WCAX.COM Local Vermont News, Weather and Sports-Economist Predicts Recovery in 2011

Economist Predicts Recovery in 2011

St. Johnsbury, Vermont - June 22, 2009

Elaine Perry says she's happy to have a job, even though her hours and pay at St. J. Stitching have been cut.

"We've had a lot of layoffs, off and on," she said. "I was off for three months once. That was a little tough, but we're working at least four days a week now, which is good."

Owner and CEO Joel Howard says business is down 60 percent since last year. That has forced him to take some drastic measures stay in business. Besides cutting hours and pay, the company has cut about half of its employees.

"We've had to reduce our workforce from about 45 people down to 20, 25 people, and those are only working a four day week," he said.

Cuts are not the only tactic; Howard says he also is changing his marketing strategy to bring in new business.

"We've never really had to do much on the sales end of it; word of mouth comes to us. That's how we usually get our business," he said. "But lately in the last five or six months we've had to search for new clients on our own and that's a new experience for us."

Economist Dick Heaps says a recovery may be on the horizon. He forecasts the recession would linger well into 2010, but sees an "earnest" job growth and a significant change in Vermont's economic fortunes beginning in 2011. He predicted that essentially all of the jobs lost in the recession would be regained by the end of 2012.

Joel Howard says a couple of new clients have given him hope the economy may be recovering.

"I think when it comes back, it will come back fairly strong," he said. "And I hope we're in a good position when it does. We'll still be here, I'm sure we will."

And Elaine Perry says she's ready to see these empty sewing machines occupied once again.

"It'll be nice to see all of our friends come back," she said.

Kate Duffy - WCAX News