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I work in the information
technology sector, and the economic downturn that is called a ėrecession' elsewhere
is viewed as a ėdepression' in IT. A lot of it can be blamed on the artificial job
market build-up caused by Y2K and the dot-com craze. This artificial market imploded
and left many jobless. I worked as a consultant during 2000 and 2001. Jobs were plentiful
and contract workers could be choosey. In late 2001 and heading into 2002 the boom
lowered and the jobs started drying up, so I swam for shore and sought steady employment.
I am very happy with my choice and love my job/company.
Rob Sobkoviak,
JO'90
Senior associate, Discover Financial Services
Within the advertising
community, the effects of 9/11 and the ensuing economic downturn have impacted our
industry. Client spending and fee income was cut back due to a dramatic drop in tourist-based
activity. This ripple effect reached out and touched most every client as their spending
took a hiatus to assess the damage. In a market like Orlando where tourism is king,
business took a sharp decline. Layoffs were rampant in the theme park arena, which
caused a great deal of panic throughout central Florida. Revenue at most every business
in the state was negatively impacted. However, six months later, the worst appears
to be over. The theme parks enjoyed some of their highest attendance figures over
the Easter weekend (and are once again hiring) and the airlines are again packed.
Optimism is back in our vocabulary and clients are beginning to return to the marketplace
and make up for lost ground. Assuming no additional worldwide tragedies of the magnitude
of last September, the balance of 2002 should be positive.
Jeff Sternberg
Executive vice president, Fry Hammond Barr
I work in human services
and an economic downturn means that the local demand for counseling and credit counseling
increases. We have recently seen record numbers of clients in both of these departments.
(We also continue to see increasing numbers of Meals on Wheels clients, but that
is more related to demographics than economic factors.) One of my specific responsibilities
is fund development and this tends to be more challenging when potential donors are
facing economic difficulties.
Denise (Duncan)
Ganpat
Fun development coordinator, Family Services
In the radio business,
we live and die by radio advertising sales. After the attack on September 11th --
nearly three-quarters of our advertisers pulled their advertising for the few weeks
afterwards. Now six months later, radio as an industry is rebounding nicely. Come
on America... travel, shop, spend money... that will turn our economy back around.
Emily Andrews
Director of marketing and communications, 105 Radio
Let me put it this
way: Now, at cocktail parties, instead of asking ėWhere do you work?' we ask ėSo,
when did you get laid off?'
Jacqueline Ross
Former editorial assistant at Family Life, which folded November 2001
Health care is one
of those industries that is not overly affected by an economic turndown. People still
get sick, need hospitalization and want to get better. The current state budget problems
in North Carolina, caused by the economic downturn however are affecting us. We serve
a high percentage of Medicaid people since we are in the heart of the Southern Appalachian
region. The state is cutting back Medicaid funding significantly and so our Health
System will receive even less payment for services than we do now. Currently we receive
just 47 cents for every $1 in charges we bill Medicaid. That will go down to around
40 cents, a big hit on a Health System with over $400 million in revenues and about
30 percent coming from Medicaid sources. My responsibility is attracting philanthropy
to Health System projects and programs through individual and corporate gifts and
grants. We're having a strong year. It is harder to get individuals to make the larger
gifts we became accustomed to during the '90s, but people are still generous and
it is just taking us more contacts to raise the funds. We are in the seventh month
of our fiscal year and are about 15 percent ahead of budget in new gifts and grants.
Bruce D. Thorsen,
JO'70
President, Mission St. Joseph's Healthcare Foundation
The economic downturn
has been felt in several states, including my state of Indiana, for more than 18
months. I know the saintly, God-like national news icons are thrilled with this ėnew'
news, but it's hardly new. So how will it affect my business is not the question.
The question is: How has it affected business? Answer: Terribly. Advertising is down
throughout the region, and we have endured our fair share. I run a twice-weekly free
newspaper, and it was not a pretty year. At least we didn't resort to major discounting
such as the local daily did, so that organization wound up with less inches for even
less money.
Scott Trauner
The economic downturn
has already had an impact on the entire journalism industry. Advertising is down;
companies are cutting corners, which means not hiring new employees because there
is zero growth. My specialty is web publications and I've resorted to applying for
assistant positions and registering at temp agencies that aren't related to anything
I studied in school, just because I need to find a job. I'm even considering returning
to school to learn a new trade.
Roxanne Peterson
J'01
As a graphic designer
for a commercial offset printer, I've already seen what economic downturns can produce,
and the effects were seen long before the elections of 2000 and 9/11. In short, when
industries are seeing their numbers sink, one of the first things to be cut is advertising.
That new brochure doesn't have to be printed; that new national campaign doesn't
have to be so elaborate; can we do 2-color instead of six; etc. Luckily, our shop
makes most of its business on the necessities, anyway. We've still had to pare down
the staff, and new equipment purchases have gone on hold. But we'll survive.
Kelly Prescott
Graphic designer, Signature Printing, Inc.
As a music journalist,
I really have a hand in two industries: corporate communications and the record business.
Corporate communications hasn't been hit that hard as far as I can tell because the
demand is still there to get the news and services out to the readers and people
who need them. On the other hand, the high cost of CDs, the CD-burning trend, the
advent of affordable mp3 players and a generally bland selection of artists and recordings
in mainstream music have resulted in a 10-percent loss for the record business.
Mark Harbeke
Music publications editor, Visionation, Ltd.
In technology PR,
especially on the West Coast, the state of the economy has already taken its toll.
Technology companies are downsizing or evaporating, along with their PR budgets.
Over the past two years, we've seen several agencies of all sizes close, become acquired
or enact large-scale layoffs. The result for practitioners is that unemployment is
rampant. Many have abandoned their search for work in public relations, and are forced
to resort to positions for which they are extremely overqualified. The same phenomenon
is happening in the media: ad revenues are down, leaving less space for editorial
content; which can blur the line between advertising and editorial. Consolidation
and closing of magazines is also common, especially in technology-focused trades.
The overarching result of this activity is increased competition for coverage --
and the competition may not be fair. The silver lining to these parallel situations
is that the cream (of technology and PR) is rising to the top, extracting the unsound
businesses and poor PR practitioners, which have damaged the credibility of both
industries. I am optimistic that the economy, and the technology PR industry, will
turn around, but it will take time to correct from the excess of the late 1990s.
Jaimee Vetter,
JO'99
Account supervisor, PR.com
I work for an advertising
agency that focuses specifically on travel, hospitality and entertainment (clients
are hotels, conference planning companies, tourism, etc). So after Sept 11, we were
hit hardÖ very hard. Literally overnight, we went to almost a total standstill. Budgets
were pulled for the rest of the year. The fourth quarter of last year was a big struggle,
no one was traveling and our clients were really taking a focused look of where their
advertising dollars were being used. But first quarter this year, our clients were
ready to get back into the swing of things, and are all approaching it differently.
They want expert advice on how to spend their advertising dollars. So my company
has seen a major increase in work, we are becoming a strategic partner with many
of these companies and helping them through these tough times with our advertising
and marketing efforts.
Jennifer Jahde
Bedell
Art director, MMG Worldwide Advertising
The public relations
industry has been hit hard. Many firms were heavily dependent on the technology sector
and found themselves unable to successfully establish new practice areas after the
dot-com fallout. As a result, there has been significant downsizing and industry
consolidation. In my opinion, the most stable PR practice areas (both in the current
economy and over the long-term) are in healthcare, public affairs and investor relations.
Lonny E. White,
JO '99
Analyst, Ashton Partners
Since our business
is supported by major advertisers and their agencies, we've clearly seen a slow down
in the willingness of those companies to adopt and implement our commercial broadcast
verification services. However, there are a number of indicators that this ėshort
and shallow' recession is coming to an end. Our company is well positioned to capitalize
on the increased focus on tangible advertising results. Therefore, we are making
plans to increase staff and create new offerings to satisfy the needs of the nation's
top brands.
Paul LeFort
West Coast director of sales, agency/ advertiser services, Verance
As a freelance editor,
I may have an advantage over those working in traditional publishing jobs. Right
now, I have to turn jobs away. And if times get tough, I can always go scrounging
for more work. So far, the groups I work for seem to be unaffected; yet my husband,
kids, and I are preparing for worse economic times by simplifying our lives and getting
rid of debt.
Amy (Prange) Spencer,
JO '83
Freelance editor, Edit United
The advertising industry
has been hit extremely hard by the economic downturn.
It's the worse recession I've experienced since graduation and I've seen some tough
ones. It makes the late 80's/early 90's look like a love-fest. We've been forced
to run extremely lean, spreading work out to all remaining employees. We made our
staff adjustment early last year and haven't been hiring since. The problem is those
left are getting burned out. We see the light at the end of the tunnel, however.
We've been extremely busy since
January '02.
Robert J. Goranson,
JO'69
Partner, account strategy and planning, Mobium Creative Group
While I do not represent
the golf industry per se (the USGA represents the game), the industry has clearly
been adversely affected. Participation is generally down somewhat. Equipment sales
are down. Membership costs in some areas have dropped. Through it all, the game of
golf is healthy, more so than other participation sports. On balance, I'm quite optimistic,
near and long term.
Ron Read
As for the economy
of the United States, not much, considering I am in the Czech Republic right now,
where the economic situation is doing quite well. The Czech Republic has been recognized
as one of the most stable and prosperous of the post-Communist states. The economy
continues to grow, and is led by economic exports from the EU, which the Czech Republic
hopes to become a member of in the near future.
Allison Block,
Freelance writer, Prague Post
In an economic downturn,
advertising budgets are the first cutbacks made by most companies. While spending
on electric media is down, annual sales budgets from radio stations continue to climb,
forcing sales staffs to look beyond just selling spots to satisfy these budgets.
Radio sales executives now need to serve their clients as more of a marketing professional,
providing marketing programs that implement not only advertising, but sales promotion,
as well as grass-roots efforts, and multi-advertiser tie-ins.
Ryan Rusin
Account manager, WTMX-FM
The economic downturn
has had a very powerful impact on the technology sector; it actually began about
March of 2000 and the economy slumped for about 16 months. Then after 9/11, most
Global 200 companies put their IT spending in a complete ėlockdown' mode for all
of Q4 2001; no new spending at all. But, thankfully, things have begun to turn around
for technology companies within the last 60 days as enterprises are once again taking
on new IT initiatives. When companies are investing in their technical infrastructures,
it's a very positive sign for the technology sector as well as the economy as a whole.
Nick Colletti,
JO'77
Director of OEM Sales, Curious Networks
The economic downturn,
which at this point is becoming an upturn, has placed a significant new emphasis
on the word ėaccountability.' I work in the world of advertising and marketing, and
more than ever advertisers are demanding to see the exact results that their marketing
budgets are garnering for their brands. The term ėReturn on Investment' (ROI) is
going to be a mandate for every business segment, whether you're in advertising,
publishing, or research... companies are no longer willing to spend oodles of cash
without knowing how it will ultimately improve their bottom line. They ARE willing
to spend, but the results must be accountable for.
Ben Grill
Research consultant, Sachs Insights
I don't think it will
have any effect on the entertainment industry. No matter what the situation, this
industry always seems to stand tall. I guess people want to be entertained regardless
of their financial situation, or maybe just to forget about it. Plus, most of the
people employed within this industry have so much money they can go an entire year
without working. A little economic downturn doesn't affect someone with millions
of dollars in the bank.
Kelly D. Nass
Assistant production coordinator, "7th Heaven," Spelling Television
There was a 50 percent
reduction of the workforce at my company, as there was a consolidation of the clients.
In the broadcasting industry there has been a massive reduction in the workforce.
For example at a recent gathering of friends, approximately 20 people, only one person
was still employed in the group.
Howard Malis,
Post production editor, Group W Network Services/a Liberty Livewire Company
The lottery industry
has suffered to a certain degree with the economic downturn because consumers don't
have as much extra income. However, in 2001 when the price of gas soared over $2
per gallon in some places, our sales suffered as well. Consumers just didn't have
as much extra cash left over after their purchase as they have in the past when gas
prices were lower. Since a lot of lottery products are sold in convenience stores
where people also purchase gas, our sales were negatively affected.
Diane (Wood) McCool
Publications specialist, Iowa Lottery
If anything, business
has increased! With people having spent more time at home the months after 9/11,
I have seen an increase in my obstetrical practice (you do the math). Also, as the
medical director for two local ambulance services, I have been fielding many questions
about bioterrorism scares.
Dr. Grant Tarbox
Family practice physician, Mayo Clinic/Red Cedar Medical Center
The economic downturn
has had a devastating impact on this country's nonprofit community. Many associations,
federations, etc., already were feeling a negative impact on volunteer participation,
especially meeting attendance, from the economic uncertainty and "profit squeeze"
left over from the previous administration when the tragedy of 9/11 happened. The
gutting of middle management in the 90's had removed a great number of trade and
industry association volunteers and their leaders, while the decline in business
travel kept those remaining at work from participating in business association travel.
Mind you, the nonprofit association segment of the public sector employs more people
than do all levels of government in the United States combined, so as participation
diminishes in nonprofits in general, programs, events and eventually people have
been cut from nonprofits' payrolls.
The future certainly does not look bright for nonprofit associations while we remain
at war, a war that may very well outlive a large segment of our population.
Thomas K. Lauterback
The economic impact
has basically closed the opportunity for recent college graduates to ėgain experience'
in the real world. Currently, quality experience is a mandatory when applying for
even entry-level positions. This is a problem in my eyes. If companies are only seeking
experienced candidates, a degree from even from a highly reputable university such
as Drake is not special enough. I intend to keep searching for a position that will
let me use the skills I obtained from my four-year education, and my numerous internships,
which I felt gained me experience before I graduated. I do realize that the economic
impact is unfortunate for many people around the world, although I feel that my degree
will outweigh the ėdownturn' in the end. Patience is truly a virtue in this day in
age.
Erica Basofin,
JO'01
Server, Zimms Restaurant
Not much. (How's that
for brevity). In light of an economic downturn, which is quickly reversing, marketing
and advertising firms are used more by clients in order to secure what business is
available.
John Carpenter
President, MCM Communications, Inc.
As sales manager of
Dan Schwartz Realty in Phoenix, AZ, one of my duties is to review listing and purchase
contracts. Our volume of activity has been at all time highs for the past several
months. While the luxury home market is suffering, the first time home-buyers are
coming out of hiding and buying in record numbers. The over all activity is on a
sliding scale from first time buyers on the high end of activity to luxury homes
on the low end of activity scale.
George Watrous
Less jobs. More competition.
People starving on the streets.
Katie Young
Associate producer, North Metro Channel 15
The impact of the
economic downturn is that the airlines are no longer paying commissions to travel
agencies. In order to survive, my agency has been force to go to service fees, something
I have avoided the last 10 years. The direct economic impact has been about a 30
percent decrease in income. The result of this will force approximately 20 percent
to 40 percent of small independent travel agencies to close their doors within the
next year.
Nancy (Zapel)Chavannes,
JO'67
Executive vice president, Travel Services Unlimited
As a marketing communications
studio, the current economic swings have not had a significant impact on our business.
We see some of our clients refraining from excessive expenditures, but see others,
particularly our agribusiness clients, becoming more aggressive in their marketing
activities.
Nannette Rodríguez
Principal, Viva! Communications
As a young journalist
looking to take the next step in the television world, the economic situation is
making it next to impossible to move around. Several quality newsrooms are dealing
with hiring freezes and layoffs. It's scary to the point at which you feel lucky
just to have a job.
Sarah Stokes, JO'00
KVRR-TV
I'm an ag writer.
Agriculture's economic downturn preceded the one experienced by the rest of the nation.
It shows no signs of letting up.
Candace Larson
VistaComm
One would think that
since I am a high school teacher in the public schools system that I would not be
affected by the economy. Unfortunately, our state, like many others, has been cutting
taxes over the last 10 years. Now that the economy is not doing as well, the state
faces a huge deficit, but those in the State Legislature do not want to raise taxes
and risk losing upcoming elections. As a result, my school district is facing massive
cuts in staff and programs, as well as larger class sizes.
Sherri Wilcox Crawford
English teacher, Shawnee Mission North High School
My advertising business
of 30 years has been less affected than some because I've been able to attract and
retain clients of both product and service marketing needs. That doesn't mean that
this period has not been tentative. I would say that July of 2001 was the turning
point for MacNaughton Graphics.
Luther E. MacNaughton
Founder, MacNaughton Graphics
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