Businesses see some improvements in economy

Date: 11/3/2009

By G. Michael Dobbs

Managing Editor



CHICOPEE -- Area businesspeople displaying goods and services at the 12th annual Table Top Showcase and Business Networking Event last week at the Castle of Knights had some mixed messages about the economy: while some have seen some recovery, it is still a challenging business environment.

Gail Sherman, president of the Chicopee Chamber of Commerce, told Reminder Publications there were 90 exhibitors this year, which set a record. This year's show was also notable as it was a collaboration between the Chicopee Chamber, the South Hadley and Granby, the Holyoke and the Westfield Chambers of Commerce.

She said that many of the participating businesses were at the show for the first time. The range of businesses went from insurance agencies, printers, transportation companies, publications, home health care to schools.

Corey Murphy, the president of First American Insurance Company in Chicopee, said insurance "is one of the industries a recession hits last." His firm has seen the impact of the downturn through their customers in the form of decreased sales and smaller payrolls.

He added that he believes while there is some "leveling off," he doesn't expect to see the economy make a dramatic turn-around soon.

Appearing at such business events remains important, he said. "You've got to be present no matter what," he explained.

Greg Pedersen, the vice president of sales for King Ward Buslines, said, "It's a battle every day."

2008 had been a great year for the company, he said, and 2009 "doesn't match up."

To remain competitive, the motorcoach company took the step of changing its fleet of buses. The standard model used by the company seats 57 people. Pedersen explained the company bought several older buses that have 47 and 45 seats and reconditioned them. This addition gave the company the flexibility of attracting smaller groups.

"We had to be innovative," he said.

Hal Beattie, the regional manager of the Chamber Insurance Program, is offering an insurance product that he said is growing in popularity: health insurance for a dog or cat.

He said that in a normal year spending on pets generally grows 13.9 percent. Even with the recession, the spending has increased, although only about five percent.

"When it comes to pets, people aren't skimping," Beattie contended.

The Massachusetts Chamber of Commerce has endorsed the pet insurance program Beattie represents and he believes it should be popular here in the Pioneer Valley as Northampton has more dogs per capita than anywhere in the country.

With the emphasis on "green" technology, officials at the Pioneer Valley Railroad and Railroad Distribution Services believe the company may be in a good position.

Paul Gendreau, the terminal manager for the Westfield-based company, said that rail offers fuel consumption five times better than trucks and a box car can hold about four times the freight a truck trailer can carry.

Currently business is "soft, but we've held our own," Gendreau said. He added that as the economy is recovering the company is seeing an upturn in business.

Michael Rennicke, the company's vice president and general manager, said that with the emphasis on saving fuel, the Massachusetts Department of Environmental Protection and the Environmental Protection Agency are both more interested "in what rail does."

Rennicke believes the future is greater collaboration between railroads and trucking firms. He sees more and more companies using rail for the long haul and trucks for shorter trips and noted that one of the biggest rail customers is UPS.

Although the trade show featured many established businesses, there were also newcomers as well. Carla Sampson of Holyoke displayed a number of her "Sweet Dreams Diaper Cakes," which she creates herself from disposable diapers and other products parents need.

She started her business after seeing a diaper cake at a baby shower and thought she could make a better one. She adds blankets, toys and other items to the "cakes." A cake with 50 diapers costs $39.99 and she will customize the cake per order.

She has been selling the cakes through her Web site -- www.sweetdiapercakes.etsy.com -- and is looking to increase her business.

She said the response to her cakes has been positive from customers.

"It's practical, but fun," Sampson said. "Everyone needs diapers."