The Salvation Army of Wake County in particular reports a 30 percent increase in demand for its services.

“People would be surprised of the demographic of people coming in now, “ said Paige Bagwell with the Salvation Army of Wake County. “We are seeing more people that we have ever seen before, that might not have ever had to ask us for help.“

Bagwell is referring to white-collar workers; some who may have had their hours cut at work and can’t make their mortgage payments. She said that many have full-time jobs, homes and bills to pay.

“They are just not seeing the income they are used to and have to make ends meet,” Bagwell explained.

Through its crisis assistance program, the Salvation Army provides financial help for people with past due utility bills and rent. It also operates a soup kitchen Monday through Friday and stocks a food pantry available Tuesday and Thursday to a limited number of individuals and families in need. Bagwell said she has seen a higher demand for these services in particular.

The Shepherd’s Table Soup Kitchen has experienced a similar spike in attendance. In late February, the group held the largest lunch service in its 29-year history – a record of 393 meals.

Tamara Gregory, executive director of the nonprofit organization located on the corner of Morgan and McDowell streets in downtown Raleigh shared her concern. “A lot of our folks never thought they would be here,” she remarked.

Like Bagwell, Gregory has also noticed a changing pattern in demographics during the organization’s daily lunch service, reporting a 12 percent increase in white-collar attendance.

The nonprofit organization serves a hot mid-day meal Monday through Friday to anyone who walks through its doors. The lunch line, which traditionally begins to form on Morgan Street by 9:30 a.m., is forming an hour earlier than usual, Gregory said.

“We don’t let anyone go without a meal. We don’t turn anyone away,” Gregory said.

A daily staff of 26 volunteers typically serves 1800 pounds of food a week, but is currently dolling out 2300 pounds to curb the hunger of a growing lunch line.

“We try to let them feel like they are guests in our kitchen,” she said.

“The demand for our services is growing,” said Bruce Storer, director of development for the Raleigh Rescue Mission. “There are a whole lot more people out there that are becoming homeless because their financial road is collapsing on them.”

Located on East Hargett Street, the Raleigh Rescue Mission offers a long-term recovery program and emergency shelter for poor and homeless men, women and children.

Storer describes a common financial scenario for many who can’t support themselves or their families during tough economic times. “There are a lot of people living so close to the edge [financially.] It doesn’t take long for the domino effect,” he said.

He notes that many individuals who are “doubled-up” by staying with a friend or relative, can also be affected. “When the economy really hurts, people can’t afford to have them stay,” Storer added.

Doing more with less

Despite serving lunches to record numbers, The Shepherd’s Table is experiencing a downturn in donations.

“Most people are saying they just can’t give what they gave last year. Many companies are having to make tough decisions between their employees and philanthropy,” said Gregory.

“It is a kind of perverse situation; our economy is really suffering, and so are local businesses. In that climate, demand for their services falls- and this is not so for us,” Storer said.

Among its forecasts for philanthropic giving in 2009, the LBG Research Institute projects a modest increase in corporate giving to organizations that provide basic needs such as food, clothing, and shelter.

“We are just asking people to support us as they can,” Storer added. “It is difficult to ask people in this climate to give more.”

According to Storer, in-kind donations are particularly vital and the rescue mission is managing expenses aggressively to compensate for any dropping income.

On the flip side, an encouraging report reveals The Salvation Army of Wake County received a nine percent increase in donations during the 2008 Christmas season.

“We just pray we can offer a little bit of hope and comfort for whatever people are going through,” Bagwell mentioned.

Despite the downturn in donations to her organization, Gregory remains optimistic. “We are pretty fortunate, we haven’t seen our pantry get empty yet,” she said.Similar Posts:

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Greg Wood of Village Auto Werks. Photo by Andrew Mayo.

Despite the barrage of talk about recession, massive bailouts, and staggering unemployment numbers, local Raleigh businesses seem to have quite a rosy outlook. Not booming, not collapsing, but cozy.

Pam Wood of Raleigh’s Village Auto Werks isn’t letting the economic pit intimidate her. Her business, and other similarly-minded businesses have such a close connection to the community that supports them that they haven’t seen much of a change in the last year.

While big business may call on legions of analysts and accountants, Wood’s said her first action to plan for what lies ahead was, “I called my mother.” They’ve cut back on inventory, but little else. Advertising? They give customers free t-shirts and maintain a good reputation with their clients and their community.

“You can’t buy advertising like that,” Wood said, speaking of a recent article featuring their business. Many Raleigh businesses rely solely on word-of-mouth advertising, and maintaining a good standing in the community is a priority.

Village Auto Werks recently relocated from their Cameron Village location to a new garage in Boylan Heights, where they share the space with Bill Harris, who also runs a well-respected garage. While remaining exclusive businesses, they share customers. “Whatever we can’t do, he does. Whatever he can’t do, we do,” Wood said. Even with the initial confusion from moving a business, longtime customers have found their new location and continue to bring their cars there.

The auto repair industry is remaining a necessity as people are tending to maintain the old instead of buying new. Ed Gaddy of Raleigh’s Cycle Logic has been relying on repairs in his shop as well. After a surge in business last summer, which he attributes to the rising gas prices, he has seen a dip in customers. He has already built his business in a way that will get him through, running a bare-bones repair shop.

Ricky Davis of City Market Produce. Photo by Andrew Mayo.

Gaddy’s enthusiasm for bicycles helped built his relationship with local cyclists. A woman walks in to Cycle Logic with her son looking for new tires for his mountain bike. He pulls out the specific tire from a rack and describes its benefits down to the pattern of tread, while talking with the woman about their shared interest in flying. He doesn’t advertise, has minimal employees, and has been running his business steadily since 1974.

The produce stand at City Market has been in business since 1913. They have seen a 25 percent decrease in recent sales, but they are not hurting. Ricky Davis, one of the market’s owners, says he has sees the same customers shopping weekly and does not worry about losing business.

Around the corner, Vic’s Italian Restaurant has a similar story. A 25 percent decrease, but a consistent and loyal clientele. Mario Longo, the owner of Vic’s has cut down on his staff and inventory in preparation. He has no doubts about his businesses success: “We’re gonna make it through – cut a little here, cut a little there – we’re here to stay”

Greg Wood of Village Auto Werks. Photo by Andrew Mayo.

Transportation and food are necessities, but some luxury businesses in Raleigh are also doing well. Dawn Bender of The Glam Lounge, a local salon, said “people are still coming in, but waiting an extra week between appointments”. Even so, their business has picked up recently. Across town at the Rather Unique barber shop, owner Chris Gillette has seen a similar pattern: “instead of coming in every week, people are coming every two weeks”.

Rich Kilby, owner of Raleigh’s Barefoot Press has seen an increase in orders in the last few months. He attributes this growth to new businesses opening in town and to established businesses looking to reach new clientele. And while he is busy marketing for local businesses, his car is being repaired at Pam Wood’s shop right down the road.

Raleigh has been recognized in the current slump as being a “recession proof” city, according to a recent Bizjournal study. The paper also recently ranked Raleigh as being the “best place to start a small business”.Similar Posts:

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