Published: October 01, 2009 09:22 pm      

Huntsville enjoying isolation from recession

While the recession continues to thwart business in most parts of the country, the businesses in Huntsville and Walker County have largely escaped the devastation, thanks to a solid employment base and small-town consumers who know when to spend and when to save.

According to Carol Smith, iterim president of the Huntsville-Walker County Chamber of Commerce, Texas as a whole has enjoyed relative insulation from the economic storm with cities such as Huntsville reaping the benefits of a fairly stable economy.

“I certainly think we’ve had a little bit of affect here, but not nearly what’s been seen across the nation,” Smith said. “People have been cautious with their spending and more careful with their saving. As a whole, I think we’ve done pretty well.”

Business owners in Huntsville owe much of their gratitude to the solid employment provided by state agencies, such as the Texas Department of Criminal Justice and Sam Houston State University.

Both entities employ a large percentage of the county’s residents and provide a reliable source of revenue for area families as well as businesses.

“TDCJ has been able to fill a lot of their vacancies because of people who might have been unemployed who were looking for something to bring in some income,” Smith said.

When employees know they can count on a steady income, Smith said, they are more likely to feel secure spending their money around town.

“I think because people feel pretty confident that they are going to have a paycheck, then they are able to spend those dollars as they need to,” Smith said.

“I don’t think we’ve seen people buy some of the larger ticket items, but the day-to-day activities — people still have to buy groceries, they still have to put gas in their cars and people enjoy eating out,” Smith said. “That certainly carries over and helps our businesses.”

Smith said she believes the fairly solid economy enjoyed by Huntsville can also be attributed to the small-town atmosphere and savvy spending by local residents.

“Our town is still small enough that people want to be here — they enjoy this environment. We are a nice-sized small town,” Smith said.

While the major impact of the recession hasn’t been as widely felt as in other areas, some residents and local businesses are feeling the pinch of higher unemployment.

According to Smith, Walker County posted a 7.7 percent unemployment rate this August while the state recorded a slightly higher rate of 8.1 percent.

During the same month last year, however, the county posted a 6 percent unemployment rate while the state recorded a lower rate of 5.3 percent.

“We’ve seen some businesses have to cut back a little bit, but I really don’t think we’ve seen any major impact on closings,” Smith said.

In a reverse of the national trend of foreclosures and shuttered businesses, Smith said Huntsville has enjoyed a a small surge in growth in both business and housing.

She noted the expansion of Weatherford International off state Highway 75 South, the raising of several local restaurant businesses on the northeast side of town and the introduction and expansion of a pair of auto parts stores.

She also referred to the steady trajectory of home sales across town as proof of the relative stability of the Huntsville economy.

As economists and business owners remain hopeful for a quick recovery, Smith said Huntsville-area businesses can continue to weather the storm by striving to offer those things most needed by consumers.

“People are concentrating more on needs than wants,” Smith said. “We’re a university town and those students especially are watching for sales and specials. Anything they can do to draw customers into their stores is certainly good.”