The Sramble for Capital

This article is a must read for any area that wants to encourage future business investment.

For the past three years, Corporate America has been nothing if not stingy. Stalled by sluggish demand, companies have slashed spending on new factories and equipment, salaries and bonuses, technology, benefits, and travel. They have exited unprofitable businesses and sold off nonstrategic assets. They have downsized, outsourced, and offshored.

Now, as the economy finally springs back to life, CEOs are ready to start spending again. But for many companies, investments in growth will produce disappointing results, predict a handful of prominent management consultants. The main reason: traditional sources of revenue growth—such as product enhancements, grabbing market share, or acquiring competitors—have been largely tapped out.

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