A reporter for the New York Times asked me last month whether or not I thought the worldwide attention focused on the confused ballot recounting in Florida would have a negative impact on companies choosing to expand or relocate to the Sunshine State.
Sensing that he was probably hoping that I said yes, I replied that, in the near term, most folks would probably wait until the swarm of lawyers, media and political operatives that had descended upon the state went home, if for no other reason than that the odds of anyone finding a decent hotel room, a rental car or a seat in a restaurant were pretty slim at the moment.
In the long run (after the next month or two), though, I told him I thought the impact would be negligible because plant location decisions are based upon business and labor conditions, not upon hanging or dimpled chad. Florida’s tax rates, its physical location, its infrastructure, its work force … these would be the important issues, not the current media circus.
Besides, nobody -- not even the lawyers pressing the case -- seriously believed that the work force of Florida was composed of people not smart enough to properly fill out a simple ballot. Not even my reporter friend believed that.
The economic cycle, not the election cycle, will determine what businesses do, when they do it, and where they do it.
By all indications the economy is in for a rough ride. How rough, and for how long, are separate issues, but let’s just agree that we’ve at least hit a speed bump. And let us also agree that, even in the worst of economic times, most companies will survive, and many will even prosper.
If you’re one of the fortunate ones whose company continues to grow and expand, bad economic times are loaded with opportunity.
For the past several years, we’ve been faced with an extremely tight labor market, as unemployment rates sank to near record lows throughout the country. While this has been wonderful for all concerned, it has also made it more difficult for employers to expand their operations. Eventually, any economic downturn will cause local unemployment rates to rise, thereby loosening formerly tight labor markets. Communities you had formerly written off because of labor shortages may suddenly reemerge on your radar screen.
Likewise, if the situation worsens, companies will restructure or go out of business, thereby freeing up not only skilled labor but also valuable facilities. The ability to quickly move in and, with a minimum of modification, begin operating will be just as important, if not more so, in a bad economy as it is in a good economy. Add to that a “recently available” work force that is used to showing up for work and putting in a day’s work for a day’s pay (a real challenge in today’s tight labor market) and you’ve stumbled upon a major opportunity to expand your company’s growth.
Finally, as economic conditions worsen, state and local governments will begin to offer new and innovative incentives to try to attract successful companies like yours. As conditions worsen, you can generally count on the incentives becoming more attractive, especially if your company well-paying jobs and a significant capital investment.
None of this is particularly earth-shattering wisdom, since it’s not like we’ve never been through an economic downturn before. We have, and every time we do, all of the above eventually occurs.
The trick is to take advantage of it.
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