"They have debt problems and many are facing going bankrupt," she said.
Ms McCaskey runs a Facebook training company and said the downturn had been noticeable in the past five to six years.
"The reduction in FIFO workers has had a domino affect," she said.
Get in front of tomorrow's news for FREE
Journalism for the curious Australian across politics, business, culture and opinion.
READ NOW"There is less money to spend in our community.
"Retail has been affected with people making their purchases online.
"Even with dentists, people are looking overseas because it's cheaper.
"Services like plumbers and electricians seem to be fine."
Ms McCaskey and her friend Carol Frieling started Rockingham Business Sundowners in a push to encourage business owners and customers to shop local.
"We want people to do business with people they trust," Ms McCaskey said.
"People should buy local; we have great businesses here in Rockingham.
"Business-to-business networking is exploding, as are word-of-mouth connections.
"It's all about seeking work for each other and giving business to each other."
Ms McCaskey said Rockingham Business Sundowners did not make a profit and there was a strong emphasis on putting back into the community.
For more details, call 0408 863 331 or visit the Rockingham Business Sundowners Facebook page.