Examine the chart above and answer the following questions in at least 200 words.
Place your answers here
The status of the New Hampshire economy by the look of nonfarm employees is that it looks as if it’s correcting itself. Why I say this is because we just had some numbers that really shot up with nonfarm employees but now that number has started to correct itself and the last few months in has been trendy with previous recessions we’ve had in the past and looks like one is almost around the corner as job growth is slowing it’s above zero but it’s headed there I feel. The New Hampshire economy similar to the national economy the only difference is that once in 1980 when the United States fell into a recession New Hampshire did not, but that was only one time. With timing however when looking at the 2008 and 2001 recession we lagged the United States. Our job growth started to decline half way through each recession, we were still expanding in the beginning of both of them.
The top 3 Industries in New Hampshire today are Real Estate and Leasing being number 1, then Health Care and Social Assistance being number 2 and Management of Companies and Enterprises being number 3. This has changed bunch over time as of 2019 Real Estate and Leasing was actually number 9, but going back through the years it has mainly stated in the top 3. Health Care and Social Assistance has maintained itself in the top 4 industries in New Hampshire for the last 25 years. Then Management of Companies and Enterprises has just shot up from being the no higher than the 11th most important industry since 2008 and being 13th last year has shot up to 3rd for the first time. That’s actually really interesting to see and to see if this industry continues to grow in the state.
What Grappone should do if a recession is highly likely, like any company they should reduce spending, hold off on any capital intensive projects, hold off on hiring new individuals unless they are necessary for the business, start to hoard some cash, and start carrying less inventory then you typically would. But I would also use some common sense, you know if the local job market though seems to be okay, people are not really getting laid off and people are still buying cars I would do less measures. Versus if you had a bunch of companies in the local area starting to do massive layoffs then you might really want to do some boot strapping and prepare for the worst. I’d suggest doing your own analysis personal of the local situation.
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. |