Obama’s victory concerns some local business owners

By David Skolnick

Youngstown should benefit from the new president’s programs, Mayor Williams said.

The change that President-elect Barack Obama promised during the campaign won’t come overnight, say his supporters in the Mahoning Valley.

“Although we have a lot of great hopes and are full of great expectations, we have to also temper that enthusiasm with a dose of reality and not set the bar so high,” said Herb Washington, a local businessman who hosted Obama’s first Valley fundraiser in June 2007.

Washington, who owns a number of local McDonald’s restaurants, said it will take time to turn around the country. “The mess we’re in isn’t going to take 100 days to fix,” he said.

Washington, who is black, said that Obama’s win is a dream come true. “It gives hope when sometimes you think there is no hope,” he said.

But Obama’s victory has some other local business owners on edge.

“I’m concerned with numerous issues he stands for that I think will be ramrodded through Congress,” said Michael Kovach, president of City Machine Technologies in Youngstown.

Increased tax rates are his primary concern.

“They’re going up. I don’t mind paying my fair share, but I want everyone to pay their fair share, too,” he said.

Kovach said his business, employing 80, is doing fine. But he has delayed buying some new equipment that has the potential to increase sales. He said he is concerned by the economy and the impact of new taxes.

“You begin to wonder why you’re working so hard if this is what you’re rewarded with,” he said.

One of the key reasons Obama beat Republican John McCain for the presidency is people weren’t satisfied with the economy, Youngstown Mayor Jay Williams said.

Obama plans to focus attention on urban areas that face economic struggles, such as Youngstown, Williams said.

“We should be of benefit to his plans to increase infrastructure programs and stimulus packages for cities,” Williams said. “But it’s important we don’t wait. We have to go out and” be aggressive in obtaining money from federal programs designed to help cities such as Youngstown.

Also, Williams, who supported Obama, said the Mahoning Valley will have a president who understands the challenges facing this area.

“We expect to have someone who will listen to us,” he said. “I don’t expect the day after he’s inaugurated that it will rain manna from heaven. But over the course of time, our presence will be known in Washington.”

State Rep. Tom Letson of Warren, D-64th, an early Obama supporter, agrees with Williams that the Valley won’t be forgotten by Obama.

“We’ve had presidential candidates campaign here, make promises and after being elected, do nothing,” he said. “Democrats and Republicans alike have done that to us time and time again.”

Obama will focus on creating jobs, improving access to health care and improving education from early childhood to higher education, Letson said.

“The expectations are high, but there is no quick fix to this,” he said. “You can’t fix the country overnight. It’s a long-term, stick-to-your-guns effort to turn around the nation.”

The potential for costlier government regulations and higher taxes worries Brian Benyo, president of Brilex Industries in Youngstown.

“Every dollar we pay in taxes is money we could have invested to give us the opportunity to create jobs,” he said.

Brilex, which employs 140, builds large industrial equipment. Business levels are remaining good because of growth in the power distribution and alternative energy industries, Benyo said.

Businessman Herbert Schuler Sr. said Obama won’t be able to implement changes as quickly as he thought. Schuler, chairman of General Extrusions, said he thinks new programs that call for spending increases will be delayed once Obama’s economic team sees the extent of the economic problems.

“The economy is in trouble, and it’s in trouble worldwide,” he said.

General Extrusions, which processes aluminum in Boardman and Leetonia, has laid off nearly 100 of its 350 workers. More could be possible if markets, such as automotive, don’t pick up, he said.

“November and December are absolutely atrocious as far as incoming orders. It’s going to be a tough couple months,” he said.

State Rep. Robert F. Hagan of Youngstown, D-60th, said he spoke to Obama early in the campaign about the Valley.

“I told him of our struggles with the economy and health care, and he will address those issues,” Hagan said. “We need to rebuild our cities. We need government help to rebuild our infrastructure. If that is done, you can bring companies to our area, and that helps our economy.”

Obama will focus a lot of attention early in his presidency on increasing access to health care, said William Binning, the former chairman of the Youngstown State University political science department.

“People will also look at what he does to stimulate the economy,” Binning said. “I’m not sure he’ll do much, but he needs a midterm achievement. President Clinton tried to do something with health care midterm. It failed and it cost the Democrats the House [of Representatives]. He needs to have some sort of achievement with health care.”

Fred Scarsella, owner of Scarsella Furniture in Canfield, said he thinks the economy will improve just because the election is over.

“A lot of people get concerned, and when they are concerned, they are not in a buying mood,” he said.

He said the store’s sales had been running even with last year until lately.

It now looks like the last three months of the year will be 10 percent to 15 percent lower than the last quarter of 2007, he said.

He said other dealers and wholesalers say they are facing the same slowdown, but he thinks consumers will feel more optimistic with a new president.

“Psychologically, he will help. He’s a fresh face,” Scarsella said.

Obama’s message of change resonated with voters, Binning said.

“But I’m not sure what they’re expecting” from Obama, he said. “A lot of it is luck, and we hope he has a lot of luck.”

skolnick@vindy.com

shilling@vindy.com