And so the recession lingers, according to business owners telling the Connecticut Business & Industry Association. But there is some parting of the storm clouds.
In CBIA”™s third-quarter economic survey, business owners are showing more optimism, with 27 percent expecting the national economy to improve. Last quarter, 15 percent registered optimism. The current state of optimism is a far cry from the 7 percent quietly raised a year ago.
As far as Connecticut”™s economy, optimism grew four percentage points to 12 percent and nine points higher than the 3 percent surveyed a year ago.
The survey, released last week, did find some gloom in regard to credit as 62 percent note they are seeing an increase in the number of customers making late payments.
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According to the survey of 346 business people, 51 percent said payments are 60 days overdue and 21 percent said payments are 30 days late. The remaining 18 percent said payments are 90 days behind or later.
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“The good news is business executives are reporting improvements and are optimistic about growth in their industries,” said Peter M. Gioia, CBIA vice president and economist. “And while the economy”™s downward slide appears to be slowing, the bad news is payments are being made late and credit is still tight. Until that turns around, we can expect more of the same.”
There are some bright items in the survey:
- 27 percent report their firms are growing, up from 18 percent in last quarter”™s survey.
- 29 percent said business has worsened, down from 33 percent last quarter.
- 22 percent expect improvements in their industry to continue, up from 14 percent.
- 39 percent anticipate declines, but that number too is down from 43 percent last quarter and a pessimistic 56 percent a year ago.
- 28 percent reported increases in production/sales, up from 25 percent.
- 35 percent said productivity numbers increased, up from 24 percent.
“While not great in historical context, these numbers show businesses are in the beginning stages of recovery from the worst recession since the Great Depression,” Gioia said. “We still have a long way to go.”
We agree the economy has a way to go, but the current crop of optimism is heartening.
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How”™d that happen?
Sometimes you never know what”™s in the envelope.
That was the case for the low bids that came in for the maintenance shop for Metro-North Railroad trains that run from New Haven to Manhattan.
How low were those bids?
How about $124,786,100, which came from O&G Industries of Torrington. That bid is less than half of the $291.5 million estimated for the 293,000-square-foot so-called “change-out” shop where the trains would be cared for.
According to plans, the facility will consist of a maintenance shop with 13 car spots on three tracks with overhead cranes and floor lifts. It would also contain repair shops, parts storage facilities, offices and training facilities, a security suite with command center and MTA police offices, DOT offices and a communications hub.
Site work for the building will include utility and track connections, roads, fencing and lights.
Gov. Jodi Rell said the low bid would save millions of taxpayer dollars.
That”™s a positive element in these days of raise taxes on everything.
Another positive aspect is that the construction will result in about 100 jobs, according to DOT Commissioner Joseph F. Marie.
The bid, if accepted after review, would result in construction to begin as soon as this winter.
To be off by $167 million is a bit intriguing.