Channel Insider's Economy Watch

Since the economic meltdown began in September, businesses have slashed spending and jobs to maintain viability. The recession has a multilayered affect on solution providers as it impacts costs and revenues. Channel Insider is closely monitoring economic activity and conditions to provide you with the best insights and guidance. Our Economy Watch is a compilation of the information and intelligence you need to make sound decisions during these challenging times.

 

As Trading Markets Climb, Tech Sector Stocks Struggle The market made it two consecutive winning days with stocks climbing more than 3.5 percent and testing the 9,000 mark on the Dow Jones Industrial Average. Despite this sudden resurgence, tech stocks continue to struggle, last Friday (12/5) closing down 2.6 percent for the week. The biggest loser: Novell, which tumbled more than 11 percent. Few companied fared better. Insights & Analyses Tech Reacts to Nightmare on Wall Street Channel Insider asked VARs, MSPs, IT consultants, IT solution providers and resellers about how the Wall Street meltdown and financial crisis would affect their businesses and their IT customers businesses in the months ahead. Here is what they said. Lenders Say Credit Still Available for Technology Spending Credit may have dried up for some businesses, but three big sources of technology credit say it's business as usual for technology credit. Ingram Micro, Tech Data and IBM Global Financing say their IT solution providers and IT consultants have as much access to credit as before the Wall Street meltdown and subsequent failed bailout. Report: IT Spending Growth Expectations Lower in Second Half  IT hardware spending will likely show low single-digit growth for the second half of 2008, lower than original estimates, in the wake of weak corporate earnings. A recent CIO survey shows more caution in the IT spending environment. Wall Street Woes Undercut the Channel Tight credit, high energy costs and continuing economic blight is forcing end users to cut back IT spending. The result is lower than anticipated revenues and profits for solution and service providers.

Research & Guidance Businesses Slash Spending Across the Board Businesses large and small are cutting their spending—IT, staffing, marketing and sales—in response to either decreasing business or anticipation of lower revenues as a result of the recession. Most Profitable (Recession-Proof) Technologies  The Dow Jones is bleeding billions, but solution providers say key technologies continue to drive strong profitability. Here are the top 10 technologies according to Channel Insider readers. Best Sources for Technology Credit If you balk at the idea of offering financing because it doesn't seem worth the complexity or time commitment, you may want to reconsider. Programs available through a variety of technology specialty financing organizations and IT distributors make it quick and easy to offer this option to customers. Credit Options for Channel Partners and Solution Providers Here are a few of the most basic kinds of credit and finance vehicles available to the solution provider channel and its customers. These are all available through distributors or other technology finance providers.       Jobs & Employment Trends   Tech Vendors Shedding Jobs Quickly IT vendors have eliminated more than 50,000 jobs since the economic meltdown began in September. Many speculate more jobs will fall under the cost-cutting axe before the end of the year. Here's a list of companies eliminating jobs...so far.   Finding Good News in Bad Numbers While the U.S. economy is shedding hundreds of thousands of jobs, the IT sector is adding jobs. Is now the time to retrain displaced workers?    Unemployment Hits 16-Year High; Channel Still Struggles to Fill Jobs Even as unemployment claims hit a 16-year high, IT solution providers say it is still difficult to find good sales people to fill open sales jobs.