Economic Indicators: Light Starch

Lately I’ve been interested in how we report and view economic indicators like Housing Starts and Jobs Reports and The Dow Jones Industrial Average. But last night I learned about an even bigger economic indicator: the dry cleaners down the street. I’ve been going there for nearly ten years now, and in that short time it’s only seen two owners.  I got into a long conversation with the owner about the economy — and how dry cleaners actually work. He’s about my age, mid-30′s, and has lived in Chicago since moving here at 17. At 18 he started a company that does the actual cleaning service.  He owns 3 vans and employs 12 guys that drive twice a day to pick-up inventory from 51 companies around town.  He also owns a 15-unit rental, which he’s in the process of selling short.  He said that within a year, 20 of the businesses he services will be closing their doors.  When dry cleaners close, they don’t usually resell the inventory — it’s usually easier and cheaper in the long run for new companies to just buy new equipment.  Huh.  These days customers are wary to pay for price increases for shirts and dresses, and with people out of jobs, there are more jeans and sweatshirts on the streets.  So much of our economy and overall financial health is based on confidence, motion and movement — and if you’re headed on a job interview, head to the dry cleaners and press down that collar.  The news and Congress is starting to say “rebound” more than “recession” — and when it’s officially over, I’ll check back in with Jay over Damen to see if it’s really for real.