As Economy Steadies, Tech Sector Drives the Recovery
by Webfusion in Tech News on June 11th, 2009 Post a commentRecent economic data from the Federal Reserve’s beige book survey suggests that in many regions of the U.S. a small business recovery is emerging. In particular, five of the 12 regional Federal Reserve Banks reported regional business outlook is beginning to stabilize, as technology-driven efficiency drives the economic rebound.
Digital Delivery
While traditional industries continue to restructure in a tight credit market, there are positive signs from technology companies such as chip-maker Texas Instruments, which revised its second quarter earnings estimates upwards. Innovative companies have been quick to benefit from opportunities in the downturn, as Amazon and Apple have introduced entirely new product lines. In particular, both companies look poised to benefit from a shift to cost savings through digital delivery, as indicated by California Governor Arnold Schwarzenegger’s announcement that the state will transition to digital textbooks in an effort to help balance the budget.

Eco
Energy Efficiency
A recent report from the Pew Charitable Trusts demonstrates continued growth in the “clean energy” sector, which grew 9.1% over the last decade. Even as traditional investments declined, a majority of new venture capital investments last year were in clean-tech companies, which stand poised to benefit from the American Recovery and Investment Act, along with larger tax rebates for energy efficient projects for businesses and consumers.
Although most economists expect the rebound to be slow, restructuring is creating opportunities for agile companies of all sizes to drive the recovery.

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