The Collegian

Issue date: 10/30/08 Section: Beyond

Media Credit: Cody Ewers Thre Gathering Coffee House in downtown Hillsdale will move to The wedge sometime in November.

Media Credit: Cody Ewers

Sales are down in Hillsdale, but there are no signs of immediate danger for local businesses, Hillsdale Economic Director Christine Bowman said.

Despite the country's recent economic woes, Hillsdale businesses are optimistic about their chances of survival and an eventual rebound. While some business owners hunker down to endure the bad economy, others find their business unscathed and, in some cases, better off.

Eric Leutheuser, president of Leutheuser GM in Hillsdale, said although vehicle consumption is down since a few months ago, he's not worried about the declining economy threatening his business.

"We have seen a drop-off lately," Leutheuser said. "But we've gone through tough economic times similar to this before in the 70s and 80s and been fine."

Leutheuser attributed the drop in sales to rising gas prices and anxiety about the future instead of trouble getting financed on a vehicle.

"Vehicle purchases are probably more sensitive to the tightening financial situation than a lot of other purchases," he said. "But having said that, most people that could get financed before still can today. The local banks we do business with aren't as congested as they might seem."

Bowman agrees.

The financial crisis hasn't yet trickled down to directly prohibit consumer spending in Hillsdale businesses, she said, but the recent sluggish economic activity of some businesses can be explained by apprehension of more economic decline.

"We are in such unchartered territory that people don't know what to expect," Bowman said. "I think everyone is holding their breath until after the election to see which direction the nation will move in."

Cheryl Balcom, owner of The Gathering Coffee House in downtown Hillsdale, said her sales have increased. Despite the month's dramatic market activity she's enjoyed three of her busiest weeks ever.

Balcom said she also doesn't foresee much of a drop, if any, due to the nature of her products.

"People might not buy so many big-ticket items," she said. "But they love their little treats and I don't think they'll stop buying them."

She plans to expand her operation by moving her shop to a bigger building in the downtown area by Thanksgiving.

Overall, Hillsdale businesses are holding steady and are in no jeopardy of rapid decline for the time being, Bowman said.

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