Changes abound

Edward H. Bastian, president and CFO, Delta Air Lines

“As America’s corporations deal with immediate tightness in the credit markets and the potential for global recession, there is a key differentiator between companies that are prepared to deal with crisis and those that are not —- business plans that can withstand difficult economic cycles.

Since emerging from bankruptcy in 2007, Delta has been diligent in making the tough calls to ensure we are first movers to respond to shifts in the economy. Earlier this year, Delta became the first airline to adjust domestic capacity ahead of an unprecedented fuel price spike and growing economic crisis. We were the only airline to successfully sign a deal to acquire another airline. And when our merger with Northwest is complete, Delta will become the only U.S.-based airline to offer customers a truly global network that provides access to every major business market in the world on a single itinerary.

Delta customers and employees recall the painful but necessary lessons of our bankruptcy filing earlier this decade: Never let the market get ahead of you and always be willing to be first in making decisions that position your business for the next downturn. Today, Delta is ready for whatever economic conditions may be ahead, thanks to our commitment to taking quick, decisive actions to protect the company from any economic storm. This is our duty to our employees, customers and shareholders. And we never intend to let them down.”

David Abney, chief operating officer, UPS

“At UPS, we believe in an ambidextrous approach to slowing global economic conditions, one that combines investing for the future with cost control for the present. It takes a bit of agility to differentiate the two, but it’s a critical exercise.

In times like these, we’re challenging our people to take a fresh look and improve every core process in the company. We’re also evaluating the right opportunities to invest for our future. New air hubs in the U.S. and China, advanced technology that enables the creation of unique products and new types of alternative fuel vehicles are just a few examples.

UPS is positioned for long-term success —- and must maintain its focus on the horizon —- because the prudence of previous management has created a company so strong that it can continue to invest for the future. It was during another U.S. downturn not so long ago that UPS decided to begin building a global network outside the United States. Today, our worldwide infrastructure, breadth of services and “solutions mind-set” differentiate us from competitors.

Now more than ever, we are finding that businesses are counting on UPS to deliver the stability and reliability that are hallmarks of UPS service. And they’re counting on us to be there in the future.”

Cynthia Jones Parks, president and CEO, Jones Worley Communications, an Atlanta marketing and branding company

This Atlanta-based company, says Jones Parks, named and marketed MARTA’s new Breeze collection system.

“We’ve been seeing this coming for quite a while. I think I’ve been feeling the pinch for four years or so. People still get excited about our projects, but they tend to get put on hold now because of funding issues. A lot of our proposals are on hold; things take longer to get approved. We have gotten wonderful projects in the course of the bad economy, we just need to see more of them.

We cut our staff back over the last four to five years, mostly through attrition. Over the last five years, we had 16 to 17 employees. Now we have a core senior group of six people. They know how to do lots of different things. And then we use freelancers and partner strategically with smaller or larger firms. That’s worked out very well for us. This is a comfortable size in this economy. There’s a huge amount of efficiency you learn about in an economy like this when resources are tighter. We’re not panicking. You make adjustments and you begin working efficiently in that downsized mode.”

Edwin Worrell, owner, Dollar Smart stores, Buford and Dacula

Worrell has been in business for more than five years at the Dacula store and over three years in Buford. Dollar Smart specializes in toys, gift bags and party supplies.

“For the first three years, we were strictly a convenience dollar store, but the economy changed that. Import tariffs changed and the economy changed, and now we sell things for $1.50 and $2. We’ve changed with the times, and it’s kept us vibrant. I’m thankful. We are doing OK. We’re enjoying the new customer who used to shop at Nordstrom’s and Macy’s. We are increasing inventory. This is my sixth Christmas campaign and, by far, my biggest Christmas inventory ever. My neighbors are struggling, the restaurants and nail salons, and I’m not getting the walk-around traffic I once did.”

His customer base remains the same. “The conservative, family-oriented, affluent woman —- that’s my client and that’s who I build inventory to. In good times or bad, she has to do that school party, that church event. And she has to make her money work.”

Doug Bond, owner, San Francisco Coffee Roasting Co.

Bond and his wife, Tanya, an Atlanta native and Georgia Tech graduate, own two coffee shops in Virginia Highland and one in Candler Park.

“As far as coffee goes, the numbers are down a little. Our per transaction is down a little bit, from $5 to $6 down to $4; that means, for example, if you usually drink a $4 vanilla latte with a double shot of espresso and get a scone to go with it, maybe you’ve dropped the scone or switched to a $2 coffee. Amazingly enough, we’ve kept our employees and had no layoffs; my wife and I know the kids have to work. The counter is still busy, still active. It’s going all right.

Our biggest problem is our suppliers and the cost from our suppliers. Everything has gone sky high. Our suppliers say it’s because of gas and petroleum. Paper cups have gone up in price. Also milk. Milk prices change like gas prices: One day it’s $4.25 a gallon, the next week it’s $4.95. You have all those fluctuations. We have not raised prices in a year and a half. It’s in discussion to raise prices, but for a small business like ours it’s a very risky thing.”

Charles H. Green, president, Sunrise Bank of Atlanta

Green is also chairman of the Fulton County Arts Council.

“Our community bank has been impacted by lower interest rates —- an unprecedented 4.25 percent drop in the federal funds rate over the past 12 months. Since variable loan rates fall faster than fixed-rate deposits, the bank’s interest margins and profits have decreased. This means less money is available to invest in new loans, additional services and community support.

Because Sunrise Bank of Atlanta has adhered to the sound fundamentals that guide our business, we have not been involved in the quagmire of subprime mortgages. In addition, our approach to banking is based on personal and professional relationships with each of our clients. Instead of losing deposits to other banks, we are receiving new deposits because our customers feel secure. Instead of charging off massive loan portfolios, we are working constructively with our business clients in this difficult economy.

Being a young bank, I am pleased that our business plan is working well since it is not predicated on selling our bank. The nature of community banking is to grow with and be a partner with its community, which has allowed us to hold our own in these interesting times.”

Kevin Ashford, owner, Catered Cakes

Ashford has been in the cake-making business since 2002. He has no storefront and conducts business by Web site (www.catered cakes.com).

“I’ve seen business slow down but not come to a halt. More people are asking for basic cakes now, with less frills. They’re cutting back on accessories. My cost of goods has gone up, especially milk and butter. I may not be selling as much product, but I’m trying to make up for it with more seasonal cakes. People are still looking for a reason to feel good about themselves. They’re still celebrating birthdays and anniversaries.”

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