Editor's Note: Guidance for the “New Normal”
By the end of the first quarter, the U.S. economy contracted by 4.8 percent — the steepest contraction since Q4/2008 during the Great Recession, according to the Bureau of Economic Analysis. How should businesses respond to this crisis?
Q2 2020
At the end of the first quarter, the U.S. economy contracted by 4.8 percent — the steepest contraction since Q4/2008 during the Great Recession, according to the Bureau of Economic Analysis. How should businesses respond to this crisis? In this issue, several consultants to industry have provided our readers with some advice. Specifically, Kate Crowley and Jeff Jorge from Baker Tilly provide an approach for “now, next, later.”
The “now” strategy focuses on financial considerations, i.e., getting the capital your business needs; reexamining supply chains and inventory; and strategic planning. “Next” come plans for sustaining business for the medium term. And strategies for “later” include preparing your company for the economic recovery, including considering strategies for perhaps reshoring or near-shoring some of your supply chain.
As the economy begins to re-open, there is also the question of putting the millions who have been laid off or furloughed back to work. Managers should rank workforce openings based on their potential economic and strategic impact, according to Kent Cornell of UHY Advisors. SSOE Senior Project Manager Michael Vetter says it’s also important to for companies to make sure their employees are — and feel — safe on the factory floor.
Ways of operating may never go back to the way they were, according to economic modeling firm Emsi, so businesses need to prepare for a reshuffling of the workforce, with some employees moving into newly created or significantly altered roles. Importantly, those companies that have received incentives based on job-creation and investment numbers, may now need to go back to incentive-granting authorities to renegotiate terms.
Go to our "COVID-19 Response" coverage to read more about incentives renegotiation and other ways the COVID-19 crisis will affect business operations. Highly regarded consultants to industry present their views on how companies — and taxing authorities — should prepare for the “new normal.”
As we continue to navigate these uncertain times, Area Development will continue to provide our readers with information to help guide their site and facility planning needs.
Project Announcements
Avail Enclosure Systems Plans Kent County, Maryland, Operations
03/13/2025
Frontier Lithium Plans Thunder Bay, Ontario, Canada, Chemical Production Operations
03/10/2025
Germany-Based thyssenkrupp Materials Plans Santa Teresa, New Mexico, Operations
03/10/2025
Triple Point Security Plans Salt Lake City, Utah, Operations
03/10/2025
SIXT USA Plans Tulsa, Oklahoma, Operations
03/10/2025
ViDARR Plans Virginia Beach, Virginia, Manufacturing Operations
03/10/2025
Most Read
-
The Workforce Factor: How States Are Competing to Build Tomorrow's Talent
Q4 2024
-
NEW NIMBYism: A Threat to The U.S. Economy
Q4 2024
-
Designing Beyond the Assembly Line
Q1 2025
-
Microsoft-Three Mile Island Deal Could Signal Path for Nuclear Power to Strengthen Partnerships with Big Tech
Q4 2024
-
Industries Look for Employees in Nontraditional Spaces Amid Labor Shortage
Q4 2024
-
Forging Solid Foundations
Q1 2025
-
Why Decarbonization Goals Start with Site Selection
Q4 2024