Valley Forum: What War Might Spoil Economists have been saying for weeks now that the real roadblock to an economic turnaround is the pending war in Iraq. Consumers are holding back and business plans are being postponed because of the uncertainty it has caused. The San Fernando Valley Business Journal wants to know: If we do go to war in Iraq, what are you anticipating the impact will be on your business and business in general? Boris Smorodinsky General Manager ADS Creative Sherman Oaks A war in Iraq will have no impact on my business. It will have positive impact on business in general, because a war will stabilize stock market and bring down gas price, which in turn will expedite full recovery of our economy. Stephen Woodworth President NetworkOmni Thousand Oaks Our business has continued to grow, albeit we think that the growth has been impacted by the uncertainties surrounding the Iraq crisis. We certainly see it in our customers, and the markets are clearly less willing to take decisive steps until this key economic variable is defined. Since we are a language services business we believe that the demand for our services will not necessarily decline as a result, but we do believe that a sustained effort in Iraq would clearly delay any momentum to an economic recovery. Steven Borick Executive Vice President Superior Industries International, Inc. Van Nuys If the war takes place and is prolonged, the impact on our business will come from the price of energy rise, and the fear of higher long-term prices at the gas pump will sway consumers to not purchase vehicles as much as in the past. A side note is the cost of production could go up if fuel prices in general rise, that is natural gas and electric. Joe McLure Owner Montrose Travel Montrose Irrespective of the length of the conflict, if America goes to war, the travel industry promises to see a dramatic negative impact. Overseas travel for the most part will cease, and, barring a government bailout, more U.S. airlines will surely file for bankruptcy protection. Already cash-strapped intermediaries will have a difficult time surviving, as will many of the industry’s non-airline suppliers. Therefore, in the event of war, expect to see a further dip in our nation’s economic recovery cycle. If we go to war, let’s pray for our fighting men and women to get in and out quickly and come home safely.
