Wednesday, September 11, 2002

Tristate businesses adapt


Post-9/11 landscape has ups and downs

By Jenny Callison
Enquirer contributor

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        The Sept. 11 attacks that altered New York's skyline have left lingering marks on the Tristate's business landscape, too.

        A few companies, most of them dealing with security, have found increased demand for goods and services. Other businesses have refocused in order to survive.

        “We've seen a 100 percent increase in our business since Sept. 11,” said Scott P. Shaffer , area vice president of The Kreller Group's Business Information division, which performs “due diligence” background research for corporations around the world. “The need hasn't changed, but it came to the forefront as a result of Sept. 11.”

        Here's one example, company officials say: In November, the director of corporate security for a Fortune 500 firm learned that a potential business partner might be linked to the al-Qaida terrorist network. He hired the Cincinnati company to pursue the allegation. The Kreller Group's investigation confirmed that the man was on a list of individuals and companies affiliated with Osama Bin Laden. As a result, the client company ended its business transactions with the man.

[photo] Kreller Group executives John Twomey (left) and Scott Shaffer outside the Hamilton County Courthouse.
(Gary Landers photo)
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        “Risk and ruse are not often obvious,” said John Twomey, executive vice president of The Kreller Group. “What surprises me most is the breadth of the need. We normally figure that these are people in defense and other sensitive industries, but we find that people in comparatively nonsensitive industries have the need for due diligence also, to preserve their reputation and financial security.”

        Kreller's Sept. 11-related projects have raised the company's profile and resulted in more demand for the entire range of its business information services.

        “We're hiring more people and are looking for additional sources of information,” company president Harvey Rosen said.

        Airline troubles have inspired creative responses from some transportation-related businesses.

        Karen Salmon completely rethought her airport transportation service when flights were grounded or delayed after Sept. 11. The president of Transportation Connection in Florence called her core clients, suggesting that they let her company drive them to business destinations within a 10-hour range. This diversification helped her company survive this year's transportation woes.

        “Your business traveler is rethinking travel needs, partly because of Sept. 11 and partly because of the economy,” she said. “I don't think fear is at all involved. It's just plain hassle.”

        Ms. Salmon can provide van or luxury sedan rides to local and regional airports. She said that requests are rising again for road transportation to cities such as Chicago; Memphis, Tenn.; Ann Arbor, Mich.; and St. Louis.

        “A lot of my travelers don't want to waste their time having to go to the airport so far ahead of their flight time,” Ms. Salmon said. “And now the airlines are charging them for changing their return flights, which robs them of their flexibility. They can get things done in a car that they can't do on an airplane or in an airport. And we're flexible.”

        Flexibility for fliers has boosted sales for Franklin Aviation, a charter air service based at Lunken Airport.

        As commercial airline profits have nose-dived this year, the demand for charter flights has taken off, said Lisa Zimmermann, Franklin's charter services manager.

        “You can liken us to an air limo,” she explained. “We're on your time frame. Because of increased lines and increased security precautions, people have to arrive at airports two hours early. Because of the economy, companies are laying off employees and expecting the remaining employees to be twice as productive. We give the business traveler that two hours back, and we fly into small airports that are closer in and less congested than major airports.”

        The charter flight industry as a whole saw a 30 percent increase in business shortly after Sept. 11. Ms. Zimmermann said that growth has tapered to about 20 percent more recently. Franklin Aviation's figures parallel those of the industry.

        “We're up 20 to 25 percent this year, and a large portion of that growth is from brand-new users,” she said.

        Business has never been better at Pete DeLois' Recreations Outlet, based in Mariemont.

        “This is the best year we've ever had,” Mr. DeLois said. “You can probably attribute a fair amount of that to the fact that people are taking money that they would have invested in a family vacation and invested it in backyard recreation.”

        Mr. DeLois' company sells upscale play structures, trampolines, basketball goals and playhouses. He said sales of “pretty much everything” have been up about 15 percent since late February.

       



For the nation, a mixed bag
- Tristate businesses adapt
Vacant office space sold
$2M expansion planned for sports complex
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