Our Business Communities Recover from Recession

Feb 27, 2017

Our Business Communities Recover from Recession
Kenneth Harwood
Economist
Solvang Chamber of Commerce
Five business communities in the Santa Ynez Valley economic area recovered from the Great Recession at different rates. The table below shows the communities in order of size by number of businesses before and after the Great Recession of 2007-2009.
Place (ZIP code) 2004 2014 Percent change
Solvang (93463) 337 314 -7%
Buellton (93427) 196 226 +15%
Santa Ynez (93460) 197 184 -7%
Los Olivos (93441) 75 86 +15%
Los Alamos (93440) 24 27 +13%
Faster recovery took place in Buellton, Los Olivos, and Los Alamos. Slower recovery was in Solvang and Santa Ynez. The five communities had 829 businesses in 2004 and 837 ten years later, suggesting that the economic area on average recovered by 2014, five years from the end of the recession.
Solvang was the largest business community before and after the Great Recession. Buellton and Santa Ynez swapped ranks during the ten years. Los Olivos and Los Alamos remained much smaller than any of the other three communities, although the two smaller towns grew well.
Gains in Buellton seemed to come from light manufacturing, based upon nearness to the main highway and to ample water supply. Slow recovery of construction industries and retailers of household furnishings appeared to be common across communities, much as the rise of wine tasting and craft brewing added to the number of businesses in all communities.
Business establishments were those reporting one or more employees full time or part time. About twice as many businesses reported no employee. Perhaps ten percent of business did not report.
For business establishment data by ZIP code please go online to U. S. Census Bureau, https://factfinder/census.gov/faces/tableservices/jsf/.

Posted in Dr. Ken Hardwood.