A new Home Depot that will be built in Mattoon during the upcoming warm months will boost the community’s economy, but may infringe on competing smaller businesses.

Casey Rooney, director of the Mattoon Area Chamber of Commerce director, said Tuesday construction on the Home Depot in scheduled to begin in the next 60 to 90 days.

“We’re very pleased they are coming; it looks like the economy is turning around,” he said. “That’s a very good sign.”

However, Rooney also said smaller businesses will feel the effect of Home Depot and may lose business.

“There’s not a doubt it’s going to impact smaller business,” he said. “They’re going to have to become leaner and meaner and find their niche.”

On the other hand, Home Depot will bring more job opportunities for the 65 Kmart employees who are losing their jobs because of its closing. Once open, Home Depot will provide between 150 to 200 jobs, which will be a benefit for the community despite smaller businesses losing customers, Rooney said.

“Overall we’ll have a gain in the community,” he said.

Smaller businesses, Rooney said, will have to redefine their niche of business as well as developing their service because stores such as Kmart and Home Depot are aimed at volume.

“They have to be more service-oriented,” he said. “There’s people out there who want service.”

Larry Beasley, a manager of Charleston Lumber, said Tuesday he is expecting Home Depot to take much business from lumberyards in addition to paint and hardware stores.

“For a smaller community, I don’t think it’s that great a deal,” he said. “There’s some bitterness.”

Beasley also pointed out that stores similar to Charleston Lumber, 208 Sixth St., are don’t have the help of investors in the stock market the way Home Depot does, which makes it harder to compete with Home Depot.

“We’re individual businesses, we have to deal with banks,” he said. “It’s a little close to home that a way.”

Managers at Carter Lumber of Mattoon refused to comment on the situation.