Economists know to a surprising extent, countries, communities and their companies can impact how deeply recession affects them.    Halifax will dodge some of the worst effects of this economic storm, in part because of our very stable economic structure and in part because of our confidence in the future.  This doesn’t mean that governments and business can sit back and ride this out.  Both need to take specific actions now to lessen the impact of recession.

We have a big stake in how governments approach recession.    The Federal budget of late January could provide some needed stimulus. However, since most infrastructure spending flows through Provincial and local governments our local leadership will have to buy in.   If governments take advantage of highly leveraged infrastructure opportunities and resist the instinct to cut spending, we will weather the recession well and move to growth towards the end of this year.

Business also has to play a role.  Over the last 4 years, the Greater Halifax Partnership has met with over 1800 business leaders as part of or award winning business retention and expansion program, SmartBusiness.  Some of the best ideas on how to deal with tough times come from our own business leaders. Some come from our ongoing tracking of international business best practices.  This is what we hear.

• Recognize that it’s not the 1990s any more and talent that walks out your door will not be back.  A progressive human resource strategy will secure your most important resource today and make you an employer of choice in the future.
  
  
• Review business plans for opportunities and challenges given current economic circumstances. What was relevant to your business two to five years ago won’t prepare you for immediate challenges or the next growth cycle. Do your homework, make adjustments and double down where your efforts are going to make the biggest difference.
  
  
• Develop an early-warning system to detect problems and challenges.  A good track record, successes and solid bottom line is a good indication of future stability and success, but they are not a guarantee.  Watch corporate outcomes closely.  Attitudes of employees and customers are critical.  Don’t hide the bad news if it comes, deal with it.
  
  
• Work to solidify your value proposition.   Understand what drives profit now and in the future.  Focus on what you do best.
  
  
• See the opportunities and go for them.  This is the worst time to slow down or run for cover.  Now is the time that the best organizations gain market share with aggressive marketing, buy needed equipment and technology at bargain prices and pick up some talent from companies who are more short-term focused.
  
  
• Secure the confidence of suppliers and financial service providers.  Every business owner should be on the phone and face to face with their whole supply chain and also be open to finding alternative sources of inputs and funds.
  
  
• Don’t believe everything you read.  Bad news may seem pervasive, but remember much of the negativity comes from organizations that are using the recession to drive their own agendas.

The Partnership recognizes that confident businesses and confident communities grow faster.  We are working hard to project a confidence message in internal and external markets, be it in person, through the media or in advertising.

Our SmartBusiness initiative allows us to listen to businesses, hear their concerns or issues and solve problems. SmartBusiness partners with over 30 public and private organizations in our community to identify and remove roadblocks to business success.  We are strengthening our economy one business at a time.  SmartBusiness is one reason we are confident about our future here in Halifax.

We have tough and innovative businesses that are relentlessly optimistic, that see great opportunities even in tough economic times. As we enter the eye of the economic storm, it’s important to remember that Halifax will be sheltered from the worst effects, but we can't be complacent.

The Partnership is working with its partners to make sure that we come out of this downturn stronger and more quickly than our competition.  We can help your company do the same.  

Our SmartBusiness representatives are on top of the changing needs of business, especially now given current economic conditions.    We know about the most up-to-date trends, resources, programs and initiatives that can help your business.  To get connected, please contact Sandra by phone at 490-2599 or by e-mail at greaterhalifax.com.

Fred Morley
Executive Vice President and Chief Economist