Examine the chart above and answer the following questions in at least 200 words.
The status of New Hampshire’s economy according to past application works, and looking at the building permits chart we see that over the course of the last 8 months, the bar jumps a bit below and a bit above zero, which means that little to no houses/buildings are being built. Recession is around the corner. It is often towards the end of the recession in the United States that New Hampshire hits its lowest points. The timing seems to be lagged a bit, and NH is affected towards the closing months of the United States recessions. Management of Companies and Enterprises, Real Estate and Health Care are the leading drivers of NH top industries. Both Real Estate and Healthcare have been major industries for most of the time the chart shows, vs Management only being important once, maybe twice. As we see online business retail trade goes down, and the data results show that as well. Our company should check over the plans, make sure we watch the inventory of vehicles and parts sold/ to sell, don’t expand our business unless the market goes back up, and don’t hold onto employees that don’t provide necessary services for their paychecks worth. We sell in a regional area, so as long as we can hold out until the economy in NH and New England as a whole goes up, we will be okay.
Question to the businesses A regional economic cycle is not perfectly synchronized with its national counterpart, although it tends to move up and down with the national economy. In addition to the broader national economy, two other factors influence a regional economy: the national cycle of its most important industries and its internal growth cycle associated with construction swings. There are two different perspectives to consider in analyzing a regional economy: when a company sells into a distinct local market and when a company produces in a local market and sells into a national or global market.
Please, discuss how the regional economy affects your business and what you do in response.
Response from businesses
| Business | Response from Business |
|---|---|
| Graponne | We are a regional business, so we are more impacted by what is going on in northern New England. From my perspective, the ’08-’09 recession was not as bad in New England as was the ’90-’92 downturn. New Hampshire was hit much harder in the early ’90’s. Many of NH’s largest banks failed in 1992, |
| Bank of New Hampshire | Our primary operating area is NH, and to a lesser extent all of New England, so regional economic cycles are important. We monitor economic data on the state and regional level – Fed in Boston puts out excellent information – and respond accordingly, |
| Comptus | We have no direct regional sales. 50%+ of our revenue is from International sales. Almost all domestic sales are through large distributors, so we have very limited visibility to regional activity. |