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Businesses had ups and downs
It's been a roller-coaster year for the Fredericksburg area's economy.Date published: 12/29/2001 By Rusty Dennen For Fredericksburg's economy, and for many of the companies that make up its fabric, 2001 will go down as a year of extremes. The year began much as 2000 ended, with a booming economy--fueled in large part by the region's construction juggernaut--and a tight labor market that had job-seekers overjoyed, and companies practically fighting over them. Then came Sept. 11. The terrorist attacks on the World Trade Center in New York and the Pentagon in Virginia delivered a crippling blow to the travel industry in particular. That, combined with war and a slowing economy that teetered into recession by the second half of the year, has taken a toll across the economic landscape. Here are some of the highlights: Area travel agents were among those suffering the most in the wake of the Sept. 11 terrorist attacks. Others took a hit as the economy plummeted after the attacks. For some, the company image was damaged. A few area gas stations enraged customers by spiking prices right after the attacks. Rental car companies infuriated people by charging exorbitant fees to people who turned to them when the nation's airports closed. Immediately after the attacks, area shopping centers and malls were like ghost towns. By the Christmas shopping season, area stores offered deep discounts to encourage spending and reported success. Meanwhile, some businesses boomed. Bookstores were wiped clean of Bibles, apocalyptic material and anything explaining why some extremist Muslims hate Americans. Local business owners who stocked up on flags and other patriotic items saw sales boom. Local dealers had brisk sales as the attacks prompted zero-percent financing deals on new cars. Wards--the venerable department store chain--announced it would close after filing for bankruptcy. About 125 employees lost their jobs once the Spotsylvania Mall store closed, and the mall lost shoppers. Jobless rates in Fredericksburg reached 4 percent in October, the first month to fully reflect the impact of the attacks. That was up from 2.1 percent in October 2000. Local residents flooded the local Virginia Employment Commission office in search of work after being laid off from technology firms, airlines and other offices. But the uncertain times worked in shoppers' favor. Many car dealers sold record amounts of vehicles by offering interest-free financing.
Date published: 12/29/2001
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