Examine the chart above and answer the following questions in at least 200 words.
I think currently the status of New Hampshire’s economy is good compared to the U.S.. I do not think a recession is around the corner. Even the industries that have been doing well in Massachusetts are now doing well in New Hampshire. I don’t think NH goes into recession every time the nation does. The two charts do look similar although there are some key differences. Their top industries are real trade, real estate rental and leasing, and health care and social assistance. New Hampshire is developing and growing stronger, being compared to richer states. In the U.S. there are more location quotients in the negative than in New Hampshire. For Comptus it does not seem as though we will go into a recession in our industry any time soon. I would label our industry under professional, scientific, and technical services, and that industry is number 7 in New Hampshire.
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. |