Expansion Management - Helping Companies Evaluate Future Locations EMInfo.org





 
News Home   News Archive   Search News  

  Means the article is accessible only to our magazine subscribers.

Economic Downturn Impacts Relocation Industry

When companies were asked, "Has your organization reduced its relocation volume?" nearly one-third (32 percent) answered "yes", according to a survey by Runzheimer International.

  [ 1/1/2002 ]    Related Link...  Print This Article  Reprint/License This Article  

The findings were recently published in the industry newsletter "Runzheimer Reports on Relocation." The survey of 44 relocation administrators also found that 79 percent think the numbers of employees being transferred will either remain the same or decrease, while only 21 percent predicted an increase.

"There is no telling what the future holds for the relocation industry," said Nat Workman, senior editor of the Runzheimer newsletter, "especially in the wake of the events of Sept. 11. The ramifications of heightened security throughout the United States and worldwide will play a significant role in governing the movements (relocations) of its citizens."

Will the shift away from large urban centers to suburban offices expand at an even more rapid pace? Will telecommuting become the new buzzword?

Companies Cut Back on Holiday Parties

While the holiday season is upon us, the economy struggles to find footing. Is it any wonder that corporate holiday gatherings are likely to be less extravagant and perhaps more patriotic?

Event planners and caterers say this will be the case - if events are not postponed or cancelled entirely - according to international outplacement firm, Challenger, Gray & Christmas Inc.

Researchers at Challenger, Gray & Christmas Inc. interviewed planning, event and catering firms in New York, Chicago, and Los Angeles and found that companies are spending 15 to 75 percent less on holiday parties this year.

Event planners reported that parties will be more intimate, less flamboyant and will carry more of an emotional tone. Other companies are foregoing gift-giving and donating money to charities instead. Still other holiday parties will include employees only, and no spouses or partners.

"This was a tough year for business well before the terrorist attacks, but these annual celebrations can be important for boosting morale and optimism among employees," said John A. Challenger, chief executive officer of Challenger, Gray & Christmas. "The key for many employers is to keep holiday parties in line with other cost-cutting measures, and with our national struggle against terrorism."

 



 
Expansion Management TV