Many VARs worry that, despite predictions by experts that the industry and its businesses will grow in 2008, U.S. economic unrest will make the business climate difficult and may hinder growth.  

The 2008 VARBusiness State of the Market research report interviewed 733 North American VARs in October and found that while 27 percent of them thought their business would grow by at least 15 percent in 2008, 43 percent only predicted growth of as low as 5 percent.  

Some VARs stated that they are getting mixed message from the market in 2008 and are concerned about how the overall economy may inhibit business growth.  Many feel it will depend on the location of their businesses and the surrounding industry along with their specialties and niche markets.  

Nearly 43 percent of VARs surveyed thought that businesses might rein in their spending in 2008 to prepare for an unpredictable economy, particularly in the U.S.  And 42 percent of the VARs asked thought the declining value of the U.S. dollar against virtually every other major currency could do some serious damage on the market.

On November 1, the U.S. dollar dropped to only 95 percents against the Canadian Loonie, which is the first instance in over 30 years that the value of the Canadian dollar was stronger than the American dollar.     

On November 1, the U.S. Federal Reserve put $41 billion into the U.S. financial system, which is the largest amount put in since September 2001.  Some of the U.S. government’s attempts to help the situation with tax cuts could help eliminate some of the VARs’ main concerns.  Still, many feel the Federal Reserve is still not doing enough to truly foster business.  

Many VARs also predicted that a possible recession was coming.

Submitted By:  Computer Consulting 101 Professional Kit