Recession-Proof Your Business with Government Spending Data

As the economy slows down, it seems like everyone’s battening down the hatches for a recession. There’s a lot of doom and gloom in the press right now about reduced spending in 2008. The recent economic downturn has spooked a lot of people, many of whom are wondering: is it possible to build a recession-proof business? There are many steps to be taken to protect your business from the difficult time ahead, but when the time comes to recession-proof your business, government spending research can be a big step in the right direction.

The U.S. government purchases billions of dollars in goods and services every year. Even in a sluggish economy, government agencies still need the supplies and services that keep them going. In fact, a new survey from Onvia reports that 80 percent of purchasing officials plan to maintain or increase government spending levels in the year ahead compared to 2007. A recession-proof business needs to be able to leverage this kind of government spending data and make smart decisions about the government contracts it targets.

Government Spending Data Highlights

Highlights from the Onvia Government Procurement Outlook include:

• 43 percent of the government buyers surveyed project increased government spending activity in 2008.
• 37 percent of the government buyers surveyed expect to maintain spending levels from 2007.
• Businesses providing services such as architecture, engineering, construction and building supplies will benefit from growth in government infrastructure and construction procurement. Overall, 41 percent of agencies project increased government spending activity on infrastructure, with another 38 percent planning to remain at their current levels, in 2008.
• Government agencies continue to plan for modernization, using new technology for security and privacy initiatives, continuing acceleration in IT procurement. A whopping 82 percent of agencies surveyed plan to increase or maintain IT procurement activity for hardware and telecommunications; 83 percent will increase or maintain IT procurement for software and services.
• School districts are preparing for the largest year-over-year government spending activity increase compared to other survey respondents. Municipal governments, many of which face revenue shortfalls, say they will be more cautious in their spending than other segments.
• The South Central U.S. region (AL, AR, KY, LA, MS, OK, TN, TX) anticipates the most spending activity growth, while New England is projecting more modest growth rates.

Government Spending and the Recession-Proof Business

Obviously, government spending research should be only one tactic in efforts to recession-proof a business. With so many factors affecting the economy, it’s more important than ever to be diligent and make the right decisions regarding government contract work. Having the right data as early as possible, without having to use up valuable head count finding it, is increasingly crucial to success during a recession. Focusing contracting efforts on targeted opportunities, and augmenting those efforts with as much data as possible about the buyer and the competition, may be the key to winning more government contracts in a tighter economy.

Download the Government Procurement Outlook Report.

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