Taking the Long View
Nov 09
Economists note that this growth indicates the recession actually ended in the year's second quarter, brought about by an increase in consumer spending, residential investment, and strong government spending as a result of the Stimulus Plan. The White House Council of Economic Advisers further noted that President Obama's Stimulus Plan added more than 2 percent to real GDP growth for the July-September period.
Importantly, U.S. manufacturing activity also increased in October at the fastest pace in more than three years. The Institute of Supply Management's manufacturing index registered 55.7 in October, up from 52.6 in September - and the third monthly reading above 50, which indicates growth.
And, for the first time in almost two years, companies increased their outlays for "software and equipment" during 2009's third quarter. Albeit the rate of spending growth was just 1.1 percent, but "equipment and software" is a broad and important category that includes not only computers and software but also medical equipment, industrial engines, autos, planes, furniture, farm machinery, etc. Investment strategists are being so bold to predict that business spending on capital equipment will reflect an annualized rate of about 10 percent for the year's final quarter. All of this increase in demand for their products should lead businesses to hire more workers, but - as we know - that hasn't happened yet.
Nonetheless, more than half of the company executives surveyed this summer by Deloitte feel the U.S. economy will begin to rebound by the first half of 2010, and the consulting firm advised companies to stop focusing on short-term concerns and plan instead for "talent, growth, and structural change so that their business doesn't just survive - it thrives." That being said, our 2010 Corporate Location Directory - and the ancillary information found on CorporateLocationDirectory.com - will be invaluable to those companies that follow this advice, take a longer view, and begin to make new site and facility plans.
Project Announcements
Allegis Group Establishes Jacksonville, Florida, Operations Center
07/02/2022
Boston Scientific Plans Johns Creek, Georgia, Manufacturing-Supply Chain Hub
07/02/2022
The Kroger Establishes Pleasant Prairie, Wisconsin, Fulfillment Center
06/30/2022
Loc Performance Products Upgrades St. Marys, Ohio, Facility
06/30/2022
Lockheed Martin Plans Huntsville, Alabama, Missile System Integration Lab
06/30/2022
EAB Consolidates-Expands Henrico County, Virginia, Operations
06/30/2022
Most Read
-
Area Development’s 17th Annual Shovel Awards Recognize State and Local Economic Development Efforts — First Two Platinum Shovels Awarded
Q2 2022
-
The 2021 Top States for Doing Business Reflect Their Locational Advantages
Q3 2021
-
In Focus: Demand for Industrial Land Surges
Q2 2022
-
36th Annual Corporate Survey: Executives Focus on Labor, Energy, Shipping Costs
Q1 2022
-
Five Ways for Manufacturers to Manage Global Market Volatility
Q2 2022
-
The Evolution of the Megasite
Q2 2022
-
Putting Your Best Foot Forward: Presentation of Incentives Information to the Media
Q2 2022