Local Economy Shows Signs of Recovery
The Idaho tax commission released numbers showing eastern Idaho saw the biggest drop in annual sales between 2007 and 2010 than any other region in the state.
Now more than halfway into 2011, local businesses say sales have picked up, despite the slow economic recovery.
It’s no secret the Riot Zone in Rigby has felt the effects of the recession, but manager Aaron Lilly said business has picked up this summer.
“We used to sell one ticket at a time, and now we do a play everything all day and people have bought a lot more this year to maybe get more for their money,” Lilly said.
To stay afloat in the downturn, Lilly said they have had to make some changes.
?We’ve definitely had to come down on prices,? Lilly said. ?Find out what people can afford. If you charge too much, they won’t come.”
It’s not just the Riot Zone seeing changes in business, despite the decrease in sales Merlin’s TV has changed their business platform and is now selling furniture to go along with the TVs.
“It’s been great for us, sometimes expanding in a bad economy is not the best but it did good,? Merlin’s TV Ammon store manager Steve Strickland said. ?Our furniture goes along with what we do and people are buying.”
And the local gross domestic product shows Eastern Idaho never really stopped spending.
From 2007 to 2009 the Idaho Falls metro area’s GDP only dropped 1.4 percent, far lower than the state average of 3 percent.
“Compared to other areas I think we’re doing pretty well,” regional economist Will Jenson said.
And Merlin’s TV agrees, people are still willing to spend.
“It’s doing very well,? Strickland said. ?We feel very comfortable that consumer spending for our economy is doing good. they are coming in and buying stuff which is wonderful, we are doing all right.”
Local economist Will Jenson said the 16 percent decrease in sales from 2007 to 2010 may be attributed to the slump in the housing market and failure to account for the economic activity from federal dollars this area is so dependent on.
South central Idaho saw the least amount of change in sales from 2007 to 2010.
The region attributes the stable economy to the balance of agricultural and non-agricultural industries in the region.
