Area businesses are optimistic on economy

Published 12:00 am Thursday, March 20, 2003

Some Austin businesses say the local economy is sheltered better than in larger parts of America. However, there's still the realization that local businesses may see a slight initial drop now that America has gone to war with Iraq.

Josh Diaz, the co-owner of Piggy Blues, said he can understand the reasoning why people may not eat out as much, at least in the short term.

"When 9-11 happened, it seemed like everybody stayed at home, glued to their TVs," he said. "So business might be a little slower in that respect."

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Diaz said there's some truth that Austin's economy won't have the wide swings as in other parts of the country.

"Being on the East Coast, they're probably going to be a little more jittery because of the stuff that's happened before," Diaz said. "Even though it's a thought in your mind, it really hasn't been a reality here because we're in the middle of the country."

The Bootery's Mike Schuster agreed, adding that it helps having loyal customers.

"We're very lucky with the customer base in this area, because our customers are very supportive of our local businesses," he said. "We're lucky where we're at, but it's still going to affect us some."

Still, there's some uncertainty on how consumers will react.

"My business is OK, but it could be better. I really don't know how it's going to affect us," Schuster said. "This has been so publicized that everybody's aware of it and what's going to happen."

Sandy Forstner, the executive director of the Austin Area Chamber of Commerce, said it's going to be tough for businesses to be completely unaffected now that an invasion of Iraq has begun.

"It definitely has had an impact on business," he said. "First and foremost, our business community, as well are our entire country, is behind our troops and the war effort, whether or not they agree we should go to war. It's a very interesting and challenging time."

Forstner said Austin's locale helps, in being able to absorb any possible economic blows.

"We're in a small community in the upper Midwest, we hope we're somewhat insulated," he said. "What will happen to the business community in the short term is that sales will be affected. People will be glued to their televisions sets and seeing what's going to be occurring. So in the short term, there will probably be less customers in the stores. People will be focusing every free moment on what's going on and hopefully with a successful conclusion, people can help by rebuilding our economy."

Dan Fields can be reached at 434-2230 or by e-mail at dan.fields@austindailyherald.com