Following a global pandemic, Idaho finance executives have redefined adaptability with warp-speed reconfiguration of capital investment plans. With a potential economic slowdown on the horizon in 2023, how can Idaho businesses prepare?
Between supply chain stagnation, rapid inflation, rising interest rates and one of the tightest labor markets to date, Idaho business leaders continue to operate in an environment that many haven’t seen in their professional lifetimes.
While escalating interest rates are no longer a surprise, with each Fed announcement, I’m having more conversations with Idaho business leaders to help them develop creative financing solutions to meet their short and long-term goals.
One short-term goal that many Idaho middle market companies are considering, or implementing, is business automation. Many companies are investing in technology to mitigate the impacts of labor shortages. Some factors to weigh when automating and streamlining operations include:
Solving the supply chain conundrum
Idaho companies experiencing significant inventory challenges and supply chain delays may consider:
Bank on long-term relationships
Now and through all economic cycles, it’s imperative to work with your financial institution to maintain adequate cash flow and strong liquidity positions. Working with your commercial banking relationship manager early and often can help avoid unwanted surprises and offer flexibility. It’s a great time to conduct a thorough financial review, including cash flow projections, and have frank conversations to make any necessary adjustments to loan structures and working capital lines of credit.
Equally important is working with a bank that has comprehensive, industry-specialized capabilities to support your growth over time. This can mean finding a financial partner with industry expertise and premium services like treasury management, investment banking, foreign exchange and wealth management tools.
In addition, borrowers should seek a financial partner with robust capabilities and a proven commitment to supporting your industry over an extended period of time. Your bank should be committed — not just to providing capital at attractive rates — but also to helping you and your company succeed financially.
Idaho business leaders know standing still is not an option. Through it all, our goal for clients remains the same: ensure that their financial future is deliberate, stable and successful — not reactive based on current market variables.
— Brian Cook is Wells Fargo’s Idaho commercial banking leader. Opinions expressed in this article are general and not intended to provide specific advice, recommendations for any individual or association, or an offer to extend credit. The author’s opinions do not necessarily reflect those of Wells Fargo Commercial Banking or any other Wells Fargo entity.