2019 Economic Development Trends: What’s Relevant in the Year Ahead
A new year always brings new questions with it, especially in the world of economic development. Business owners are paying attention to what challenges may come up, and what opportunities could arise. Being at the forefront of economic trends can pay off in the form of growth and increased profits.
The Ginovus team has taken a close look at the issues that will affect your business in 2019, and we’re ready to help you formulate solutions that will help you remain an industry leader. Here are six areas you’ll want to pay attention to in 2019: (click on the icons to learn more)
Bringing Back Apprenticeship Programs
In March 2018, there were a reported 6.6 million job openings, according to the Bureau of Labor Statistics. This is the highest number in over 20 years. Part of the reason for this increase in openings is due to a lack of skilled workers.
In many industries, there are not enough laborers with the needed skill set to fill available positions. This is forcing companies to turn to new methods of recruiting and even turning back in time to the apprenticeship model of skill sharing to reinvigorate their talent pool.
Artificial Intelligence Gains Traction
A newly released CIO Survey report by Gartner shows that the use of Artificial
Intelligence (AI) in business is growing at a rapid rate. Gartner found that AI
implementation has grown 270% in the last four years, and 37% just in 2018.
We expect that these numbers will continue to rise in 2019. As Gartner’s Research Vice President Chris Howard says, “If you are a CIO and your organization doesn’t use AI, chances are high that your competitors do and this should be a concern.”
Interestingly, lack of an AI trained workforce is reported as one of the biggest barriers to AI implementation. We see the growth of AI going hand in hand with the growth of apprenticeships, as the demand for these types of skills continue to rise.
Last Mile Distribution and Warehouses
Online shopping has changed the way America shops, and services like Instacart and Amazon Prime continue to shape the way we do business. Consumers expect free delivery of products within 24-48 hours. This means an increase in the need for “last mile warehouses.”
Last mile warehouses are small local warehouses located in the center of urban
areas. The location of these warehouses allow products to be delivered to
consumers quickly, so companies can meet the high expectations for fast shipping. Though the real estate for these warehouses can be expensive, we expect them to continue to grow in popularity as online retailers battle to ship fast and free.
How Tariffs Impact Growth
Tariffs are one of those things that can potentially have a huge impact on your business, despite the fact that you have zero control over them. The current
administration has put into place tariffs on steel, aluminum, imported solar
panels, and washing machines, and they are considering expanding tariffs on
Chinese imports and automobile imports.
In 2019, business will have to consider the possibility that further tariffs may be enacted that will cut into profits and affect sales. Business owners will have to become strategic about sourcing and shipping in order to navigate the current landscape without losing money or customers.
Slower Growth Ahead
The issue of tariffs plays into a bigger concern about the slowing global economy. According to leading indicators released in January 2019 by the Organization for Economic Cooperation (OECD), the United States and many other large economies are set for a further slowdown this year.
While this news sounds ominous, it doesn’t have to mean a downslide for your
business. However, it will require careful planning and strategic thinking to navigate a possible economic downturn. Optimizing your business now will be key to weathering future storms.
Now Is The Time
Business is moving at an ever-increasing pace and that means companies want to find a place to do business as quickly as possible. Site readiness is more important than ever, and having a site ready to go quickly means managing several moving parts at once.
Navigating The Future
As you review this list of trends, you’ll most likely see some upcoming challenges in the new year, as well as opportunities for streamlining. Whatever lies ahead,
the team at Ginovus is here to help.
We’re globally recognized experts at providing solutions involving:
- location modeling
- site selection
- incentives procurement
- incentives compliance management
The Ginovus team is backed by over 100 years of combined economic
development expertise. We also bring a wide range of expertise including:
legal, accounting, commercial real estate, strategic planning, finance, economic development, government and research.
Our team members have advised and served clients in support of more than 1,600 projects throughout North America and the Caribbean during their careers, offering a level of knowledge, experience, and insight that is unsurpassed in the industry.
To download a more comprehensive version of the 2019 Economic Development Trends, please fill out the form below and you’ll be provided with a link to the PDF.