As we approach the end of the first quarter of 2024, we have a sense of what the economic outlook is for businesses in Westchester County and the Hudson Valley. Coming off a challenging 2023, businesses are cautiously optimistic that the tide is turning driven primarily by the anticipation of lower interest rates and the leveling off of inflation. However, there are still concerns related to costs, profits, fraud, and hiring.
In the Westchester County and Hudson Valley regions, there has been a lot of growth in multi-family housing which should spur the local economy. Employment continues to be challenging with larger organizations downsizing and others still looking for and struggling to retain the right talent. However, Regeneron’s plans to build out approximately five million square feet of lab space and hire more than 700 lab techs over the next five years in Tarrytown are indicative that the landscape is slowly changing.
As we move into Q2, what should business owners and senior executives be focusing on?
Be hyper-vigilant about tracking the economy. Keep a close eye on what the Federal Reserve is saying and begin strategizing on the impact the forthcoming rate cuts will have on your business. Be ready to determine when to make decisions regarding both purchases and investments. If you are considering buying property or new equipment, you will need to work with your trusted advisors to determine the best financing solutions. Pay close attention to cash flow management and leverage the array of options including credit cards, treasury management products, and lines of credit.
Plan for the company you want to be, not the company you are today. Conduct a comprehensive analysis of the next 12 to 18 months to foreshadow headwinds so you can anticipate what’s ahead and plan accordingly. Look at the bigger picture – not at things in silos or a transactional manner. Growth needs to match up with strategy and solutions, so determine how it fits into your long-term goals. Then, identify the steps needed to manage both short- and long-term growth. Additionally, you’ll want to understand what differentiates you from the competition and promote these factors to current and prospective customers.
Protect your business from fraud. The cost of fraud is higher than the cost to incorporate solutions like Positive Pay – a tool that can alert you to fraudulent attacks against your transactions. Implementing cybersecurity solutions and having the right IT team in place should be a priority. If you are using unprotected email accounts, it is time to make a change. Additional protection steps to consider include firewalls, two-factor authentication, fraud protection on bank accounts and eliminating paper checks by using online bill pay, credit cards and ACH to pay vendors.
Build and maintain trusted partners and networks. Your legal team, accountant and banker should be your closest advisors who you can turn to in good times and bad. Maintain strong relationships with them as they can provide good counsel and help you navigate the future. Additionally, build a network of your peers with whom you can share and learn best practices. Open discussion and collaboration among peers can lead to solutions that can keep your community and industry intact.
While there are many unknowns, this year has the potential to be brighter for many Westchester and Hudson Valley businesses if you invest the time to plan and strategize.
For informational/educational purposes only. The information in this content is not advice on legal, tax, investment, accounting, regulatory, technology or other matters. You should always consult your own financial, legal, tax, accounting or similar advisors before making any financial or investment decisions, or entering into any agreement for Valley products or services.
