Inflation Navigation: Economic funding in times of need

Editor’s Note: This story was previously featured in The New Political’s 2022 summer magazine The More Y{ou} Know.

Inflation, supply chain issues, labor shortages and price surges have been felt globally, but an organization in Athens county continues to aid local businesses. 

Athens County Economic Development Council (ACEDC) is a group of local representatives, including Athens Mayor Steve Patterson, that gives economic aid through grants and funding.

In the U.S., the Consumer Price Index (CPI) has risen steadily since October 2021. This means costs of everyday goods for consumers have been increasing, directly relating to inflation. With the CPI at 8.6%, the highest rate since 1981, small businesses can use all the help they can get.

ACEDC started in 2008 after economic development shifted away from the Athens Area Chamber of Commerce. The organization has multiple sectors that are able to regulate businesses and land grants. The Ohio Department of Development, JobsOhio and OhioSE Economic Development, all of which provide funding for businesses in some form, work with the organization to assist projects in Southeast Ohio.

Recently, a grant of $125,000 from ACEDC was given to Athens businesses, including Red Tail Design and Dirty Girl Coffee.

Red Tail Design is a company located on the north side of Athens that specializes in woodworking and graphic design/branding; Athens Area Chamber of Commerce, Fluff Bakery and Butcher's Bites have all received branding help. Many of the services from Red Tail Design require efficient supply chains and reasonable prices. Wooden boards, cutting materials and packaging, are just a few of the items the company relies on daily. 

Some products created by Red Tail Design are pictured above. Photo provided by Tim Martin.

The owner, Tim Martin, described price hikes when ordering Baltic Birch plywood, a material essential for wood making.

"Before the pandemic, I was paying $15 a sheet. When the pandemic hit, it jumped to about $30 a sheet, because of import issues," Martin said. He noted that once the war with Russia and Ukraine hit, the material was unattainable.

ACEDC gave Martin's business the first part of the $125,000 grant when the pandemic started, and a more recent grant was given for an instrument vital for branding and designing.

"We recently got another grant to purchase a laser from ACEDC and JobsOhio," said Martin. "That was definitely a huge help."

At the beginning of the pandemic, Dirty Girl Coffee was able to find assistance. JobsOhio also executed the contribution through ACEDC.

Dirty Girl Coffee, just over 20 minutes northeast of Athens in Glouster, has dealt with economic and supply woes similar to Red Tail Design, like price hikes and changes in supply shipped.

"Green coffee shipments have been delayed five months, running us critically low on certain inventory items," said Jane Cavarozzi, owner of Dirty Girl Coffee, adding, "Coffee costs have risen significantly."

Dirty Girl Coffee has eyed expanding since before the pandemic, and a JobsOhio grant helped navigate the process. Given the current economic conditions, they are now hoping for a grant from the Finance Fund of Central Ohio.

While ACEDC cannot control the rates of inflation in Athens County, the organization is aware of the issue and has advice for policymakers. Mollie Fitzgerald, executive director of ACEDC, notes that members "hope that state and federal programs continue to incentivize onshoring or manufacturing and improvements to supply chain challenges."

Being a public and private organization, ACEDC can partner with local companies, as well as government institutions. The City of Athens government and the Athens County government work with ACEDC for economic development and projects. 

Kathy Hecht, City of Athens auditor, has seen local businesses' revenue shift through the pandemic and now with inflation.

"Overall, our business tax revenue is down from last year at this time but still much higher than in 2020. I expect it will even out by the end of the year," said Hecht. She was speaking on the state of tax revenue as of May 31.

Despite economic uncertainty, future projects are being funded in the region. An assessment for redeveloping land around Bailey's Trail, turning a Chauncey school building into a restaurant and lodge and a planning grant for the City of Athens are all on the agenda for ACEDC.