Avoiding Some Unintended Consequences in Financial Restructuring
The restructuring underway in America's capital markets could have profound impacts on economic development in our nation's communities. Much of the nation's economic success over the last two decades stemmed from the successes of entrepreneurial companies in high technology fields like bio-pharma, software and electronics. Many of these companies were capitalized through Initial Public Offerings (IPOs) issued by New York investment banks. Of the 1300+ IPO deals brought to market in the last decade, we estimate that about two-thirds were underwritten by Goldman, Lehman, Merrill or Morgan. What does the future hold for communities struggling to create jobs as these names disappear or morph into commercial banks? Is there a connection?
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Logistics in a $4/gal World: Reverse Offshoring
The benefits and economics of manufacturing overseas are not as positive today as they have been in the past. The rising cost of fuel is a key factor driving companies to consider moving their operations closer to U.S. consumers. Reverse offshoring, as it's called, is an important trend shaping the selection of target industries in Taimerica's recent target industry studies. Thomasville, for example, announced last month that the company is shifting some of its manufacturing operations from China back to North Carolina. And the cost of fuel is not the only factor: the cost of doing business in places like China is also increasing. McKinsey has noticed this trend as well. Which of the vacant or underutilized facilities in your community would be attractive to a company looking to move closer to their headquarters and markets? |
