Culpeper's Silver Lining

Culpeper Star Exponent

Business Monday

March 4, 2013

Jim Charapich

Normally I stay focused on the positive aspects of our community. However, I am going to take a break from being positive to address a concern that I have for our economic vitality. The scale of our community allows us to be very sensitive to subtle changes in the business ecosystem. This past week I noticed what seemed to be a change in the attitudes of local business leaders.

The changes in Washington do not usually show up on the radar quickly. However, our proximity to Washington leaves us more vulnerable to the effects of the fabled “Sequestration”. Whether there is truth to the “Cliff” or not, consumer confidence is affected by the avalanche of media coverage and the spectacle in Washington. Many of our businesses rely on the traffic from the Washington Metro Area to support sales for restaurants, hotels, and retail shops in Culpeper.

 
In addition, the impact of health care reform is beginning to take root. With businesses considering how to reposition their workforce for 30 hours or less in order to avoid paying for health care benefits, the business outlook is cautious. Health care benefits can add significantly to the cost per employee and thus the business is faced with the dilemma of lowering hours, increasing employee count, or raising prices to cover the cost of healthcare. Who wins in this equation? Consumers pay more, businesses overhead goes up, and the economy is in a “cautious mode”. Washington has dealt us a challenging hand and yet I see a silver lining for Culpeper in the midst of this cloud of government imposed snow.

If sequestration and healthcare reforms force costs and prices upward, then business and consumers will look for ways to save. Beltway contractors that are supported by government spending will need to find cost reduction solutions that preserve their ability to do business and make a profit. They will also need to consider their employees quality of life and their ability to keep employees in the escalating cost environment. Consumers will look for locations to escape Washington for easy getaways. They will seek local venues for day or weekend trips rather than traveling to distant more expensive locations.

 

 

The answer of course is right in the NoVa back yard, Culpeper, VA. The business friendly environment is perfect for government contractors to have access to Washington via car, rail, and air. Our area has the infrastructure to support even the most robust uses of power. The fiber infrastructure for high speed data is world class. The Culpeper Regional Hospital is part of the University of Virginia Health System, allowing for access to state of the art health care technology in a friendly rural setting. In addition, the emerging fitness community here is leading the way in a cultural shift to preventative health care with strong outdoor cycling, mountain biking, running, and strength training communities. 

The quality of life at the foot of the Blue Ridge Mountains is like being in a small town at the foot of the Italian Alps – fine food, local wine, unique shopping experiences, and the fresh air to enjoy them all. Our strategic opportunities are at hand.