2010 Industry Report

This morning I attended the Minneapolis / St. Paul Business Journal’s 2010 Industry Outlook. There were 5 speakers’ representing 5 different industries:

1. Commercial Real Estate
2. Healthcare
3. Banking & Finance
4. Energy
5. Hospital & Tourism

The event was well attended with a mix of large and small business executives. Overall, I would say the presenters did a fine job, but as one would expect most of the 2010 industry forecast was focused on a bleak outlook.

Unemployment is just under 8% in Minnesota is expected to remain at or close to that number for 2010. Most employers (60%) are keeping their workforce as is and only 17%expected to do new hiring for 2010. Housing prices are still down 37% and foreclosures may climb as a direct impact of unemployment. Healthcare is still creeping through the House of Representatives and Senate and no one has the crystal ball on where healthcare will end up….even the people changing healthcare. If you were looking for hope or a “feel good about the future” pep rally this was not the event.

I did ask a question of the entire panel regarding changes in their behaviors in looking at measurement and metrics. That is to say…..have they developed new measurements/metrics to help better manage their business through this dynamic economy? I was searching for what new changes in their behaviors they have adopted.
The answer from the panel (across the 5 industries) were that they are not developing anything “new” in terms of metrics & measurements, but returning back to looking at existing measurements more closely to determine strategic plans and forecast. More of a “back to basics” approach.

The take away I got from the event is that no one is confident in anything other than the economy will remain volatile for 2010 and a conservative approach will remain in play for quite a while. Despite the less than hopeful news about the economy there is still great opportunity. Discount retailers remain in high demand, new businesses are on the rise, and creativity in products and services has seen gains (Example: Tourism has focused on vacation/get away packages close to home).

I look at these tough economical times we live in much like watching the nightly news. Most of the news we see on TV is negative (shootings, embezzlement, job loss, etc.). You can take this information in and hide in your home with a blanket over your head to mitigate the risk of these events happening to you OR you can open your door, enjoy life and deal with the challenges as they come.

This economy is tough…..that’s obvious. The question really becomes “how will you see it?” Is it a time to sound the alarm and hide out or is it a time to get creative and see what opportunities exist?