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Thursday, Mar 28, 2024

Economic Uncertainty Shouldn’t Dampen Optimism in 2012

New Year. Fresh Start. We’re pumped. Our 2012 editorial calendar is packed — 25 Issues, 14 Special Reports, 40 Lists and our annual Book of Lists. Four issues will be special editions devoted to a single topic or industry: the Valley’s Public Companies (March 5), Manufacturing (August 6), Banking (September 3) and Fastest Growing Private Companies (November 12). As always, we’ll be looking to top our game. The beginning of a new year is always a time for reflection — a time to assess the good, the bad and the ugly of yesteryear — and a time to look for opportunities to change, improve and grow. In this issue, we explored the Valley’s broad base of industries and far-reaching geography to give you the top 2011 highlights across 22 categories and, more important, offer a snapshot of what to look out for this year. Last year was tough for many Valley companies. A lot of businesses were forced to shed jobs and look for other ways to get leaner; some couldn’t survive the economic challenges. Industries such as banking, real estate and retail were especially hard hit, while industries such as online advertising & marketing, health care and technology bucked the trend. Here’s my read on 2012, though keep in mind, I’m a realist who wants to be an optimist: the Valley business community faces an old challenge — economic uncertainty — that has kept progress at bay. In the third quarter we may start to see signs of the uncertainty lifting and that will stir corporate activity and drive very modest business investment and light job growth. It probably won’t be enough to push us out of the doldrums, but we’ll be much more comfortable as we head into 2013. For now, businesses still are deterred from locating in California because it’s expensive and cumbersome. As a result, recovery will take that much longer to materialize. And an anemic banking industry is not helping matters either. With small business unable to use real estate for collateral, getting a loan to start or expand a business is difficult. Without that capital, those businesses cannot invest in equipment or employees. All the gloomy stuff aside, the Valley’s business leaders are a tough, scrappy bunch. We stick together and help each other. A strong sense of community — that’s our wild card. The optimist in me says that’s invaluable and it’ll help us in the coming year.

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