Recession's Impact on Consultants May Reflect Wide Variations in Cities
A new report by the Brookings Institution may offer a solid explanation for a phenomenon that I’ve written about in recent blogs and noted by many IECA members: the dramatically varying impact of the recession on consultants’ practices, with some reporting “best year ever” and others reporting declines of 40% and more.
The new study surveys the 100 largest metropolitan areas and ranks the cities from strongest to weakest economic performance based on six key indicators, including unemployment rate, housing prices, foreclosure rates and wages.
Focusing on areas where IECA membership is strong, several come out near the top, suggesting a strong economy even during the recession. Among these metro areas are:
San Antonio, Austin, Houston and Dallas, TX
Baton Rouge, LA
Washington DC/MD/VA/WV
Harrisburg and Pittsburgh, PA
New Haven, CT
Rochester, NY
Of course, some areas where IECA consultants are found are fairing very poorly with a sinking economy. In these areas, consultants may be experiencing a particularly difficult year. These include:
Riverside, Oxnard, Sacramento, Stockton, Fresno, Modesto, and Los Angeles, CA
Detroit and Grand Rapids, MI
Palm Bay, Miami, Cape Coral, Jacksonville, Lakeland and Tampa, FL
Las Vegas, NV
Youngstown, OH/PA
Providence, RI/MA
Looking at the figures for a few other cities:
Philadelphia, Boston and Hartford, CT are fairing better than average
Baltimore, Seattle, Charlotte, St. Louis and Chicago about average
Cleveland, Cincinnati/Louisville, Portland, OR and San Francisco are all below average
While such an economic report card can’t explain everything consultants are seeing, it may help to explain some of the regional differences we see and seem certain to suggest a more sluggish recovery in the more deeply impacted communities.
Link to the study: http://www.brookings.edu/metro/MetroMonitor/overall_performance.aspx
Posted by Mark Sklarow, Executive Director, IECA
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