WESTBROOK – Economic activity begins to heat up, but it still may be a while before the recovery is felt everywhere.
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Every time John Chase goes out to the site of Presumpscot Estates,
where excavation has started on his 40-unit housing subdivision,
people passing through stop to talk to him about buying one of the
lots.
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“We’ve been very pleased with the activity. We’ve got reservations
already in place,” said the chief executive officer of Chase Custom
Homes & Finance.
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The interest in buying lots at Presumpscot Estates, located off
Cumberland Street in Westbrook, is just one of several signs around
the city that a turnaround in the economy could be coming soon. A
local real estate broker says houses are being sold more quickly.
Business at an appliance shop on Bridgton Road has picked up
significantly since the winter. The Sappi paper mill is bringing
back some of its laid-off workers, and a Westbrook-based job
listing Web site reports an increase in new positions posted.
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“There’s a whole different attitude I’m seeing out there,” Chase
said.
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Federal Reserve Chairman Ben Bernanke last month declared the
country’s recession “likely over,” but, at the same time, cautioned
that the recovery from it was still a while away. And while that is
a feeling shared by people in some sectors locally, early
indications in other sectors suggest that the local economy is
headed in the right direction.
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According to Jason Blais, director of business development for
JobsInTheUS.com, the number of Cumberland County job openings
posted on the site jumped from 533 in June to 1,375 in August. The
4,800 job postings statewide in August were the most the company
had seen since September 2008.
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Started as JobsInME.com in 1999, the company, which is based in
Westbrook’s Dana Warp Mill, has since expanded its site to serve
several other states.
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“We saw an increase in every single county, which we think is a
really, really good sign,” Blais said.
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Though Blais believes some companies will still have layoffs as a
result of the recession, the good news is, he said, some others are
now hiring.
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One of those companies is Sappi Fine Paper, which laid off more
than 20 employees at its Westbrook mill earlier this year and shut
down machines for two weeks at a time due to a decrease in demand
for its products. But now, the paper company says it’s ready to
start beefing up its workforce again.
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“Near the end of this month, we will resume a seven-day-a-week
schedule to one of our coated operations. We’ve also begun to call
back some of our hourly employees that were laid off earlier this
year,” said Donna Cassese, the mill’s managing director.
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Cassese said demand for the company’s release paper has risen
recently because its customers’ inventories were depleted. Paper
manufactured in the Westbrook mills is used to give texture to
shoes, clothing and car interiors.
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Cassese credits the fall fashion cycle for some of the increase in
demand, but bumps in auto sales cannot be discounted.
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Much of those sales increases can be attributed to the federal
“Cash for Clunkers” program, which provided incentives for people
to purchase new fuel-efficient cars. But that program ended in the
last week of August, and Wally Camp Jr., owner of Rowe Ford and
Hyundai in Westbrook, said his sales for September are higher than
they were last year.
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“I don’t think it’s going to rebound to the level of sales in
2007,” he said, but he expects to see “a gradual improvement” in
the coming months. Camp estimated that his company’s sales were up
about 10 percent from September 2008.
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At LP Furniture and Appliance on Bridgton Road, owner Ryan LaPierre
also said that, after a harsh winter for sales, the past season
wasn’t as bad as he expected.
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“Early spring started out better than I thought it would, and it
really hasn’t slowed down,” he said, adding that his numbers are
still far from what they were in previous years.
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The sale of the new appliances at the store, such as stoves,
refrigerators and washing machines, is largely dependent on new
homes being built, LaPierre said.
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From being out in the field, Marie Flaherty, an associate broker
with Prudential Northeast Properties in Prides Corner, said she’s
seen new construction perk up recently and has clients who are
looking to build their own houses.
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“People are considering new construction and that’s a good sign,”
said Flaherty, but it’s not the only one that’s indicating things
are changing in the real estate market.
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In Westbrook, Flaherty said, the average home is spending 90 days
on the market – 17 days less than it had been in August 2008. And
the number of properties for sale in the city that are currently
under contract is up 13 percent from the same time last year.
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But the trends in the real estate market still haven’t affected
everyone involved. Local construction companies say that they’re
not optimistic about getting more work any time soon.
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“I wish I could tell you we couldn’t wait for the winter to come
and go, so we could get back to work in the spring, but everything
I know and sense tells me the opposite,” said Mike White, owner of
White Bros., a construction company on Warren Avenue.
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White Bros. laid off more than 40 employees in December, which was
a deeper cut than the company usually makes when work dies off in
the winter. And typically, White said, the company brings back most
or all of those laid-off workers in the spring. But this year,
nearly half of them were still out of jobs during the past
construction season. In addition, he said, those who are working
aren’t getting any overtime pay, which construction workers tend to
rely on for income.
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Though White Bros. is one of the companies involved with the
excavation at Presumpscot Estates, that project isn’t doing enough
to make White optimistic about the future. Danny Shaw, owner of
Shaw Bros. in Gorham, feels the same way.
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“We don’t see it getting any better next year,” he said.
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Though there have been government-funded projects happening –
projects that are being done at what White called “ridiculously low
costs” – it’s new residential and commercial projects that the
construction companies are lacking.
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“We need more private work,” said Shaw. “Nobody’s expanding.
Everybody’s on hold.”
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One large private project that would bring hundreds of temporary
construction jobs to the area is Stroudwater Place, the
$300-million, 1.65-million-square-foot high-end retail and
recreational development proposed for Stroudwater Street.
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But developer Jason Snyder said construction companies shouldn’t be
expecting to bid on the project any time soon. When a contract zone
for the project was approved by the City Council last December,
Snyder predicted he would be coming back to the city with a site
plan in less than a year and half.
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Plans to move forward with the first phase of the project are
already behind by nine months, Snyder said, and he expects the
progress to continue to be pushed back several more. Even though
the timing’s off, according to Snyder, the plans themselves haven’t
changed.
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“We’re holding course,” he said.
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According to the U.S. Census Bureau, retail sales in August were up
2.7 percent from the previous month. Though much of that increase
was in the auto industry, when broken down into different retail
categories, across-the-board sales are leveling out or showing
slight increases. From July 2008 to August 2008, in most
categories, there were much more drastic decreases in sales.
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These slight signs that things are changing may not be enough to
get a project like Snyder’s moving, but on a smaller scale the
difference is noticeable.
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During the economic downturn, one of the first places people cut
spending was on the little extra luxuries in life, including
expensive beauty treatments like facials and manicures. But people
still needed to get their hair trimmed, which led them to places
like Cosmotech, a cosmetology school on William Clarke Drive, where
they could do it on the cheap.
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“A lot of people were coming here because they didn’t want to pay
$60 for a haircut,” said Kelsey Collins, who attends the school,
where low-cost beauty treatments are performed by students as part
of their education.
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But Ilean Cavallaro, owner and director of Cosmotech, said the
school didn’t escape the effects of the recession. She said there
was a deep decline in enrollment for the school, which costs
$15,500 to attend. It was in July that she said more people started
signing up again. Now, there are about 35 students enrolled. In
better times, she has about 50.
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In addition, Cavallaro said she’s noticed more people buying
products, like shampoo, that are sold at the school, which
contributes to a sense she’s been getting about the economy on the
whole.
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“I think things have changed,” she said. “I feel a difference.”
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A White Bros. truck turns out of the construction site of Presumpscot Estates on Cumberland Street in Westbrook. Developer John Chase says there’s been a lot of interest in his 40-unit housing subdivision, which he believes is a sign of the changing economy. Mike White, owner of White Bros., however, isn’t so optimistic about the company picking up much more work in the coming year. (Staff photo by Leslie Bridgers)Kelsey Collins practices straightening the hair of Alex Hudspeth, her fellow student at Cosmotech, a cosmetology school in Westbrook. Ilean Cavallaro, owner and director of the school, says enrollment had dropped during the past year but has picked up again in the past couple of months. (Photo by Leslie Bridgers)
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