The economic development profession is not immune to the uncertainties that the New Year will bring, and neither is the site selection business. Together we will wade into a host of unknowns that cannot be charted based on past experience.Most projections indicate that business activity will decrease. This will likely be coupled with lower corporate earnings, increased unemployment and slumping consumer confidence. Not exactly a scenario that suggests an overall robust business expansion pattern for next year.
However, all will not be lost. The mantra for the New Year will be "focus". We will need to pick our targets carefully and pinpoint our marketing activities accordingly.
Business retention will be key. Pay closer attention than ever to what you already have. Don't assume your local businesses are immune to the economic environment. Many companies with excess production capacity will be looking to consolidate operations and will be willing to downsize or walk away from redundant facilities. Once that decision is made it is irreversible.
Corporate offices will continue to expand outward from central cities. Excess space, coupled with high salaries, suggests that major cost efficiencies are achievable through the strategic placement of regional offices.
The first footfalls of outsourced operations returning to the U.S. are being heard, and will increase significantly during the next year. This has been prompted by a recognition of the effect that high fuel prices have on supply chain costs, incidences of poor overseas service center quality, and the increasing uncertainty of the financial systems in emerging countries.
Renewable energy is all the buzz, and there is nothing on the horizon that suggests that this will change next year. New products and concepts will continue to be introduced, and the growth of existing renewable energy companies and new startups will be steady.
And then, of course, there are the old reliables that continue to prosper almost regardless of the economic environment. Top among these are all manner of food processing operations, government activities, and companies with a long term planning horizon.
In addition to the external environment discussed in this newsletter, there are many changes projected for next year in the internal environment of the site selection process. I plan to share these with you in my upcoming webinar on November 18, Site Selection Trends for 2009.
2009 will not be a wash. There is an old saying, "When the going gets tough, the tough get going". Let's make it happen next year.
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