Responding to the Down Economy

By Dan L'Heureux

Much of the perspective on the current economic climate is based on perception.  It’s been reported that corporations are reporting record amounts of cash (two trillion dollars as of mid-July), and yet our economy is in the midst of a recovering recession – on a good day.  The basic problem is uncertainty about the future, and that causes businesses to hold back in purchases, hiring, expansion, and investment.  These holdbacks trickle down to all in the economic food chain, leading to more retention, more holdbacks, more pensive positions, and less spending.  Need I say more?  It’s a vicious cycle, and perception is reality. 

The regional groups with which I work have experienced lower attendance in 2009-2010 – and unfortunately, I doubt we’ve seen the end of it.  The user groups tend to be less affected because of the technical connection to a common vendor, so the “hit” has not been as bad with non-platform-specific groups, both regionally and nationally.  Even so, we had a record-setting turnout for the recent WSTA/CAM-X joint venture, which delivered an outstanding program, a choice venue, and, dare I say, Canadians that like to party (that is, have a good time while learning, networking, and donating a record amount of nearly $50,000 to breast cancer research).

Back to the perception-is-reality theme.  I’m certainly not suggesting we can “will” our way back to prosperity; however, as I’ve said in the past, “Holdback is very effective and/or detrimental, depending on your position.”  On October 2, 2010, there was a published AP story with the headline that a $4.1 billion trade triggered a “flash crash.” The article went on to say that one firm’s computer program set off a panic, sending the Dow down by nearly 1000 points on May 6.  The trade happened to be automated by a computer algorithm that was trying to hedge its risk from price declines.  This prompted 75,000 contracts to be sold within twenty minutes and caused the DOW to plunge by 1000 points in less than thirty minutes.

I do not pretend to be an economist, or even an educated observer in that arena, but I look at the overall doom-and-gloom perspective and wonder if anything can be done.  I’ve been blessed with many things in my life, as I’m sure many of you are also able to acknowledge.  I don’t take a position that I deserve what I have received, but I am indeed thankful for it.  Why look on the negative side?  I’m a firm believer in optimism, not for the sake of ignoring markers, but as an acknowledgement that we have it really good in the USA.

My goal as executive director of the TAS associations is to do what I can to elevate the entire industry while serving my local board’s direction.  Steve Diels, past president of ATSI, summed it up very well with his ATSI promotional tour in 2003/2004 that carried the theme “A Rising Tide Raises All Boats,” and I sense that Mike Fultz, current ATSI president, has a similar perspective.

We all can be the “rising tide.”  Some of the big challenges in TAS are providing frontline quality and consistency, as well as participating in (or having appropriate staff participate in) the various educational offerings.  By doing so, you too can be part of that tide.

Our recent (CAM-X/WSTA) futures panel was optimistic and upbeat in its assessment of the TAS industry, while certainly communicating a dose of reality.  Among the questions and answers discussed by John Ratliff, Chris Bell, James Millman, Terri Paffile, Tom Gelbach, and Brian Gilmore, there was one theme that stood out to me as expressing the ultimate optimism: Quality + Adaptability = Longevity.

Don’t get me wrong – there is no question that there are business challenges.  Although traditional dealings might be down, you can strategize, organize, execute, and show ’em you are better!  Stand out in the crowd.  Respectfully outshine everyone else in service quality, and hold true to your core values.  There is an opportunity around every corner.  Have you trained yourself to look for it?  Or are you still locked into what you have been doing?

I really care about this industry; it is our life and livelihood.  There are many different approaches and opinions; some have merit and others might seem less valuable, but all should be at least considered.  For those who have given me the honor of your participation and support, thank you for the opportunity.  I’ll continue to work hard to make the most of it.

I can only suggest that by working together to produce a quality product and continually striving to improve that product – even by going outside current habits and processes – and then training our eyes to look for opportunity where it might not be seen today, this industry can survive and even thrive.  It won’t be easy, but success seldom is!

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