Business owners review 2007, posture themselves for 2008

A variety of industries contribute to Fallbrook’s economic picture. In speaking with business owners immersed in three of those industries – retail, construction and art – it is evident that last year presented some unique challenges, but new trends have been noted that will be helpful in posturing business to prosper in 2008.

Retail

Downtown Fallbrook is known to offer a somewhat diverse and unique shopping experience. Some retailers decided early in the year to put a significant amount of time and energy into market research, focusing on being more selective in inventory decisions in hopes of appealing to buyers.

Marie Kinnaman, owner of At Home On Main Street, was delighted by her Christmas sales. “In 2007, our holiday season was better than the year before,” said Kinnaman. Her stock of handmade gifts and international items took shoppers by storm.

A popular item that boosted Kinnaman’s sales in 2007 was the hypoallergenic bamboo clothing line she added. “It’s been our best seller all year,” she said. “Bamboo clothing is so soft and so comfortable.”

The items selected for stock at At Home On Main Street are not placed there by routine, cursory buying. Kinnaman is diligent in her research. “Our buying trips start in a few weeks and we are working around the clock right now deciding what we are looking for this year,” she said.

This shop has certainly evolved in a positive way over the last five years. “We have become more of a lifestyle store than a home accessory store,” she said. “We just keep on getting better and better.”

In Jackson Square, Melissa Ross welcomes visitors to her shop, Lavender Dreams. Though sales were sluggish in 2007, luckily things picked up during the holidays. “We got a late start, but mid-month in December we got busy,” said Ross.

Internet shopping is one of Ross’ concerns. “I’m afraid it’s affecting our shops in town,” she said. A small store such as Lavender Dreams strives to be different. “You have to be unique in a small shop if you want to survive.”

It is this type of retail challenge that spurs Ross into purchasing truly unique items to appeal to the consumer. She is another who tirelessly works to improve her retail business through market research and well-thought-out buying trips.

In 2008, Ross plans to give Lavender Dreams a facelift. “I will have venues of French, Italian, Old World and whimsical looks,” she said. “My things, you can’t find at the mall.”

Construction

Local building contractors say the industry was slow in Fallbrook throughout 2007, edging toward stagnant in the last quarter. With new home construction costs on the upswing due to added regulations, it appears that more and more homeowners are doing spot remodeling on their existing homes, like improving and updating kitchens and baths. It is these types of projects that are feeding the industry, they say.

“Because of the lack of new homes, I had more inquiries about people looking for work toward the end of the year,” said Dennis Dueling, owner of Dueling Construction.

Dueling specializes in remodeling jobs and says since the 2007 fire, he has not seen any increase in his business relating to post-fire reconstruction work, but he has done his homework just in case. Dueling says due to new fire regulations established after the 2005 fire, construction costs are higher. “There are a lot of new fire regulations in the building code,” he said.

He estimates the cost of rebuilding to be between $300 and $350 per square foot. “I can only attribute these high costs to the new fire regulations,” he said.

Energy availability is also expected to affect the construction industry, Dueling said. “I have been told that in five to seven years, you won’t be able to get a building permit that will put you on the electrical grid in the county; we will be maxed out.” Future builders will have to show the county how their client will supply their own electricity.

The first half of 2007 was extremely successful for Youngren Construction, said owner Scott Youngren. “From the middle of the third quarter and into the fourth, business slowed down,” he said. During this timeframe, Youngren estimates his business experienced a ten-percent decline.

The main source of business for Youngren Construction continues to be remodeling and commercial TI work, which is already looking even stronger for 2008. “The first two quarters of 2008 are expected to exceed our 2007 numbers,” he said.

Commercial jobs are expected to peak to 40 percent, a big increase from last year, Youngren explained. For residential jobs, Youngren forecasts that 2008 is going to lean more toward kitchen and bathroom remodels.

“Even though the market has slowed down, it gives people who are looking to hire contractors more choice, and they now can get the better contractors.” Good contractors with solid reputations will always stay busy, said Youngren.

Youngren anticipates another decline in late 2008 but says that overall he doesn’t expect it to affect business all that much. “It’s odd, but for me, these jobs mean we create more work for our in-house guys,” he said.

Following the Rice Canyon Fire, Youngren said he consulted with a number of fire victims and a couple of projects may be in the works. However, the increase in sales for Youngren Construction in 2008 is not expected to be attributed to fire reconstruction.

Art

The burgeoning art industry in Fallbrook maintained itself quite well in 2007, insiders say, and exciting changes are leading them to look at 2008 with great anticipation.

With distinct foresight, the Fallbrook Village Association recently hired noted arts supporter and advocate Martha Minkler. Acting as executive director, Minkler will be championing the sophisticated collaboration of the Art Campus at Fallbrook, Art Center at Fallbrook, Brandon Gallery and Art in Public Places. Her efforts are expected to put Fallbrook on the artistic map.

The hope, of course, is to bring more “art people” and “art lovers” to Fallbrook and increase traffic in the local host of galleries, such as the Fallbrook Fine Art Gallery.

Colleen Aichle, owner of Fallbrook Fine Art Gallery, said she was both shocked and delighted that 2007 was such a good year. “Ironically,” she said, “my best month was the month of the fire.”

Aichle says buyers find the artwork she offers an unexpected surprise. “My art gallery focuses on fine artists who show in galleries around the country,” she said. “My artists are highly professional.”

Her gallery also offers art from the Soviet Impressionist Period. “This art has become hot in the international market and my husband and I collect in this arena,” explained Aichle. This collection has undoubtedly raised the level of art in Fallbrook for savvy collectors.

Two of her local artists, Carol Lindemulder and Carly Castillon, also have their works displayed at other noted galleries.

Aichle is anticipating a wonderful 2008. “I think it will be a big year for art in Fallbrook,” she said, “because we have The Visitors Bureau working for us on our behalf.”

The Art Center shows bring people to town as well. “Although we are known for avocados, people aren’t going to drive four hours to see an avocado,” she quipped.

Brandon Gallery, a co-op gallery that originated in 1977 but turned nonprofit in 2001, offers a unique venue. “Our members are well-known in the community and region as instructors and workshop leaders,” said Minkler. “Most are benefactors and participants of local art events.”

Brandon Gallery carries a wide variety of artwork that attracts diverse buyers. “We have the best art, for the least amount of money, anywhere around here,” said Minkler.

At Brandon Gallery, buyers lean toward watercolors. “Computer image art is also becoming popular, as well as our photography pieces,” said Evelyn Cramer, gallery treasurer. “We have such a great selection.” Handmade jewelry, glass pieces and sculptures add to the top seller lists.

The fundraisers at Brandon Gallery showcase the talented, degreed artists who are part of this exciting venue. “Our artists are all celebrated artists,” said Miller.

With the various art venues in town working together collectively, forming a powerhouse to market the offerings to artists and art aficionados everywhere, more and more systems are falling into place to grow this new sector of the economy.