Often when the Schaumburg Business Association categorizes the challenges of our economy, we focus on the local burdens impacting economic growth with these hinderances coalescing around workforce availability and cost of doing business. However, once a year our perspective shifts from the provincial to international affairs and economic trends with the discussions at the World Economic Forum at Davos 2019.
Thanks to our partners at Jones Lang LaSalle (JLL) the SBA was able to keep up with discussions and insights that occurred during the World Economic Forum. At the close of 2018 there was much uncertainty on the long-term continued economic prosperity locally, nationally, and globally and the conferences at the World Economic Forum reflect that continued suspense. The following summary was drafted with the help of JLL to highlight the noteworthy concepts that emerged at Davos.
- Political Indirection and Uncertainty – In May of 2018 the SBA started noting that the Nation’s politics were starting to impact local economic growth. The initiation of tariffs on foreign goods and corresponding trade war paused purchase orders for a time. This continued back-and-forth and the Federal Reserve’s inflationary measures have given increased concerned of a recession. Add the persistent questions around Brexit negotiation and the recently concluded (for three weeks at least) US Government shutdown there is a strong frustration from the private sector regarding the worlds leader’s inability to address the challenges of our time.
-
- The 4 Industrial Revolution – The convenience and accessibility of technological advancement has significant impacts on the way cities and businesses flourish. Whether it be from artificial intelligence (AI) or the Internet of Things (IoT) businesses and cities are exploring effective ways to adopt these technologies to encourage and sustain economic growth. While the current landscape sees cities and businesses pursuing these technological adoptions independently the keynotes in Davos suggest that to harness the 4 Industrial Revolution to solve the problems not addressed above will require unique public-private partnerships.
-
- The Evolution of Workspaces – The Schaumburg Business Association has discussed workforce and hiring nearly 75 times on our blog in the last year recognizing the stress that the current job markets have on local businesses. The World Economic Forum recognized that in the tight labor market companies are turning to creative real estate and workplaces to be more effective hire and retain quality talent. This discussion will continue to emerge as businesses recognize the value in a creative, open, space that influence collaboration and teamwork and its appeal to workers across generational boundaries.
The World Economic Forum brings together political, business, and global leaders to influence the shape of economies and industries. The dialogues that occur in Davos provide international perspective on economic trends. These trends reinforce the data – both empirical and anecdotal – that the SBA tracks on a monthly basis. A new year brings new challenges, concerns, and opportunities and the World Economic Forum of 2019 espoused each. As we move into the second month of the year the SBA will keep our businesses versed in the latest local and global discussions impacting overall economic growth.
