TRAVERSE CITY -- Building commerce in the midst of a steep economic slide is no easy task, a challenge that scores of companies and small business owners in northern Michigan know all too well.
For technology consultants like Timothy Gillen, it means helping clients upgrade existing data systems while they delay major equipment upgrades.
And contractor Chris Wood's company keeps busy installing high-efficiency furnaces to help deal with a dramatic downturn in the new construction sector.
Gillen and Wood were among hundreds of area business representatives who gathered Tuesday for an annual economic forecast and business expo sponsored by the Traverse City Area Chamber of Commerce. Attendees packed the Grand Traverse Resort & Spa in Acme to share strategies, promote themselves and look for ideas to generate more traffic in a stormy business climate.
"One of our jobs is to help our clients save money. That's really a priority right now," said Gillen, president of Terrapin Networks in Traverse City.
Companies are putting off major purchases with more focus on improving efficiency, meaning his firm is placing more emphasis on software upgrades, repairs and maintenance, he said.
Chamber business analysts said northern Michigan continues to feel the effects of the state's lengthy, stubborn recession. Total employment in the 5-county area dropped 2 percent in the last year and dipped below the 100,000 mark for the first time since 2005, said Matt McCauley of the Northwest Michigan Council of Governments.
State employment in that period is down almost 10 percent, he said.
"As a state, we never left the 2001 recession," McCauley said. "It's a very serious situation."
But the region offers unique assets that could help reverse economic trends. Economist Patrick Anderson, a former state budget official, said northwest Michigan's unique aesthetics, affordable living and other quality-of-life features can lure a talented workforce and cutting-edge companies in search of a home.
"Northern Michigan is a great place," Anderson said.
Other bright spots include the region's hospitality and leisure sectors, and local agriculture continues to grow, McCauley said. The area can expand its professional and business service base, which lags behind other areas in Michigan.
Problems remain in sectors like manufacturing, and McCauley said the housing market's collapse had a "profound" impact on regional construction. Those two areas shed more than 4,000 local jobs over the past four years.
That's forced businesses that rely on those industries to shift gears.
"New construction for us has dropped off dramatically," said Wood, who works at Team Bob's Heating, Cooling and Plumbing, of Traverse City. The company is finding new work installing high-efficiency furnaces and boilers in existing homes and businesses, and promotes indoor ventilation systems to improve home and workplace air quality.
Gillen and others at the expo expect the local economy to begin to rebound in 2010, but keep expectations in check.
"It definitely feels like there's a shift in a positive direction," he said. "Nothing drastic, but a shift."
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