Integrator BusinessBy: John Honovich, Published on Mar 16, 2009
SDM posted an extensive discussion with US integrators on how their businesses were fairing in the recession. It's a long article but well worth the read. One theme is that some integrators are doing better than others based on certain techniques or niches that they are in. A second theme is that integrators are hopeful that the economy will rebound soon. The third theme is a shrinking pipeline. While many integrators report projects in progress today, those are projects commenced or budgeted before the bust. A key worry for integrators is what projects come next. This is where I see the increased risk. Even if you assume that the economy is going to start growing in the next few months, capital spending tends to lack general economic recovery. The reason is that businesses are reluctant to make investments until they feel more comfortable about long term economic stability. We should pay close attention to the rate of projects this summer.