Economy remains steady

Vermont Business Magazine, Feb 01, 2002 by Hedbor, Eloise Roberts

The ripples from the recession and the September 11th attack are being felt in Lamoille County but, at least so far, the impact hasn't been too severe. Although employment has dropped at some companies in the past year, these changes are probably not directly tied to the economic slowdown. And many local businesses say tourists are continuing to fill the rooms and patronize the shops and restaurants.

Companies in this north central part of Vermont have not announced any significant layoffs, said John Sullivan, executive director of the Lamoille Count Economic Development Corp. But he acknowledges he does not see any big employment increases on the horizon either, from new businesses or from significant expansions. "Nothing of headline quality," he said.

"We haven't seen a tremendous number of large permit applications," said Michele Boomhower, executive direction of the Lamoille County Planning Commission.

But even without local layoffs, Lamoille County residents are certainly feeling the economic slowdown. From the layoffs at IBM in neighboring Chittenden County to the hiring freezes at companies small and large, the hot job market of a year ago has cooled very significantly.

In December, Vermont Department of Labor statistics indicated about 850 residents were looking for work in the Morristown-Stowe labor market area (total employed was 19,150, same as the previous year). The unemployment rate was 4.5 percent, compared to 3.4 percent a year earlier. Statewide the December unemployment rate was 3.4 percent, compared to 2.4 percent for December 2000.

Many Lamoille County residents commute to neighboring counties for work, and Sullivan said it is difficult to track specifically how layoffs outside the county are impacting local residents. Within the county the vast majority of businesses employ 10 people or less.

Some of the local employment reductions during the past year in the manufacturing sector reflect business changes that are not closely tied to the wider economy.

At Quality Controlled Stitching in Morrisville, current employment stands at around 50, compared to an earlier high more than 150. The company used to do a lot of contract work for Turtle Fur (www.turtlefur.com), another Morrisville-based business, but that company was sold last year to Nordic Gear of Rye, NY. Now QCS is branching into manufacturing its own line of clothing, Sullivan said.

Vermont Precision Woodworks (www.vermontprecisionwoodworks.com), another Morrisville-based company, has reduced its workforce in the past year, moving toward greater automation, particularly in the cutting process, said Sullivan. The company manufactures wood furniture, particularly bedroom sets, and the automation will help control costs, keeping its prices competitive.

Even in difficult economic times, Lamoille County has many assets to help it weather the challenges. The scenic hills and mountains, the challenging ski trails and family friendly resorts attract visitors throughout the year, and tourism remains a key part of the local economy. The lush woodlands provide the raw materials for many of the region's industries. The lakes and streams provide the stimulus for others. And increasingly, the Internet is helping businesses here connect with potential customers in many parts of the globe.

Concept2 (wwwconcept2.com), the world-renowned manufacturer of rowing machines and competitive oars, has made particularly adept use of the Internet, setting up on-line competition for those who use the company's rowing machines. Those participating in these virtual races come from around the globe - Sweden and Great Britain to New Zealand and the USA.

Concept2 marked its 25th anniversary in 2001. Based in Morrisville, the company was the first to introduce carbon fiber oars as an alternative to the old-fashioned wooden ones. Now, Sullivan said, the company is working on developing a "canoeing machine." The company has about 50 employees.

Drawing inspiration from the area's streams is Morrisville's Diamondback, Inc, (www.diamondbackflyrods.com). It employs 15 people making handcrafted graphite fly rods. Although its products are sold through retail stores around the country, fly-fishermen can explore the many sorts of rods the company offers right on the web site.

Matt and Renee Nadeau have just moved their microbrewery, Rock Art Brewery (www.rockartbrewery.com) from their Johnson home to a newly renovated facility in Morrisville. This move, said Sullivan, will allow them to increase production for a product that is gaining a considerable following among local residents and tourists alike. Their website describes their different brews and tells where people can enjoy their ales and porters.

Even the most traditional of occupations seem to find their way onto the web. The half a dozen sawmills that process lumber from the nearby forests do not generally maintain web sites, but a number of Lamoille County businesses specialize in producing custom wood products do.

They produce everything from furniture to building components and even entire houses. Vermont Furniture Works (www.vtfurnitureworks.com) in Stowe produces handmade, 18th and 19th century furniture reproductions and adaptations, including many custom built pieces. Ten people work here and the product is sold directly to the consumer.