Panelists discuss myriad ways small manufacturing businesses can thrive in rough economy
By NELSY RODRIGUEZ - Staff Writer, The Californian | Tuesday, February 24, 2009

MURRIETA ---- Professionals from the real estate, banking, utilities and small business advocacy worlds came together Tuesday to give local manufacturing business owners information on staying afloat during a stormy economy.

Hosted by the Murrieta Economic Development Department, the three-hour Manufacturing in Murrieta forum brought as many as 50 attendees to Murrieta City Hall.

Panelists discussed real estate opportunities for starting or relocating a manufacturing business, how the near collapse of the American banking system has affected business loans, and ways that advocacy groups can help garner new sales dollars for existing businesses.

Business owners who attended the forum said the free information was valuable, particularly as the tapped-out construction industry has taken some manufacturing businesses down with it.

"We're just trying to look at all the resources available," said Mike Fitzpatrick, a Murrieta resident who owns Arch Doors & Moldings in Temecula. "Doors are in the building industry, so it's slow. We're trying to stay above, stay on top."

At the top of the forum, the heads of three local banks all touched on one topic ---- small-business loans.

Gary Votapka, chief executive officer of Mission Oaks National Bank, said the bank "is not out of the loan business," indicating that qualified candidates seeking small-business loans would be welcomed.

Frank Basirico, CEO of Temecula Valley Bank, said business loans have been put on "a brief moratorium," and Commerce Bank CEO Bill Demmin said SBA loans have been "taken out" of the marketing plan "for the immediate future."

But where lending opportunities may have shrunk, opportunity for expansion is at unparalleled heights.

With lease rates down as much as 40 percent this year compared with the peak in 2006, panelists from the commercial real estate sector said business owners looking to move or branch out may find some great deals.

More encouraging news came from a representative of the Small Manufacturer's Advantage Program, a federally funded effort that helps companies develop business plans, identify their strengths and address their weaknesses.

In 2008, the program helped 419 small companies increase their sales by $24.7 million, said program representative Hope Scarborough.

Opening the forum with a personal message, Murrieta Mayor Gary Thomasian encouraged those in the audience to remain strong while everything in the economy seems to be weakening.

"I know what it's like to be a manufacturer," said Thomasian, who owns a dental crown manufacturing business in Temecula. "You can put your head in the ground and do nothing, or you get out there and pound the pavement."

Contact staff writer Nelsy Rodriguez at (951) 676-4315, Ext. 2626, or nrodriguez@californian.com.