Progress, not yet victory

It’s probably an oxymoron, but 2007 could be described as quietly eventful on the local business scene. Nothing particularly earth-shaking happened, but news trickled out as the year went by, thankfully more of it good than bad.

There was some drama, in the form of a split decision to install Todd Vonderheid as the new leader of the Greater Wilkes-Barre Chamber of Business and Industry after an extended and frustrating search. For his reward, Vonderheid had to chart the economic development group’s course through rocky fiscal waters that required staff reductions and the sale of long-held property.

After first saying a new approach might fill vacant storefronts in the flagship Northampton & Main redevelopment project, his plans changed to include a likely sale that could help relieve the pressure of the chamber’s $20 million commitment.

Some big deals changed the business ownership landscape and meant the end of local control for three long-established names. On the plus side, newcomers of the e-commerce variety flourished, adding jobs and planning physical expansions.

Wilkes-Barre’s downtown, which many observers see as the linchpin of future prosperity, continued to evolve. Some new businesses didn’t survive, but others more than made up the difference, particularly when it came to dining choices.

While the local real estate market was less volatile than hotspots like Las Vegas, Northeastern Pennsylvania wasn’t immune to disruption. But the region’s natural conservatism meant there were fewer exotic mortgages to go bad, so that even after large percentage spikes in foreclosure actions the rate was still below national figures.

Job seekers had an easier time of it for most of the year, as the unemployment rate sank to a 34-year record low 4.2 percent in March, then creeped up to 5.1 percent in October, matching the year earlier. The total number of non-farm jobs rose to a new high, led by the service sector that now accounts for more than four of five jobs.

Consumers took it on the chin, absorbing punishing gasoline price hikes and increased charges by utilities. Unleaded gas hit $3.16 per gallon in November and appeared ready to end the year over $3. That’s more than 25 percent higher than a year ago. Ouch!

PPL Electric Utilities made the first of six purchases of future power, paying about 35 percent more than the present cost for current to be delivered starting in 2010.

UGI Penn Natural Gas customers learned in June they would pay on average nearly $19.75 a month more because of the higher cost the utility pays for the fuel.

Water companies joined in, with Pennsylvania American Water winning approval for a nearly 9 percent rate hike.

If they had money left over – and judging by the $2 billion stuffed into slot machines there was some – fun seekers could choose to spend some at either Mohegan Sun at Pocono Downs or the Mount Airy Casino Resort, which opened in October.

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Business

New business/industry CEO faces fiscal tests. Redevelopment in W-B has ups, downsYEAR IN REVIEW

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