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By the end of 2011, decision-makers are likely to feel that the risk of falling behind their competitors exceeds the risk of committing to an expansion or strategic development plan. Evidence that volumes in many, but not all, industries have regained or surpassed their previous peaks will prompt the decisions to shift from cost-cutting to investment.
Investment increases productivity and therefore, growth. U.S. trading partners' economies are growing, which supports export growth and reinforces the recovery trend in place. While the economy will sail more smoothly than in 2010, some headwinds will manifest themselves from time to time.
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