On the road to post-pandemic recovery – what B2B tech needs to consider
By Peggy Tierney Galvin, Chief Strategy Officer
An economic upswing is coming. A big one.
It feels gauche to talk about, when we’re not even close to being done with the pandemic, and surges overwhelm India, its neighbors and other countries around the globe. The fate of the Tokyo Olympics is still uncertain. And the initial move to reopen the economy domestically has created an inflation bump, not enough to alarm the Fed but certainly enough to pinch those buying microprocessors or lumber.
But the boom is on its way. The Biden administration has proposed spending $4.1T –– that’s trillion –– – on infrastructure, families and workers , and has recently announced a record-breaking $6T budget proposal. These initiatives are poised to inject capital into every layer of society, from families and workers to startups and established corporations in all sectors.
This is a watershed for the strength of the domestic and global economy in general and an unmissable opportunity for B2B tech providers.
Much like far-seeing companies used the disruption of the pandemic to modernize and digitize their infrastructure to emerge stronger and more competitive, now organizations in all sectors will have access to capital to update their systems for better connectivity, performance, interoperability, security and efficiency. Tech companies must be ready to make their case to customers and prospects.
But there’s a potential stumbling block that they need to be prepared for.
The Biden administration is planning on paying for these massive outlays by ramping up corporate taxes. We’ve seen in the past that companies often slash cost centers – like marketing – in the short term to course-correct for quarterly earnings. But we know – and you know, as a tech industry professional – that this is a shortsighted and self-defeating strategy. (We even wrote a blog about it.) The successful long-term approach is to invest heavily in promoting your company, its expertise, its technological differentiators and business benefits to your customers and partners when the potential gains are as significant as they are.
This is the time to double down on partner relations, channel relations, brand awareness and making the case for your company.
There are bright times ahead. Will you be prepared?