Business

Here's a good bit of writing and reporting from Scott DeSmit on the pinch, if not outrage, from local business owners over the fee and tax increases in the new state budget.

Great lead:

The New York state budget will be enacted this week and you'd be hard-pressed to find anyone who isn't harboring thoughts of revolution.

The print edition includes a good breakout box of 19 increases hitting consumers and businesses.

Among the largest, up to 5,000 percent increase in cigarette taxes.  As Scott writes, you read that right: 5,000.

Jeff Heubusch, owner of Southside Deli on Ellicott Street in Batavia, said he already knows what he's going to do about the new fee. He's not going to pay it.

"I definitely won't carry cigarettes," he said. "The profit margin just isn't worth it. If I stop selling them, so what? Our main business is food."

Heubusch said he would have to pay $2,500 to sell cigarettes.

"We used to sell 150 cartons a week in the 1990s," he said. "Now, we're lucky to sell 20 a week. I'm sure there's a motive for this. I think what's going to happen is you'll find that instead of 50 places to buy cigarettes, you'll be down to two or three."

Read the whole thing.

Local dairy farmers are hurting, according to Dean Norton, president of the New York Farm Bureau.

Prices have plummeted -- because of decreased demand for dairy products at home and abroad -- while costs have increased substantially. 

Currently, milk is selling for $10.50 to $11.50 per 100 weight (about 8.5 gallons), while the cost of production is $15 and $16 per 100 weight.

Last year, milk sold for about $20 per 100 weight.

"The area economy stinks and it's a tough year," Norton said. "Receipts are down and individuals might be exiting the dairy industry."

Exports have dropped and domestic demand has been driven down as people eat out less during the recession, so there is shrunken demand for dairy products.

To help address the plunging prices, Cooperatives Working Together (CWT) has initiated a herd retirement program, which will help reduce the number of milk-producing cows and lower supply.  Bids must be postmarked by May 1.

Dairy farmers throughout the nation are hurting according to The Rural Blog:

“The number of dairy cows being sent to slaughter has risen by about 20 percent from last year, as desperate farmers cull their herds and sell at fire-sale prices,” Sue Kirchoff writes for USA Today. “Adding to the problem, banks are less willing or able to extend farmers’ loan payments amid the financial turmoil.” John Murawski reports for the News & Observer in Raleigh, "Several dozen dairy farms in North Carolina are expected to go under this year." (Read more)

The National Dairy Federation has called on President Obama to aggressively address the problem, or thousands of jobs could be lost.

“There are several reasons for the implosion: oversupply, falling export demand and continued high prices for supplies such as feed,” Kirchoff explained. “The dairy sector in the past has been less prone to huge price swings than other areas of agriculture, but that’s changing as the industry relies more on the markets and less on government programs.”

Agriculture Secretary Tom Vilsack announced a program to buy 200 million lbs. of nonfat dry milk surpluses for domestic low-income programs.

Neighboring Wyoming County is being especially hard hit by the downturn in the dairy market, according to a story by Tom Rivers.

The $60 million in reduced revenue is compared to 2008 prices, when dairies averaged about $17.50 per hundredweight. This year the prices are forecast to average $12.80 for the year. The prices are expected to climb above the current $11 level and top $14 in September, which is still below most farms' production costs.

The county's 47,970 cows, which outnumber the county's residents, produced $178.9 million worth of milk products in 2007, by far the most in the state.

"The market is saturated and these prices are likely to be with us until mid-summer," Norton said.

Batavia-based Graham Corp. announced new orders worth about $3.5 million for surface condensers to be installed in two oil refineries in India and South Korea and a fertilizer production facility in the United States.

The orders follow quickly another $5 million in sales for the company's ejector systems, according to the Democrat and Chronicle.

CEO James Lines said:

"While we expect the global recession and tight credit markets to continue to affect the pace and timing of new order placement ... we view the potential bookings pipeline favorably," Lines said. "We believe the long-term fundamentals supporting increased global demand for energy are solid."

This past week I got to live out the dream of every kid (and most adults) I know.  I got a tour of Oliver's Candies from manager Jeremy Liles.  He showed me all their products, machines and specialties.  He introduced me to his dedicated staff and explained what each one of them did and what made each one of them so valuable to the company and its success. 

With Easter being right around the corner I felt this was the best time to feature them here.  I was amazed by how many different sizes and shapes of Bunnies they offered.  From little realistic to cartoonish, solid and hollow and from little bite sized all the way up to nearly 4ft tall and topping the scale at 31 pounds.  They have chocolate shaped like sports equipment, tool sets, Champagne bottles and Dinosaurs.  Baskets galore, stuffed animals, keepsakes, cards and balloons which they even offer to deliver for any and all occasions.

Oliver's was started in 1932 by Joseph Oliver in his home which is still the main section of the current store.  In fact, the bedrooms now are used as offices upstairs.  He began making his candy and started by selling it at local gas stations and corner stores.  Joseph continued to grow and set up a retail space in his front palor, he eventually served as the first president of the RCA (Retail Confectioners Association). 

According to Jeremy, one of the interesting things he did was make all ingredients used in his candies public.  However, in what order, how much, and procedures belonged to the person.  He did share one creation of his with a company and they still follow it today.  To everyone who  has enjoyed an "Andes Candy", you can still buy the original created right here in Batavia.  The Hostess Mints made here are still the original recipe followed from years ago. 

Jeremy said that he constantly hears from people that have tried ones from other companies and state that they just aren't as good.  Jeremy says that after purchasing the company in 1998 he and his family made a promise to never change the quality or ingredients of any of their famous products.  They still buy everything they can locally to insure quality.  He also says they haven't raised prices in three years and there is no plan to in the near future. 

He stated, "People have come to expect our quality and high standards, we never want to disappoint them.  We love hearing the same thing year after year".  One of his favorites is someone coming in that hasn't been able to visit for a few years and after the first bite they are filled with joy and exclaim "just as I remeber it!" 

I know even in my family, whenever my parents return to Florida they, and Ed Arnold had better remembered to bring some down with them.  Jeremy said the only changes they've made to the store is the size of the shipping room.  By adding creating a web-site and offering world wide shipping during holidays even the larger shipping room over flows with boxes waiting to leave. 

He added the ice cream palor in 2001 and on a hot night the jammed parking lot is proof of just how good it is.

We all wish Jeremy and his family continued success.  Nearly everyone I ever spoke with has a cherished memory of Oliver's.  I myself have them and now I happily make memories with my kids.  If you visit there often there is nothing I'm saying you don't already know.  If it's been a while, it is just as good as you remember.  Oliver's is located at 211 W. Main St in Batavia. Phone them at 1-800-924-3879.  Check outt their web-site;  www.oliverscandies.com and see some videos or place an order.

(her's where I was going to insert some pictures. I'm unable to insert them at this moment. When my 13 yr old daughter gets home she can show her cyber-moron father what he's doing wrong)

A new national database designed to let consumers check on the health of regional banks shows the Bank of Castile in a relatively strong position.

According to the site, Castile has a troubled asset ratio of 3.4 percent, compared to a national median of 9.9 percent. The report also says as of December 2008, the bank had no loans more than 90 days past due.

You can check on all of New York's regional banks from this page.

M&T Bank, of Buffalo, which received $600,000 in TARP bailout money, has a struggling subsidiary. Manufacturers and Traders Trust Company has troubled asset ratio is 17.1 percent. It has more than $44 million in delinquent loans.

You can find out more about the Bank Tracker on the site's Q&A page.

Amidst a negative employment report, Genesee County is a bright spot, according to a story in the Buffalo News.

While the region saw unemployment reach a 25-year high, Genesee County actually added .09 percent in new jobs, the biggest increase of any rural or metro county in the state.

The rest of WNY continues to struggle.

“Across the board, we have a lot of weakness,” said John Slenker, the labor department’s regional economist in Buffalo.

The job losses were widespread throughout all portions of the local economy, with particularly steep declines at local factories, where more than 5 percent of the region’s manufacturing jobs have disappeared over the last year. But service-providing jobs also took a hit, with the loss of 8,400 of those jobs, from banking to retail and hospitality.

UPDATE: The Daily News, like WBTA, is reporting different numbers than the Buffalo News. The Daily reports that unemployment in Genesee County rose from 9 per cent to 9.5 percent.

Rep Chris Lee says he wants to help small businesses. His latest effort, announced in a press release today, is a tax break for start-up costs.  He co-sponsored the legislation with a Democratic congressman from Maryland.

Apparently, a small business can currently only write up $5,000 of its start up costs for tax purposes. Lee's proposal would bump the limit to $20,000.

That sounds good as far as it goes, but at a time when credit is tight for small business start-ups, is it really going to provide the needed stimulus for entrepreneurs? Just asking.

Click on "read more" to view the full press release.

Press Release:

H.R. 1552 endorsed by nation’s leading small business association: “Congressman Lee’s plan to jumpstart the small business sector of our economy is the right approach to getting our economy back on track.”

WASHINGTON – Congressmen Chris Lee (R-NY) and Frank Kratovil (D-MD) held a joint press conference call today to discuss bipartisan legislation they have introduced that would boost small business start-ups by expanding a critical tax incentive. This is one of two bipartisan initiatives Congressman Lee has proposed this month to jumpstart job creation and aid Western New York’s economic recovery.

Congressman Kratovil added: “The men and women who own and operate small businesses are the driving force behind job creation; employing half the nation’s private work force.  These entrepreneurs need encouragement and motivation to create jobs and spur innovation in these challenging times; giving them a start-up expense tax break will do exactly that. “

H.R. 1552 has been endorsed by the National Federation of Independent Business (NFIB), the nation’s leading small business association representing small and independent businesses.

Mike Elmendorf, state director of NFIB/New York, said in a statement, “Congressman Lee’s plan to jumpstart the small business sector of our economy is the right approach to getting our economy back on track.  His proposal to quadruple the start-up deduction will give thousands of small businesses the incentive they need to invest in growing their business and creating jobs.”

Last week, Congressman Lee joined with Congressman John Boccieri (D-OH) to introduce bipartisan legislation (H.R. 1545) to make the research and development (R&D) tax credit permanent. Unlike other proposals to make the R&D tax credit permanent, H.R. 1545 would also offer a bonus tax credit to companies who manufacture most of their products in the United States.


 

The "micropolitian" area of Batavia is one of the nation's fastest growing regions according to Site Selection Magazine.

This is the fifth straight year Batavia has received the designation.

On its Web site, Site Selection describes itself this way:

Site Selection's editorial mission is to publish information for expansion planning decision-makers -- CEOs, corporate real estate executives and facility planners, human resource managers and consultants to corporations. Our goal is to help the expansion planner do a better job.

Here's the full press release from the Genesee County Economic Develoment Committee

Batavia, NY…Genesee County and the Batavia Micropolitan Area has been named one of the country’s 10 fastest growing regions by Site Selection Magazine for a fifth consecutive year.  A Micropolitan Area is a census definition that describes a city of less than 50,000 people that serves as the seat of a larger geographical area like Genesee County.  There are roughly 600 Micropolitans nationwide.

The Batavia Micropolitan was first recognized in 2004 and ranked 7th in the nation.  In 2005, the region was named the 3rd fastest growing Micropolitan in the nation and the number 1 location in the Northeast.  Batavia made the list again in 2006 and 2007.  In 2008 the Batavia Micropolitan ranked fourth nationwide. 

Statesville-Mooresville, North Carolina was tops in the category, participating in 17 qualifying projects.  Daphne-Fairhope, Alaska tied with Tupelo, Mississippi for second with both completing 12 projects.  Batavia participated in 11 qualifying projects tying with Ottawa-Streator, Illinois for fourth.  The results were published in Site Selection’s March issue.

“Despite a changing economic and political climate in the state and nationwide, we were able to participate in 11 qualifying projects and again earn honors as a Top Micropolitan.” said CEO Steve Hyde.  “It’s an accomplishment we are extremely proud of and over the years the recognition has brought us national exposure and helped us increase our project volume.  It is an honor that we share with the entire community, including our local and regional partners and elected officials.”

WBTA will report on its 12:30 newscast that Lapp Industries Corp. in LeRoy is concerned about a proposed environmental clean up, which VP and COO Robert Johnson tells WBTA would cost more than it should.

If forced to pay for a $3.4 million price tag for the proposed clean up on the 80=acre site, the survival of the company would be put in jeopardy.

Johnson says 140 local jobs could be lost. He maintains the job can be done just as well for $1.4 million, which the company can afford and is willing to pay.

I'm really not a fan of the New York State Thruway. I don't like paying the toll, and it too quickly zips you past some of WNY's beautiful scenery. When I do drive it, I can't help but feel I'm being jettisoned down a pneumatic tube. There's not much to the right of me, and even less on the left. Just zoom, zoom past guard rails and weeds to my destination.

When my wife and I needed to drive to Massachusetts for a wedding last spring, we traversed nothing but New York's "back roads." Avoiding the Thruway added two hours to our trip both ways, but it was worth it.  We saw every rustic village along the way and ate in some nice locally owned restaurants, rather than cookie-cutter chains at Thurway rest stops.

As we drove along the 5 & 20, I thought what a great route -- the businesses should band together along the 5 & 20 to promote tourism. When I got home, I found this 5 & 20 Web site.

Kelly Rapone, over at the Genesee County Chamber of Commerce, is involved in a 5 & 20 promotional project and asked that I pass along a link to a survey the group is doing. If you take the survey you will be entered into a chance to win a $100 gas card.

So, take the survey, drive the 5 & 20, and support local and regional businesses.