Business leaders in Duluth, MN, see signs of economic recovery

As the Dow Jones Industrial average hit 10,000 points Wednesday for the first time in a year, boosting hopes for an economic recovery, some are seeing signs that one is already under way in the Northland.

“In the trades, we’re having a mini recovery,” said Jim Stebe of the Duluth Building and Construction Trades Council, noting that the DECC and Duluth schools construction projects are putting a lot of people to work. And the Mesabi Nugget plant near Hoyt Lakes also is a major boost for the trades.

“Mining’s going back to work in a big way,” agreed Drew Digby, regional labor analyst for the Minnesota Depart-ment of Employment and Economic Development.

Stebe and Digby were among those interviewed at Wednesday’s annual Duluth Area Chamber of Commerce meeting and dinner at the Duluth Entertainment Convention Center. About 1,030 members and guests attended.

“There’s a lot happening around town,” said Jeff Schiltz of Johnson Controls, who also noted all the roadwork going on. “We’re investing at the right time.”

Tim Meininger, president of Beacon Bank, sees signs of a slow recovery. At Beacon, which specializes in commercial lending, demand for loans is high.

“We’re swamped at the bank,” he said. “We have our fingers crossed that the worst is over.”

J.P. Damico, owner of After Hours Computer Repair, is among businesses not hurt by the recession. Since starting up the trouble-shooting business in Duluth 2½ years ago, he’s expanded to eight other cities in Minnesota and Wisconsin.

He likened his business to car mechanics. When times are tough, more opt to repair rather than replace.

“More are fixing computers than replacing them, so actually repairs are up,” Damico said. “We’re getting more calls, so business is booming.”

When it comes to unemployment, Duluth is faring better than the state and nation, says Sen. Amy Klobuchar, D-Minn., the event’s featured speaker. Duluth’s unemployment rate is 7½ percent, compared to the statewide average of 8 percent and the national average of 9.8 percent, she said.

Stebe, who is the Northern Minnesota representative for a bricklayers union, said he’s getting a lot of requests for work from union members in Minneapolis. That goes against the norm.

“During slow times, usually they do better, and our guys go down there,” he said.

Duluth’s innovative economy is allowing it to bounce back faster than a lot of places, Digby said. “Things are happening faster here than elsewhere.”

Tags: economic recovery, duluth, minnesota, daily updates