A bicycle manufacturer lays off five workers.
A car salesman postpones retirement.
Layoffs, shorter hours and struggles to pay bills
perhaps the new president, would bring relief.
business down, he fell behind in his electric payments
cut hours for his four workers
wife to help and started working part time
There were days where you almost feel like you want to close the doors and walk away and say, “I can’t do it anymore.”
A couple of my suppliers cut me off.
pay cash whenever I can
I’m hoping that we get some support from Washington for small businesses. Just the way that they’re supporting the big corporations, maybe they could help out the little guy.
lost almost 20 pounds in the last two months worrying about how to save his business.
sales have plummeted as nearby firms have cut jobs and reduced or eliminated food allowances.
Last month, it was down 35 percent. This month, it’s going to be more,
They are really cutting down and they’re cutting down big.
The price of oil went down, but all of my prices are still up.
let one guy go, so far.
we are trying to save the business.
Me and my wife came to the conclusion that we should take a smaller place, just me and her and a dishwasher, like when we started out.
orders from automakers and their suppliers have “basically dried up to nothing.”
Nobody is buying anything at this point
austerity budgets
plant close-downs and layoffs
definitely trickled down to us.
cut our factory hours fairly significantly.
retire
had to lay off
cut hours
pretty devastating effect on our workers and on our company.
when the spring comes, and hopefully there will be improvement in the business climate.
never seen business this bad.
General Motors, stopped offering lease-sales deals
restricted spending.
returning their cars
It’s very dispiriting.
fewer customers coming in
across the industry
down by half to two-thirds.
retirement fund has contracted somewhat
We go out to dinner less.
planning to travel less frequently
business will be off more next year than she predicted two months ago.
eliminated part-time positions
delayed seeking a line of credit
we lost was the domestic tourist
fewer tours running
We haven’t made a lot of cuts yet.
cut some of our weekend staff
growth will happen maybe after a year from now
I’m sleeping differently at night. My stress levels are a little bit higher.
In October, he said his work had been down 50 percent from last year.
slow. The phone doesn’t ring much.
I’m one of the lucky ones who’s still working.
not getting big jobs
small ones here and there, from people I know.
“I have two weeks and that’s it.”
“Take whatever you can get because it’s so tough.”
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As Crisis Spreads, a Pinch Becomes a Squeeze
A restaurant owner contemplates moving into a smaller space. A bicycle manufacturer lays off five workers. A car salesman postpones retirement. In October, The New York Times began tracking how six small businesses were handling the recession. The holiday season seems to have provided little relief: Layoffs, shorter hours and struggles to pay bills were common refrains in recent interviews conducted by Ken Belson, Brent McDonald, Patrick McGeehan and Erik Olsen.
But there was also some hope that the new year, and perhaps the new president, would bring relief. The Times will continue to follow the six businesses in 2009.
Making Ends Meet
Michael Menna, 46, is the owner of Menna’s Quality Meats and Salumeria, his family’s 50-year-old meat market in the Throgs Neck section of the Bronx. With business down, he fell behind in his electric payments, and Con Ed demanded about $6,500 as a security deposit. He has cut hours for his four workers, asked his wife to help and started working part time as a D.J. to help pay bills.
There were days where you almost feel like you want to close the doors and walk away and say, “I can’t do it anymore.” But that’s not an option.
Been doing this myself with my family for 37 years, and my father and my uncle for over 50 years. This is what I know, and I have a family to support.
A couple of my suppliers cut me off. I’d been trying to pay cash whenever I can. So that was one of the most difficult things that I’ve been facing right now. They have to pay their bills as well.
Con Ed decided to give me a bill for a large sum — a security deposit — which kind of messed up the whole ballgame. So they threatened to shut my electric down. I actually borrowed some money from family and gave them some money.
You lie in bed sometimes wondering how you’re going to get through the next day and make sure everyone gets paid. That’s one of the big issues. How are you going to make the mortgage payment? How are you going to make the Con Ed bill? How are you going to pay your kids’ tuition?
I’m hoping that we get some support from Washington for small businesses. Just the way that they’re supporting the big corporations, maybe they could help out the little guy.
I was a musician for about 25 years. If things get any worse, I’m ready to put the band back together again and get back on the road.
Feeling the Pinch of Wall Street's Slump
Mouhamad Shami, 54, the owner of Alfanoose, a Middle Eastern restaurant on Maiden Lane in the financial district, says he has lost almost 20 pounds in the last two months worrying about how to save his business. Mr. Shami said that his sales have plummeted as nearby firms have cut jobs and reduced or eliminated food allowances. He is considering moving Alfanoose to a smaller space and releasing most of his staff.
Last month, it was down 35 percent. This month, it’s going to be more, I can tell. Usually at lunchtime, there is no place to sit. On delivery, dinners, we’re hardly doing anything. They are really cutting down and they’re cutting down big. If the company’s not paying for their dinner, they’re not going to spend $20. They can get a slice of pizza for $3.
The price of oil went down, but all of my prices are still up. What they are waiting for? Leg of lamb, it’s still the same price. Beef, Angus, it’s still the same.
Everybody tells me they are down, even the pita bread guy. I used to get three cases a day. Now I buy for two days and I skip a third day. I keep what’s left in the freezer. Last week, I called him, I said, “Don’t send me for two days” because our freezers, they were full.
I did have to let one guy go, so far. One who was full time and one who was part time. My wife is back to working full time because we are trying to save the business. This year we didn’t get no catering for the holidays, for Christmas. Last year, there was no limit.
Me and my wife came to the conclusion that we should take a smaller place, just me and her and a dishwasher, like when we started out. I noticed that there are lots of places that are empty and nobody’s renting. It’s going to hurt me if I have to leave this place. The woodwork, I did it all myself. I’m very proud of it.
Scaling Back Staff
Wayne Sosin is the president of Worksman Cycles in Ozone Park, Queens, a 110-year-old shop that produces heavy-duty bicycles and tricycles used in warehouses and factories. In October, a manager at the company was worried about rising costs, but confident that sales would remain strong. But orders from automakers and their suppliers have “basically dried up to nothing.”
During the summer, our business was so busy that for a while we were actually unable to fill orders that people wanted to place with us. In September, I would have said, “Business is wonderful,” because people really like what we were doing. Our products were a good alternative to gas-guzzling vehicles.
Nobody is buying anything at this point because their factories are on austerity budgets, you know, a lot of plant close-downs and layoffs. You know, that’s definitely had a ripple effect and it’s definitely trickled down to us.
We actually had to cut our factory hours fairly significantly. Now keep in mind that we were coming off a high level of employment, based on the level of demand we had had. So we had a larger staff than normal. But we’ve had two people retire. And we’ve had about four or five people that we’ve had to lay off. And we’ve cut hours for other people. So yeah, it’s had a pretty devastating effect on our workers and on our company.
I’ve been here since 1979, so I know firsthand how to deal with some bad economic conditions that have a negative impact on the business. But this is one of the cases where small is beautiful. As a small business, you can react to the times, to make sure that you can get through rough times and you’re well positioned for the good times. That’s the strategy we’re going to take through this winter. You know, let’s get through this winter, do what we need to do to make sure we’re in a good position when the spring comes, and hopefully there will be improvement in the business climate.
Frozen by the Credit Markets
Lawrence Vayda, 65, a sales consultant at Parkfield Saab in Rochelle Park, N.J., has been selling cars for 17 years — the last four at Parkfield Saab — and says he has never seen business this bad. Two months ago, he had trouble making sales after Saab’s parent company, General Motors, stopped offering lease-sales deals, causing customers with maturing leases to return their cars. With G.M. facing bankruptcy and his job in some doubt, Mr. Vayda has restricted his spending.
Things are no better going forward than two months ago. Two or three customers a day are coming in and returning their cars and going to another maker.
Once they are in a different brand, they’re gone. I saw a guy who was on his fifth Saab; he’s moving on. It’s very dispiriting.
There are fewer customers coming in, but it’s not specific to us. It’s true across the industry right now. Showroom traffic is down by half to two-thirds.
When the credit markets unfreeze and when there’s some sort of stability in the auto industry, you’re going to see a big spike in new car sales because I think people are holding on to their cars for a little longer.
My wife’s retirement fund has contracted somewhat, mine has contracted somewhat. We were going to retire this year, but we’ve put that off a year until 2010.
I might have to throttle back a bit. We go out to dinner less. We’re planning to travel less frequently. Every three months, we would go to our home in Florida, or visit my daughter in Las Vegas or my wife’s daughter in Arizona. We’re not going out there this year.
Maxing Out Tours
Georgette Blau, 34, is president of On Location Tours in Midtown Manhattan, which gives bus tours of New York locations from popular movies and television shows, including “Ugly Betty” and “Sex and the City.” Though she says her holiday numbers have been steady, she thinks business will be off more next year than she predicted two months ago. She has eliminated part-time positions and delayed seeking a line of credit because the market is tight.
The first thing we lost was the domestic tourist, and that was sort of saved by the foreigners coming in, and then that recently changed with the dollar getting stronger.
I just think there’s a lot of uncertainty out there. People are not sure if they should come to New York or travel or save their money, if their jobs are going to be there down the road.
Through the first week in January is a very strong time for us. We do see those numbers are staying strong. A lot of people are coming to New York. They probably already planned trips to New York several months ago.
What we’ve really been trying to do is fill up our buses to the max, have fewer tours running but making sure that we’re maxing out those tours and filling up the seats. We haven’t made a lot of cuts yet. We’ve just cut some of our weekend staff, but we haven’t made staff cuts.
My worst nightmare would be to cut staff, because I feel a responsibility toward our staff.
I do feel that the growth will happen maybe after a year from now, and that we’ll be able to move forward. It’s just frustrating, because we just moved into these offices and we were hoping to immediately hire one or two people and to feel comfortable in these spaces. It’s just been a strange transition, being in a new office and with the recession and the uncertainty.
I find that I’m sleeping differently at night. My stress levels are a little bit higher. I’m trying to stay positive.
Staying Optimistic
Ruben Villasante, 46, is the owner of a small contracting firm, V & V Construction, that specializes in painting and home renovations in Ditmas Park, a thriving neighborhood in Brooklyn. In October, he said his work had been down 50 percent from last year. But he has orders for the spring.
It’s still slow. The phone doesn’t ring much. But I’m one of the lucky ones who’s still working.
I’m not getting big jobs, just small ones here and there, from people I know. People have things to be done, things that have to be fixed. They have to fix the stairs or patch a piece of the roof or fix a cabinet. That’s what happens in slow times. It goes into slow motion.
When the busy season starts in March, we’ll be busy. I was talking to other guys I know and one said, “I have two weeks and that’s it.” Another guy told me, “Take whatever you can get because it’s so tough.”
If they stabilize the market so it doesn’t go up and down, maybe in the 9,000s, it will give people a little security; that will help everybody. We haven’t seen the foreclosures in Ditmas Park. This is business and professional people; they’re not going to lose their job or house. So if the market gets stable, people will spend.
I have four workers, one is Irish and three Mexicans. I give them a bonus of one week’s work, and that won’t change. Looking ahead, it looks better than two months ago and it’s going to get better faster than what everyone thinks.Labels:
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