Creating Value in the Current Economy
December 6, 2011
The ongoing gyrations in the financial markets have made it clear that the economy has not yet returned to anyone’s definition of normal and may not for some time. While the public sector struggles to digest massive amounts of debt without a significant rise in tax revenue, the private sector has been able to regain profitability through aggressive cost cutting, particularly by means of staff reductions, despite very modest overall growth in the gross domestic product. Corporations are now holding a record amount of cash but are reluctant to invest for the long-term, preferring to adopt a wait-and-see approach. As a result, unemployment remains high even while profits are healthy. This is instructive, and there are important lessons for the A/E/C industry. More …
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