Conyers business owner Mike Sullivan followed the debt limit drama in Washington closely, and his interest was more than political.
His company, Southeast Sealing Inc., was ready to start work on a job in Colorado worth "a couple hundred thousand dollars" when the customer put it on hold because of the stalemate.
"They just said they're going to wait . . . until this gets resolved," said Sullivan, whose 14-employee firm seals concrete floors in large warehouses, manufacturing facilities and retail shops. "We'd like to get that job going. It's a sizable chunk of money."
With a debt ceiling deal finally approved Tuesday,Sullivan is hopeful the Colorado project will happen. But he and other business owners are concerned about the long-term consequences, especially regarding the nation's rising debt, and they remain cautious.
Frank Mutz, owner of Moncrief Heating & Air Conditioning in Atlanta, said his company held off on a planned hire during the debate. By Monday, with an agreement near, "We moved ahead because we felt we were out of the woods."
Still, he said, "I am worried about the long term."
Brian Mayfield, owner of Techquidation Inc., a Marietta company that facilitates the repair of cash registers and bar code scanning equipment, said the showdown didn't affect his business directly. Yet, he added, "There's been an obvious impact on how I approach my business. I'm being very reserved."
For one thing, Mayfield said he put off adding a fifth worker to his crew of four.
His concern going forward: too much government borrowing.
"It definitely makes me nervous," he said. "I don't stay in business by spending more than I take in."
For large corporations, reaction to the debt crisis can be different.
Craig Monaghan, president and CEO of Duluth-based Asbury Automotive Group, which runs auto dealerships around the country, said the company has strengthened its balance sheet since the recession, kept a large amount of cash on hand and maintained ample liquidity.
"So, when we see a short term disruption like this, it's not an issue for us."
But he noted that consumer spending hasn't recovered to pre-recession levels, and he said one reason is "an increasing concern about the fiscal health of this country. . ."
Many business owners are anxious, and that's not good, said Rajeev Dhawan, director of the Economic Forecasting Center at Georgia State University.
"If you're not sure what's going to happen, you hold back from expansion," Dhawan said. "You don't want to invest today if you're worried that revenues won't be there tomorrow."
Dhawan said that if the economy was stronger, political events like the debt ceiling debate probably wouldn't affect businesses much. But, "when the economy is fragile, these kinds of irritants become more important."
A report released Tuesday, "Economic Implications of the Debt Ceiling Compromise," from Wells Fargo Securities Economics Group, said the deal "will help to reduce some uncertainty and alleviate some of the pullback in hiring and consumer spending that occurred in the last couple of months."
Longer term, though, cuts in federal spending will prove to be a drag on economic growth, it said.
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