The economists have spoken; it’s looking like a rough year ahead, with the economic climate getting worse before it gets better.

Business owners and executives can hope the analysts are wrong, but they better not be betting on it.

To get a better feel for what the Inland Northwest businesspeople are expecting in 2009—and in some cases, what they’re doing to prepare—we talked to nine people in nine different industries about this past year and the upcoming one, as it specifically applies to them.

On the following nine pages, read what they have to say. Their outlooks just might help you form yours for the upcoming year.

Banking

During a year in which a global financial crisis came to the fore, Inland Northwest Bank has opened two new branches and has had double-digit percentage growth in deposits, loans and assets, says Randall Fewel, president and CEO of the Spokane-based bank.

Even so, with the cost associated with opening new branches and the Federal Reserve System’s drop in interest rates, the bank’s earnings decreased 35 percent in the first three quarters of 2008 compared with the year-earlier period.

“2009 will be similar to 2008—profitable but not near as good as past years,” Fewel says. “Our best year was 2006, and I certainly don’t see us achieving that level.”

The bank is projecting single-digit growth in loans, deposits and assets next year.

“We’ve talked to a number of businesses who have indicated they’ve had very good years, but they don’t want to take on more debt,” Fewel says. “That impacts loan demand.”

INB plans to build a new branch building at the northwest corner of Sprague Avenue and Progress Road, in Spokane Valley, and to move a branch there that currently is located inside a nearby Yoke’s Fresh Market supermarket. Construction of the new branch likely will start next spring, and the branch will move to its new home late next year. Fewel doesn’t anticipate adding any employees in the new year; the bank hasn’t added any new positions this year, either, though it hired six people in 2007.

Fewel says INB’s projections for 2009 are based on a couple of assumptions. First, the company expects an uptick in the residential real estate market. If that doesn’t occur as expected, the bank’s growth won’t be as good as projected.

Also, Fewel doesn’t expect the Fed to cut interest rates further. If interest rates dip lower, that will continue to erode the bank’s profit margins, he says.

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