberies on convenience stores in the last two weeks. On Friday, the front-page news of the paper, The Elkhart Truth, was about a local plastic company that was actually not closing its plant.

The busiest spot in town seems to be the unemployment office, where 20 people stood in line on Friday and streams more passed through. Bryan and Christy Fisher were among them. The couple lost their house to foreclosure this year, then found one to rent; next week they will downsize to an apartment.

Bryan Fisher's job in RV production has been reduced to four days every other week. "For a family of five, this is a big deal," he said. "We have three kids, and two of them are in high school. We are hoping to find a way to send them to college, but you can't send a kid to college on eight days of work a month."

While it may be hard to find a consistent political opinion in Elkhart, it is not hard to find people in pain. Nearly every street seems to have a house for sale or rent. Storefronts are newly shuttered.

Masses of residents huddle outside the unemployment office, dragging on cigarettes and trading stories of companies that left, late unemployment checks, job leads that may or may not come to fruition.

"It's horrible here," said Alicia Egas, 26. "My fianc? just got laid off. We have four kids, and we're not getting any income except for his unemployment. Food stamps are not giving us very much, and we're behind on rent, we're behind on utilities, and those are threatening to get shut off. And of course it's impossible to get a job around here that makes any money. I'm stressed. We've never been this low.

McCrory was one of the last people at his plant to lose his job, on Sept. 11. "I was in the RV industry like everyone else," he said. "I'm a lot better off than most people because I planned. But I'm down here filing for unemployment so I don't take the last trip down the toilet bowl."

http://www.iht.com/articles/2008/10/12/america/indiana.php
 
Re: The Economical Impact on My County

Re: The Economical Impact on My County

Pres. Obama decided to pay my poor county a visit earlier this week in an effort to gain support of his stimulus bill. I'm not sure just how successful his plan was; he was well received. however.

Here is an article from USAToday; it's more of human interest story about what we're going through than what he actually said.

Here's a snip about Jayco: ELKHART, Ind. ? Derald Bontrager's mom and dad started the RV company he now runs with his brother in 1968. For nearly four decades, the family could hardly make pop-up campers, travel trailers and motor homes fast enough for their eager customers. Today, the once-thriving company is in a free fall.

In the past eight months, as gas prices soared and credit dried up, "the market just went away," Bontrager says. He and his brother have had to lay off half their workforce, more than 1,000 employees, including 250 last week. And he knows the men and women he sees in church and at the store won't be able to find other work.

"Wilbur (his brother) and I personally know many of these people," Bontrager says. "That's what stings the most, having to take away their livelihood."
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From the mayor of Elkhart: "People who have never had to ask for assistance are having to," says Mayor Dick Moore, a Democrat in this largely Republican area.

Unemployment in the city of Elkhart (population 52,000) has hit 18%, he says.

"That's a pretty tough number," Moore says. "People are hanging in there, but ? I don't think we've hit the bottom yet."

That's what keeps Bontrager up at night worrying about how to make sure Jayco, his Middlebury, Ind., company, doesn't have to be shut down.

"It's the uncertainty of the future," he says.
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Nawab Manjee: 24, who owns a commercial real estate company in nearby Granger, got four tickets on Saturday and promptly put a pair up on Craigslist, the classified ads website, for $1,000. He wants to use the money to help make payroll for his struggling company.

In the past 14 months, he says, "construction projects just stopped." Now, he can't sell or lease his buildings. He has cut his staff down to five employees, and they work only five hours a day. The occupancy rate for his buildings has gone from 85% to 26%.

"Things have gotten really, really bad here," he says.

He and some friends came up with another idea to make money off Obama's appearance: selling coffee and T-shirts outside today's event.

"Anything we can do to survive right now," he says.

Read more: http://www.usatoday.com/money/economy/2009-02-08-elkhart_N.htm#close-share-help
 
Re: The Economical Impact on My County

Re: The Economical Impact on My County

As a landlord, I've felt the impact of a failing economy for quite a while; although with the home heating bills going through the roof, cost of food going up, the high prices of gas... it was really hard to pinpoint one certain thing on which to lay blame.

Interestingly, at least for me, the one sure indication that things were going downhill has been my favorite car wash. This has been one of the nicest, cheapest car washes around. It's heated, has hot water and is inexpensive; $1.75 for a fairly quick wash and wax (no, it's not a drive-through). In the summer, people are lined up 3-4 cars deep.

Early this fall, after a rainy dreary week, we had a beautiful weekend. I went by the car wash and the place was virtually empty; and I was shocked. I guess I never noticed a dwindling business; although there must have been. Then I started paying attention and the business had dropped off so radically, I could barely believe it.

Last week, I noticed white barrels in front of the bays and thought there had probably been some water damage due to the severe cold spell we had. So today I decided to wash my truck and everything inside the bays is gone... the hoses, wands, the brushes, the radiant lights, even the mat clips on the walls. Maybe the owner went out of business and took all the parts; or some thief came along and stole everything; but now it's just dark and deserted.

It's just really sad to watch my once thriving area go through this.
 
Re: The Economic Impact on My County

Very sad stories. We have not had unemployment rise so much here, but people are certainly feeling the pinch. Many businesses are hurting, most are laying off.
 
Re: The Economic Impact on My County

Since summer arrived, our local economy has picked up a bit. I think the last unemployment figures are at 17.5% +/-. This is not good; I think all this is showing is a slight increase in seasonal jobs.

As a landlord, I always thought the Section 8 housing program would be the best guarantee of filling vacancies. This is a govt subsidized program where the tenant pays 1/3 of their income towards rent and Sec 8 pays the rest. LL have to jump through govt hoops but rent is a sure thing... until now.

Apparently HUD has decreased funds to the Goshen Housing Authority and they are now trying to cut corners. One of the ways they decided to do this by just not paying some of the Sec 8 landlords. This was almost unbelievable unless you've dealt with some of the HA people:
"The method for determining which landlords were paid and which since May when the money problems were determined was not scientific, Brenneman said. "We just selected enough to get those dollar amounts. There was no rhyme or reason."
Apparently GHA people haven't heard LL in Elkhart County are suffering financially along with everyone else.
Link to the article http://www.etruth.com/Know/News/Story.aspx?ID=486336

I was talking to a neighbor in Elkhart who has always done odd jobs for LL. He said there were no jobs to be had and he was going to the local church for meals. We have a large Mexican population and he said surprisingly, the majority of the people at the church lunches were Mexicans. His comment was: When they aren't working, you know there aren't any jobs. He also mentioned the lack of tenants and the methods a couple of the LL were using to get and keep the ones we do have. One of our most prominent/successful LL lost all their houses plus their personal residence. I knew they had lost some but not everything. How sad.

I didn't realize how many vacancies there are in Elkhart until the grass started growing (and didn't get mowed). That's a real eye-opener. The mayor is on a rip about mowing lawns and maintaining properties; I guess he doesn't want people to realize just how bad off the city really is.

MSNBC started following Elkhart some time ago with a series called "The Elkhart Project". They have just run an interesting article: "When jobs go, so do a city's people" about how we parallel in many ways with Youngstown, Ohio.
http://www.msnbc.msn.com/id/29883955
 
Re: The Economic Impact on My County

Not only did my county rank high for unemployment this year, we now are also ranked #1 for having the most meth labs in Indiana. A methamphetamine lab discovery near Bristol last month was the 57th lab recovered in Elkhart County this year; last year, we were 2nd with 65.

http://www.wsbt.com/news/local/49033821.html This article discusses some of the reasons; 1 being that we have made many big Mexican drug busts and 2 being that many of the addicted are now unemployed and are making their own because it's cheaper and easier... due to a simpler method of cooking. The "one pot method" can be made in a backpack.

Meth houses are just about a landlord's worst nightmare due to the high cost of clean-up. There are very few companies here who do meth clean-up and it can run into thousands of dollars. I know one landlord who just tore his meth house down because the cost was so high. The laws hold the owners responsible and I'm not aware of any financial help from the govt here to deal with the problem.

MSNBC just put out a great article discussing the health and financial problems associated with living in a meth house that hasn't been cleaned. It's really sad to see people so sick and financially ruined due to meth labs.
http://www.msnbc.msn.com/id/31901354/ns/us_news-the_new_york_times
 
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