Stimulus Skepticism
Well, I crunched the numbers for my quick economic stimulus survey and the results are unambiguous. Most of you are very skeptical that the American Recovery and Reinvestment Act will deliver tangible benefits to your companies.
You can download the complete report (for free) here:
Stimulus Skepticism: The Impact of the Economic Stimulus on Business Strategies
High level results:
- 72 percent of executives at wholesale distribution, manufacturing, and technology companies expect the economic stimulus bill to have no impact on their company’s business strategies in 2009
- A surprising twenty-one percent of executives claim that the economic stimulus now makes it less likely for their company to invest in growth-oriented strategies
Ouch. The negative effect on business confidence could mute the short-term benefits of the stimulus.
Personally, I’m surprised that so few companies are investing to capture their share of the stimulus spending. My analyses of the legislation suggest that many distributors could directly benefit from the spending provisions in the economic stimulus act.
So, I am partnering with Infor and Modern Distribution Management for a live webcast on March 26, 2009. Get more information here:
The Economic Stimulus Package:
Impacts & Opportunities for Distributors
Please feel free to email me if you have any questions.
P.S. It’s 3/3/09. Happy square root day!
6 comments:
Don't kid yourself. Comrade Obama and his band of merry men are going to take this country into a protracted recession as they attempt to impose their "spread it around" version of stealing from the rich to give to the poor.
Socialism = Trickle up poverty
History shows that smart people will invest in countries that respect and honor capital, not those that punish capitalism.
The glass may be half full here, but by the time the government bureaucracy is through sucking on the financial straw, there won't be a whole lot left for real stimulus.
Adam - I come from the perspective that "government" and "help" are not compatible. We believe we have to help ourselves and no goverment can ever get that right. I am not sure why we expect a government ever could. Health in the economy must begin at the grass roots level - use a stimulous to help the people and let the institutions fail. When they re-formulate in a more competitive format, they will again hire the people and we can get things rolling again. Helping failed institutions is only going to prolong the process - by years!
I am skeptical - very skeptical - but curious enough to check out your webinar.
WalktheTalk - Glad to know that you'll be there.
I generally agree with both comments above, but please understand that I am talking about the actual ARRA versus a political philosophy. The "stimulus" is not stimulating enough from an economic perspective -- too much on social programs, too little on growth-oriented incentives or even direct spending.
Nonetheless, I have been poring over the 1,100 page bill and have identified substantial funds that will be flowing from the feds directly or via the states. IMO, a savvy distributor should want understand what will be spent and then plan how to get their share.
Adam
I agree - and I look forward to your comments on the subject. We have to keep our minds open, even when we may disagree with the general approach.
Sounds like your readers should buy some "Honk if you're paying my mortgage" bumper stickers!
http://www.tngop.org/contribute/incentive/
The paper mills will be flush with orders for new paper for all the regulations printed to qualify for any TARP/Stimulus money.
The government itself does not know the regulations currently and is making it up as they go.(guidelines)
Industrial Distribution has eliminated paperwork for Customers and implemented Cost Savings Programs.Too much paperwork at all levels.
The US Government is so out of touch with Industry as a whole and Biden is a perfect example,llisten to his quips.
Better start learning Manadrin or Russian for the future, or (if you want to work at Mc Donalds Spanish)!
Buy American is impossible with most assemblies or steels these days.South Korea has taken on Quality and won on Autos, Taiwan on electronics, Japan & Germany on bearings.
Look around you and see our manufacturing disappear
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