Business establishments create economic activity by buying goods and services. A rising number of business establishments suggests rising opportunities for suppliers of business goods and services. Here are recent six-year changes in estimated numbers of business establishments in the Santa Ynez Valley economic area.

  The economic area had 850 establishments in 2006, and 854 establishments in 2012, suggesting that recovery from the Great Recession of 2007-2009 in number of establishments might have been complete in 2012.

Solvang continued to be the largest business community after the Great Recession. Buellton overtook Santa Ynez as second largest. Los Olivos and Los Alamos continued as fourth and fifth.    

  Rates of change in estimated number of establishments varied by place. Larger changes were in Buellton, Santa Ynez, and Los Alamos. Little or no change characterized Solvang, Los Olivos, and the economic area.

  Gains in Buellton seemed to stem from growth of light manufacturing based upon nearness to the main highway and a substantial supply of water. Slow recovery of construction related industries seemed to affect all communities. Stronger recovery of tourism appeared to benefit hotels in all communities, and to foster new eating and drinking places.  

  Gainers and losers among our local industries in general mirrored national patterns. Above average growth for example was in agricultural industries; professional, scientific, and technical services; and health care and social assistance. Average growth was in manufacturing of nondurable goods; and in accommodations, and eating and drinking places. Below average growth was in construction and retail trade. Observers of the national economy saw these kinds of trends before the Great Recession, during the Great Recession, and in the recovery years afterwards.

  These were business establishments reporting one or more people on payroll part time or full time. About twice as many reporting establishments had no payroll employee. An unknown number of establishments, estimated as about eight percent to ten percent of the total, operated without reporting.

  Please go online to U. S. Census Bureau, ZIP Code Business Patterns (April 23, 2015, and May 9, 2013), for estimated numbers of establishments. See the Website of National Bureau of Economic Research for dates of economic expansions and contractions. See Fernando M. Martin, Winners and Losers in the Great Recession (April 26, 2013) on the Website of Federal Reserve Bank of St. Louis for national gains and losses by industry.