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2016 outlook: Businesses optimistic but cautious

Business and economic leaders in Carbon and Schuylkill counties are cautiously optimistic about 2016. The effects of the Great Recession are waning, but uncertainties about the government have them focusing on strengthening, stabilizing and sustaining business.

Robert Carl Jr., president of the Schuylkill County Chamber of Commerce, said, "We don't have a great deal of confidence in the market, not enough to increase expenses and increase workforce."Recent government laws have increased costs to businesses, such as the Affordable Care Act and the Clean Energy Act, he said. Couple that with talks on raising the minimum wage and not knowing who will be the next president, and businesses feel a little uneasy when it comes to taking risks."Growth - do they want to do that? Absolutely. There's not a business leader that doesn't want to grow their business," Carl said.For now, Carl said, "Businesses are trying to be conscious of their operational costs."Carl said if the electricity costs skyrocket due to the Clean Energy Act, then expenses are going up for everyone. Similarly, if the minimum wage is increased, then businesses' costs increase."Businesses just don't have an endless pool of money," he said. "The only variable cost is how many employees you can have."Chamber of commerce and economic development corporations are focusing on strengthening businesses so that they don't have to let employees go."They want to be in business. They consider it to be a fiduciary responsibility and a moral responsibility to their employees," he said.On the positive side, the federal government has provided some tax assistance to businesses and the oil export ban was lifted, he said.Marlyn Kissner, executive vice president of the Northern Region Greater Lehigh Valley Chamber of Commerce/Carbon Chamber and Economic Development, said they, too, are working to strengthen and sustain local businesses through loan programs, tourism promotion, education partnerships, and public policy initiatives.Growing downtownKissner is excited about the new year. She said there is a national trend of people of all ages moving back into downtown areas."The focus is on walkability to jobs, as well as shopping and restaurants," she said.Kathy Henderson, director of economic development for Carbon County, said she has also seen an increased interest in the county."We are currently working with clients who are moving into our county from out of state. This is due in part to our central location to larger metropolitan areas and also because our cost of living is relatively low," Henderson said."Another draw is our natural beauty and year-round outdoor activities. With more and more focus on a healthy lifestyle, companies are looking for areas that can offer these attractions for their employees."Brian Hansbury, vice president of the Schuylkill Economic Development Corp., said there has been an uptick in the industrial real estate market, including warehousing, manufacturing and logistics."The Lehigh Valley and Harrisburg are seeing quite an abundance of activity," Hansbury said."That is working its way into our area."The area still has several industrial companies, but they are smaller with fewer employees.These jobs are highly mechanized and highly computerized, and the employees need computer, electronic and robotic skills, he said.One smaller industrial employer seeing an abundance of business is Structural Metal Fabricators Inc. in Palmerton. Susy Seifert, the office manager at SMF, said the company has a six- to nine-month backlog of orders."2015 was a great year and 2016 will be another great year," Seifert said. "We've seen a huge pickup in orders."Because of the recession, companies kept a tight hold on their profits.With an improving economy, they have begun to spend some of that savings and repair and upgrade their facilities."It's exciting," Seifert said.Marshall Walters, president of Architectural Polymers in Palmerton, said he's taking a cautious approach in 2016."The economic conditions are good, so I don't expect the new year to be bad," he said."It will be interesting."