By : Chelsey Levinsgton
Source : http://www.middletownjournal.com
Category : Small Business Grant
Auto repair shops, restaurants and other small businesses are responsible for the bulk of the job gains in the U.S. for the past six months, a strong signal of economic improvement, said area financial analysts.
Businesses with up to 49 employees have added more jobs per month than other size businesses since June of 2011, according to Automatic Data Processing Inc., a national payroll processing company.
Small businesses with 49 employees or less in the U.S. added 95,000 jobs in January, while businesses with 50 to 499 employees added 72,000 jobs. Large companies with greater than 500 employees added 3,000 jobs, according to ADP.
Local small and medium-sized business owners say they have waited to see strong demand before they felt comfortable hiring and are cautious not to overhire and be forced to layoff workers only months later.
The fact small businesses are gaining confidence is "extremely" important because small and medium-sized companies tend to have mostly domestic operations, experts say.
Also, there are more small businesses than large ones, and it shows a grassroots improvement in the job market, said Jim Russell, Cincinnati area regional investment director and senior vice president, U.S. Bank Wealth Management.
"Large companies usually have the ability to buy large equipment and to some extent, outsource their jobs to India or China or have their things made overseas. A small company does not have flexibility in that way. If they want to produce more widgets or some things, they're going to have to bring on more employees," Russell said. "I think it does indicate the economy is picking up and more widgets are being sold. Companies will not hire until their revenue is going to pick up."
The U.S. Bureau of Labor Statistics reported Feb. 3 total nonfarm employment, which includes the private and public sectors, increased by 243,000 in January, the fifth straight month of national job gains. Ohio added 38,300 non-agricultural jobs in 2011, according to Ohio Department of Job and Family Services. Butler County also saw its employment grow by 4,000 in 2011.
Pfefferle Tire and Auto Service, with Hamilton and Fairfield locations, hired four people at both stores in the past three months and now has 16 employees, said President Chris Pfefferle. That’s back to the same number of employees the small family business had in 2010 when it opened its Main Street Hamilton location, he said.
Last November, the auto service repair shop lowered its prices, which increased its demand, he said.
"We had to grow our business to a point to be comfortable to bring employees on. Just the market as a whole, it's all a numbers game. We got to the point where our numbers were in a good situation," Pfefferle said. "If we hire someone, we want it to be a permanent thing."
Akers Packaging Service Group of Middletown is one of the larger independent corrugated companies in the U.S., said Plant Manager David Wilson. It makes corrugated containers, such as cardboard boxes. The Lefferson Road Middletown location is the largest of its 10 locations and has approximately 150 total employees.
Also a family-owned company, Wilson said it has always used a measured growth strategy. It uses temp-to-hire, normally working temporary employees for three to four months before it considers hiring them full-time, he said. Akers Packaging most recently hired two employees in December, he said.
Most of its hiring has been to replace retirements, he said. If it sees extra orders, it usually uses overtime work.
"It'd be very easy to hire 10 or 12 and then lay off six or seven. We prefer not to go in that direction. We believe when we hire people we have the intent to go for the long haul," Wilson said.
The economy did not force the company to downsize. Recent years have actually been some of Akers’ best because its customers are in growing industries such as food, clothing and Internet sales, he said.
"I do think people today have become more reluctant to hire people only to lay them off. I think people have tried to be more efficient to only bring in people that they need. I think they’re being much more conservative than they were five or six years ago. I think there's a lot of wait and see... is this growth we’re seeing really long term growth?" he said.
Small businesses normally lead the economy in a recovery, said Michelle Laux, First Financial Bank vice president and senior portfolio manager.
The Cincinnati area's job gains in manufacturing - 8.3 percent from November 2010 to November 2011 - is proof, said Adrian Breen, First Financial Greater Cincinnati/Kentucky regional president. First Financial has found its clients are finding ways to do more with less.
Small manufacturers, for example, are picking up functions that large businesses used to do. A small company that makes a metal component and only makes that metal component can do it at a lower cost than a large company and do it for multiple large companies, Breen said.
"It follows the normal pattern that happens with recessions as you come out of the recession. You have the low interest rate environment and small companies can react and take advantage of this first," Laux said.
Russell said the U.S. economy has recovered approximately 2.5 million jobs since the recession ended in 2009, not nearly the 7.9 million jobs it lost during the 18 month recession. The national economy should add about 150,000 jobs a month just to keep the unemployment rate stable because of new people entering the work force and immigration, he said.
"I think it's going to take a long time to get down to a 5 or 6 percent unemployment. We think, I believe, the unemployment rate gently moves lower over the course of the year," he said.
Source : http://www.middletownjournal.com/news/middletown-business-news/small-businesses-take-lead-role-in-recovery-1327378.html
Source : http://www.middletownjournal.com
Category : Small Business Grant
Auto repair shops, restaurants and other small businesses are responsible for the bulk of the job gains in the U.S. for the past six months, a strong signal of economic improvement, said area financial analysts.
Businesses with up to 49 employees have added more jobs per month than other size businesses since June of 2011, according to Automatic Data Processing Inc., a national payroll processing company.
Small businesses with 49 employees or less in the U.S. added 95,000 jobs in January, while businesses with 50 to 499 employees added 72,000 jobs. Large companies with greater than 500 employees added 3,000 jobs, according to ADP.
Local small and medium-sized business owners say they have waited to see strong demand before they felt comfortable hiring and are cautious not to overhire and be forced to layoff workers only months later.
The fact small businesses are gaining confidence is "extremely" important because small and medium-sized companies tend to have mostly domestic operations, experts say.
Also, there are more small businesses than large ones, and it shows a grassroots improvement in the job market, said Jim Russell, Cincinnati area regional investment director and senior vice president, U.S. Bank Wealth Management.
"Large companies usually have the ability to buy large equipment and to some extent, outsource their jobs to India or China or have their things made overseas. A small company does not have flexibility in that way. If they want to produce more widgets or some things, they're going to have to bring on more employees," Russell said. "I think it does indicate the economy is picking up and more widgets are being sold. Companies will not hire until their revenue is going to pick up."
The U.S. Bureau of Labor Statistics reported Feb. 3 total nonfarm employment, which includes the private and public sectors, increased by 243,000 in January, the fifth straight month of national job gains. Ohio added 38,300 non-agricultural jobs in 2011, according to Ohio Department of Job and Family Services. Butler County also saw its employment grow by 4,000 in 2011.
Pfefferle Tire and Auto Service, with Hamilton and Fairfield locations, hired four people at both stores in the past three months and now has 16 employees, said President Chris Pfefferle. That’s back to the same number of employees the small family business had in 2010 when it opened its Main Street Hamilton location, he said.
Last November, the auto service repair shop lowered its prices, which increased its demand, he said.
"We had to grow our business to a point to be comfortable to bring employees on. Just the market as a whole, it's all a numbers game. We got to the point where our numbers were in a good situation," Pfefferle said. "If we hire someone, we want it to be a permanent thing."
Akers Packaging Service Group of Middletown is one of the larger independent corrugated companies in the U.S., said Plant Manager David Wilson. It makes corrugated containers, such as cardboard boxes. The Lefferson Road Middletown location is the largest of its 10 locations and has approximately 150 total employees.
Also a family-owned company, Wilson said it has always used a measured growth strategy. It uses temp-to-hire, normally working temporary employees for three to four months before it considers hiring them full-time, he said. Akers Packaging most recently hired two employees in December, he said.
Most of its hiring has been to replace retirements, he said. If it sees extra orders, it usually uses overtime work.
"It'd be very easy to hire 10 or 12 and then lay off six or seven. We prefer not to go in that direction. We believe when we hire people we have the intent to go for the long haul," Wilson said.
The economy did not force the company to downsize. Recent years have actually been some of Akers’ best because its customers are in growing industries such as food, clothing and Internet sales, he said.
"I do think people today have become more reluctant to hire people only to lay them off. I think people have tried to be more efficient to only bring in people that they need. I think they’re being much more conservative than they were five or six years ago. I think there's a lot of wait and see... is this growth we’re seeing really long term growth?" he said.
Small businesses normally lead the economy in a recovery, said Michelle Laux, First Financial Bank vice president and senior portfolio manager.
The Cincinnati area's job gains in manufacturing - 8.3 percent from November 2010 to November 2011 - is proof, said Adrian Breen, First Financial Greater Cincinnati/Kentucky regional president. First Financial has found its clients are finding ways to do more with less.
Small manufacturers, for example, are picking up functions that large businesses used to do. A small company that makes a metal component and only makes that metal component can do it at a lower cost than a large company and do it for multiple large companies, Breen said.
"It follows the normal pattern that happens with recessions as you come out of the recession. You have the low interest rate environment and small companies can react and take advantage of this first," Laux said.
Russell said the U.S. economy has recovered approximately 2.5 million jobs since the recession ended in 2009, not nearly the 7.9 million jobs it lost during the 18 month recession. The national economy should add about 150,000 jobs a month just to keep the unemployment rate stable because of new people entering the work force and immigration, he said.
"I think it's going to take a long time to get down to a 5 or 6 percent unemployment. We think, I believe, the unemployment rate gently moves lower over the course of the year," he said.
Source : http://www.middletownjournal.com/news/middletown-business-news/small-businesses-take-lead-role-in-recovery-1327378.html
