Corridor retailers riding recovery wave

The showroom traffic started to build in February at Gina's BMW, an Iowa City motorcycle dealer.

At Zimmerman Ford Hyundai BMW in Cedar Rapids, it started when fierce winter weather started to break last month.

Many Corridor retailers say they're seeing signs that the economic recovery has begun, as consumers who've been holding back for more than 18 months get into the market.

'It's been very strong from the beginning of February, and I'm very confident this year's going to be above last,' said Jeff Simpson, sales manager at Gina's BMW, 3 Escort Lane in Iowa City. Simpson said sales already are running more than 10 percent ahead of last year, even though sales held up better for BMW than some motorcycle brands.

Mark Zimmerman said he's nearly doubled new-car inventories at his Cedar Rapids dealership, 4045 First Ave.

SE. Overall sales were up 24 percent in the first three months of 2010, with newcar sales up 84 percent and used-car sales down 11 percent.

Ketelsen's RV in Hiawatha is seeing much more activity on its lot than it did in April 2008, owner Gary Ketelsen said. Motor home sales are still sluggish compared with pre-recession levels, but sales of pull-behind recreational vehicles are rocking again.

'It's been good all through the dealership,' Ketelsen said. 'Parts, service - it seems like a much more normal year. It's been more upbeat.' At Billiard & Spa Gallery by Branchini's in Coralville and Cedar Rapids, customer traffic is up, owner Lynn Branchini said. The hot product - swimming pools.

'What we observe is, people held off purchasing for the last couple of years.

They were sacrificing family activities and pleasures and putting them off,' Branchini said.

Purchasers view pools as a form of family entertainment that adds value to their home, Branchini said.

One factor that plays into some of the consumer interest is credit availability.

Lenders have regained much of their appetite for lending, Ketelsen said, although they remain more cautious than before the recession.

Zimmerman said vehicle lease deals are better because the slowdown in sales of new vehicles in the past few years has reduced the inventory of used vehicles for sale. That brings higher resale prices for off-lease vehicles and allows automakers to lease them on better terms.

One retailer that hasn't seen a jump in business this spring was Roommakers Furniture & Flooring, 2020 16th Ave. SW in Cedar Rapids. Owner Omar Igram said that's largely because the 2008 flood brought a surge in demand for furniture in 2009, which has since subsided.

'We're doing fairly good,' Igram said.

The findings of local retailers seem to jibe with industry reports that rail and truck freight, some of the early bellwethers of a recovering economy, are starting to trend up again.

Railroads in the United States originated 16 percent more carloads of freight in the week ending April 17 compared with the same week of 2009.

Carloads are up 4 percent for the year.

The Corridor's largest trucking company reported that freight demand was down during the first three months of the year. Heartland Express of North Liberty said that by the end of the quarter, though, it was seeing signs of improving freight demand, stabilizing freight rates and a reduction in excess capacity.