Business
Economic Cloud Has a Silver Lining
In the early days of Tandem Bank’s existence, Chairman, CEO and Founder Charles DeWitt pointed out how it differentiates itself from many other banks.
In an interview with Atlanta Business Chronicle, he said there would be an increased focus on technology. Three years later, there is a main bank, but customers are encouraged to do more banking with their cell phones and utilize other technology.
The other difference is in the name. DeWitt said “Tandem” refers to the tandem bicycle, and it means that whether the client is an entrepreneur, a real estate professional or business operator, it will stay alongside them, providing capital or safeguarding their money but always keeping the spotlight on the customer.
In keeping with the philosophy of remaining beside clients, Tandem hosted its first Economic Forum on Thursday, September 22. The event featured Roger Tutterow, professor of economics at Kennesaw State University (KSU). He also serves as director of the Econometric Center, a research center housed in KSU’s Coles College of Business.
Economic insights shared
Tutterow shared his insights on the current economic situation and explained where metro Atlanta, the state of Georgia and the United States stand in global finance. His take was entertaining as well as informative as he covered critically important issues, such as:
- Persistently high inflation and rising interest rates,
- Labor challenges and supply chain woes,
- Downward trending consumer sentiment, and
- Likelihood and possible depth of a recession.
“We went through an incredible economic period from July 28, 2009 until February 2020,” said Tutterow. “The economy grew for 128 consecutive months, the longest economic expansion of the post-World War II era. And then the pandemic came. And we went from an economy that was growing at 2¼% to one that started contracting overnight.”
Although that was no surprise, the repercussions and recovery have many confused about whether we’re headed back to prosperity. “Today, the question on many people’s minds is ‘Are we currently in a recession? Or is one the likely outcome in the near term?’” he said.
With that as background, Tutterow showed some fundamental data to help find an answer. He first explained that the National Bureau of Economic Research (NBER) will determine an answer through analysis. On the other hand, it’s not inconceivable that the economy may actually start growing again.
“It may well be several more quarters before we get a final ruling,” Tutterow said.
There’s a misconception that two negative quarters of GDP growth indicate a recession is imminent. The NBER says a period of diminished activity in production, trade, income and employment of sufficient depth and breadth are proof of a recession. So, with payrolls still growing and industrial production still rising, it actually doesn’t appear the economy has been in recession in the first half of 2022.
Although the economy plunged during the pandemic, once things started reopening, consumer confidence came back up, said Tutterow. “And then we got into 2021. And the summer of 2021, fall 2021, confidence started falling.” he said.
Some media sources tend to blame the economic issues on gas prices. “The consumer psyche is overly sensitive to gas prices,” Tutterow said. “Gasoline prices exert more effect upon the perceptions of inflation than the actual percentage of the expenditures.
“Let’s be honest, gas prices matter. …So when the price of gas goes up by $2 per gallon, that’s $2,000 of after-tax, disposable income that goes from you into the gas tank [if you average about 1,000 gallons a year.]”
At the end of the day, the economy isn’t doing so bad, Tutterow stressed. Even though interest rates have climbed a little, buying a house at 7% interest sure beats the 18% average people were paying in 1981. Historically, access to capital is still cheap.
In the early days of Tandem Bank’s existence, Chairman, CEO and Founder Charles DeWitt pointed out how it differentiates itself from many other banks.
In an interview with Atlanta Business Chronicle, he said there would be an increased focus on technology. Three years later, there is a main bank, but customers are encouraged to do more banking with their cell phones and utilize other technology.
The other difference is in the name. DeWitt said “Tandem” refers to the tandem bicycle, and it means that whether the client is an entrepreneur, a real estate professional or business operator, it will stay alongside them, providing capital or safeguarding their money but always keeping the spotlight on the customer.
In keeping with the philosophy of remaining beside clients, Tandem hosted its first Economic Forum on Thursday, September 22. The event featured Roger Tutterow, professor of economics at Kennesaw State University (KSU). He also serves as director of the Econometric Center, a research center housed in KSU’s Coles College of Business.
Economic insights shared
Tutterow shared his insights on the current economic situation and explained where metro Atlanta, the state of Georgia and the United States stand in global finance. His take was entertaining as well as informative as he covered critically important issues, such as:
- Persistently high inflation and rising interest rates,
- Labor challenges and supply chain woes,
- Downward trending consumer sentiment, and
- Likelihood and possible depth of a recession.
“We went through an incredible economic period from July 28, 2009 until February 2020,” said Tutterow. “The economy grew for 128 consecutive months, the longest economic expansion of the post-World War II era. And then the pandemic came. And we went from an economy that was growing at 2¼% to one that started contracting overnight.”
Although that was no surprise, the repercussions and recovery have many confused about whether we’re headed back to prosperity. “Today, the question on many people’s minds is ‘Are we currently in a recession? Or is one the likely outcome in the near term?’” he said.
With that as background, Tutterow showed some fundamental data to help find an answer. He first explained that the National Bureau of Economic Research (NBER) will determine an answer through analysis. On the other hand, it’s not inconceivable that the economy may actually start growing again.
“It may well be several more quarters before we get a final ruling,” Tutterow said.
There’s a misconception that two negative quarters of GDP growth indicate a recession is imminent. The NBER says a period of diminished activity in production, trade, income and employment of sufficient depth and breadth are proof of a recession. So, with payrolls still growing and industrial production still rising, it actually doesn’t appear the economy has been in recession in the first half of 2022.
Although the economy plunged during the pandemic, once things started reopening, consumer confidence came back up, said Tutterow. “And then we got into 2021. And the summer of 2021, fall 2021, confidence started falling.” he said.
Some media sources tend to blame the economic issues on gas prices. “The consumer psyche is overly sensitive to gas prices,” Tutterow said. “Gasoline prices exert more effect upon the perceptions of inflation than the actual percentage of the expenditures.
“Let’s be honest, gas prices matter. …So when the price of gas goes up by $2 per gallon, that’s $2,000 of after-tax, disposable income that goes from you into the gas tank [if you average about 1,000 gallons a year.]”
At the end of the day, the economy isn’t doing so bad, Tutterow stressed. Even though interest rates have climbed a little, buying a house at 7% interest sure beats the 18% average people were paying in 1981. Historically, access to capital is still cheap.
Left: Weare Gratwick
Sr. VP/Gwinnett Market President
470-482-1818 Office
Right: Wendy Willis
Business Development
470-482-1819 Office
www.tandem.bank
The Peachtree Corners Business Association (PCBA) awarded a check for $500 to the United Way of Greater Atlanta (Gwinnett County) at their Business After Hours networking event in November.
The local organization was chosen by PCBA’s Outreach Committee because of their commitment to providing assistance and bettering the lives of children within the community.
United Way of Greater Atlanta
The mission of United Way of Greater Atlanta is to engage and bring together people and resources to drive sustainable and equitable improvements in the well-being of children, families and individuals in local communities.
“Greater Atlanta is one of the most vibrant regions in the country, but the region has significant barriers to realizing its potential in the future because of its continued ranking at the bottom of the list of metro areas in income mobility,” stated Vanessa Roussell, United Way senior director of corporate relations.
“Children born in low-income households have only a 4% chance of getting out of poverty in their lifetime,” she continued. “We at United Way of Greater Atlanta don’t like those odds. Our work is about changing them so that children — regardless of where they’re born — have the chance to realize their potential and build lives that sustain themselves, their families and their communities.
Assessing needs within the county
The organization’s goal is to help every child unlock their full potential, by improving education, healthcare, resources and economic mobility in the communities where they live. Their “every child program” includes every child in Gwinnett.
Based on the 2023 census track for Gwinnett County, 94,308 people living in Gwinnett County are at risk, particularly in and around Sugar Hill/Buford, Duluth, Norcross, Lawrenceville, Lilburn and Snellville. The highest-need residents are located in the I-85 corridor, mainly around Duluth, Norcross and Lilburn.
Giving back to support the community
“The PCBA is proud to donate a check for $500 to United Way of Greater Atlanta (Gwinnett County),” said PCBA President, Lisa Proctor. “Our outreach committee and board are committed to supporting our community, and investing in the well-being of the children in our community aligns with our core principles. We know that our dollars will be targeted to help those at highest risk … We are glad to have the local Gwinnett chapter located right in our community.”
Funds for the PCBA Community Outreach Program are raised throughout the year from PCBA membership, sponsorship and an annual charity event. Donations and scholarships are awarded at their monthly events so that members have the opportunity to learn more about the community organizations and their programs.
Over the past 12 years, the PCBA has awarded 19 scholarships to outstanding graduating high school seniors and donated in excess of $165,500 back into the community.
About Peachtree Corners Business Association
“Where businesses come to grow,” the Peachtree Corners Business Association (PCBA) is a business membership organization that focuses on innovative approaches, programs, shared resources, community outreach and opportunities for member businesses and professionals to connect, develop, grow and prosper.
The PCBA is made up of businesses of all sizes and types who want to expand their reach and grow their business within Peachtree Corners and the greater metro Atlanta area.
For more information visit peachtreecornersba.com.
The strategic acquisition strengthens TransPak’s Southeast presence and expands their capabilities in custom packaging for military, aerospace and high-value equipment.
TransPak, a global leader in logistics, packaging and crating services, recently announced the acquisition of Reid Packaging, a long-standing provider of custom packaging solutions based in Peachtree Corners. Both family-owned and operated companies share a deep-rooted commitment to quality craftsmanship, reliability and customer service, making the acquisition a natural fit.
Reid Packaging, founded in 1982, has distinguished itself as the go-to customer industrial packager in the metro Atlanta region, providing corrugated, foam and custom-engineered crating solutions, particularly in the military and aerospace industries.
Under the ownership of Ward Phillips since 2008, the company has grown to become one of the largest packaging facilities in the region, with a 60,000-square-foot site.
The acquisition will allow TransPak to expand its local manufacturing capabilities in the Southeast, while leveraging Reid Packaging’s expertise in specialized and heavy-duty custom crates.
Strategic Atlanta location and enhanced capabilities
The acquisition is part of TransPak’s strategic expansion into the Atlanta market, a critical logistics hub for both the renewable energy and semiconductor industries.
“We’re thrilled to welcome Reid Packaging into the TransPak family,” said Tomas Molet, executive vice president of East and Midwest Operations, TransPak. “With Reid Packaging’s prime location in Peachtree Corners, we are now able to serve customers throughout the Southeast, including direct routes to the Carolinas and beyond. This acquisition strengthens our ability to meet the needs of existing clients, especially those in the semiconductor and renewable energy sectors.”
In addition to the strategic location, the acquisition brings new manufacturing capabilities to TransPak’s East Coast operations. Reid Packaging’s facility is now the largest of TransPak’s locations in the region. Its offerings include enhanced services, such as heavy-duty and triple-wall corrugated packaging, which will enable TransPak to meet the growing demand for custom-designed packaging solutions for fragile, high-value equipment.
Commitment to employees and leadership appointments
A key focus of the acquisition was ensuring a smooth transition for Reid Packaging’s employees.
“We made a commitment to Ward Phillips to take care of the staff, and we’ve delivered on that promise,” said Molet. “All employees were retained, and we’ve introduced benefits they previously didn’t have as part of our commitment to making this a positive transition for everyone involved.”
Amanda Gautney, a longtime member of TransPak’s leadership team, has been appointed as the operations manager for the Peachtree Corners facility. “I’m excited to work with the team at Reid and continue the legacy of this respected company,” said Gautney.
Looking forward in Atlanta
TransPak plans to continue operating under the Reid Packaging name for the immediate future. However, the facility will gradually transition to full integration under the TransPak brand, reflecting the shared values and commitment to quality of both companies.
About TransPak
Headquartered in Silicon Valley, TransPak has been providing innovative and cost-effective design, crating, packaging and global logistics for over 70 years.
As a customer-focused, women- and family-owned company, TransPak combines the agility of a small business with the reliability of a global powerhouse. TransPak lives by the slogan, “We make it happen,” ensuring that high-value, fragile, and oversized goods reach their destinations safely and efficiently.
For more information about TransPak, visit transpak.com.
Life in Motion: The Gift of Organ Donation Fuels Active Lives for Recipients
Fun for All Ages: The Neighborhood Christmas Train 2024 Experience
Furkids Wraps Up Successful Year with Open House Event and More
Final Restaurants Announced for New Politan Row Food Hall at The Forum
The High Museum to Showcase “Thinking Eye, Seeing Mind”
Final Restaurants Announced for New Politan Row Food Hall at The Forum
The High Museum to Showcase “Thinking Eye, Seeing Mind”
Fun for All Ages: The Neighborhood Christmas Train 2024 Experience
Life in Motion: The Gift of Organ Donation Fuels Active Lives for Recipients
Furkids Wraps Up Successful Year with Open House Event and More
The Dec/Jan Issue of Peachtree Corners Magazine is Out Now
Shaping Peachtree Corners: New Vision for the Central Business District [Podcast]
Take A Walk Back in Time For The Holidays
Light up the Corners [Video]
Capitalist Sage: Business Leadership in Your Community [Podcast]
Cliff Bramble: A Culinary Adventure through Italy
Top 10 Brunch Places in Gwinnett County
A Hunger for Hospitality
THE CORNERS EPISODE 3 – BLAXICAN PART 1
Top 10 Indoor Things To Do This Winter
The ED Hour: What it takes to Remove Barriers from Education
