Alle-Kiski Valley businesses caught in government shutdown
As the White House and congressional Republicans play chicken with the national economy, Alle-Kiski Valley businesses are feeling the pressure.
The Valley's private industry is heavily comprised of construction, manufacturing and engineering firms, with government contracts accounting for a significant portion of their revenue.
Several local businesses relying on that revenue are finding that, 11 days into the federal government shutdown, some agencies are defaulting on their contracts.
Vere Inc., a New Kensington-based laboratory-equipment manufacturer, holds contracts with a handful of government agencies, including the Department of Defense and the National Institutes of Health.
Owner Gerry Vaerewyck said his company is sitting on $25,000 worth of inventory after the agencies custom-ordered products and defaulted on the payments.
“We put the time and money in,” Vaerewyck said. “We had the products ready and the delivery on schedule, and then we get the calls that they can't check or bill them.
“We fulfilled our end, then they arbitrarily said they're not going to honor the contract.”
Lt. Cmdr. Nate Christiansen, a spokesman for the Department of Defense, did not respond to an email requesting comment.
An automated message at the National Institutes of Health said staff “can only handle inquiries regarding patient care” during the shutdown. “All other callers should call back after appropriations are enacted.”
Vaerewyck said he can't sell the products to anyone else because they're custom-designed for those agencies. Vere makes laser research equipment that's uniquely tailored to client demands, he said.
Vaerewyck, a West Deer supervisor, expects the government to pay when the shutdown is over, but said his business is suffering in the meantime.
“We need that money just to cover our monthly overhead and it's going to be tight,” Vaerewyck said. “Even if (the government) opened tomorrow, we still probably wouldn't get paid for another month.”
Another New Kensington business owner expecting pay delays is Peggy Carpenter of CP Environmental Group Inc.
An environmental consulting firm, CP's sole government client is the Army Reserve's 99th Regional Support Command. Carpenter wouldn't say what her firm does for the unit, which has a presence throughout Western Pennsylvania, but said it's been deemed an “essential service.”
Carpenter said that means they'll get paid through the shutdown, but the speed of receiving those payments is bound to change.
CP has successfully submitted 15-day expedited payment requests from the Department of Defense after each invoice in the past two years.
Carpenter said with more furloughed government workers, the agency likely won't have the manpower to fulfill the requests promptly. She is expecting payment at the end of the 30-day allowance period.
“Fifteen days may not sound like much,” she said, “but for small business, cash flow is king. It's essential to survival.”
Jeff Stahl, general manager of the Clarion Hotel along Tarentum Bridge Road in New Kensington, also works with the Army Reserve and has felt the shutdown's effects.
The hotel has sheltered the 340th Engineer Co. for nearby training sessions on a monthly basis in recent years.
The 340th accounts for about $1,000 of the Clarion's monthly revenue. The hotel won't see that $1,000 in October, said Stahl, who was told cutbacks are preventing the unit from staying there during the shutdown.
Stahl was unclear whether the Army cut the training altogether, or if the soldiers would commute to the drills. Calls made to Army Reserve spokeswoman Capt. Maryjane Porter went unanswered.
Stahl said he hopes the soldiers return in November.
“It's only a few rooms, but it's a $1,000,” he said. “We're just going to try to fill them. Right now, with the shutdown, they're empty.”
Braden Ashe is a staff writer for Trib Total Media. He can be reached at email@example.com.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Butler organization seeks answers for unexplained phenomena
- Alle-Kiski Valley municipalities to re-evaluate how to pay for police protection
- ATI picketer injured at Harrison mill
- Arnold bakery reopens at is new ‘old’ location
- ‘Banshee’ props, inventory up for sale
- Grandview Upper Elementary in Tarentum marks 100th anniversary with open house
- Union files lawsuit against ATI
- Federal court ruling could have impact on New Kensington-Arnold school monument
- New Kensington physician fought for social justice
- New Kensington-Arnold School District officials to discuss anti-bullying proposals
- Changes coming to The Clarion Hotel in New Kensington