The Real Economy Blog

Technology

IT firms comprise the fastest-growing U.S. industry, with more than double the average growth of all other sectors. From software developers to new gig economy platforms, the middle market is an active participant in this exciting space.

Private equity looks for recession-proof deals

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These are flush times for American private equity funds. Through November, they have raised more capital than any other fiscal year. But a good portion of that cash has not been put to use – yet. One reason is that many takeover targets have simply become too expensive, a dynamic reflected in the drop in deal activity for 2019. According to RSM Bloomberg, ... READ MORE >

How senior housing developers can respond to sagging demand

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Developers eager to fill the demand for senior housing created by an aging U.S. population are facing a new and unexpected challenge in the form of rapidly advancing technologies that allow seniors to stay in their homes longer. It’s called “aging in place,” and a host of disruptors have set their sights on this growing market as a participants across ... READ MORE >

Latest moves in trade conflict hit U.S. tech industry hard

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Early this month, the administration announced plans for fresh tariffs of 10% on an additional $300 billion in Chinese goods, effective Sept. 1; China responded by announcing a freeze on U.S. agricultural products, and allowing its currency, the yuan, to drop to its lowest level in a decade. Late last week, the president delayed implementation on some of the ... READ MORE >

Lessons for software companies from the Great Recession

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Software companies operating in the latter part of the business cycle must consider the implications of a potential recession on their business. It’s worth noting that during the Great Recession, some software companies endured and even thrived. A decade later, the industry can learn from these businesses how to prepare for another economic downturn. SaaS ... READ MORE >

Chipmakers face fresh woes in days following Fourth of July holiday

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This year, it’s Japan and South Korea. Soon after the U.S. July Fourth holiday last year, the United States–China trade dispute saw significant escalation, and semiconductors were placed on the tariff list. This week, again following Independence Day, the industry has fallen prey to rising trade tensions, as Japan threatens to remove preferential status ... READ MORE >

Slack is anything but, in its debut on the NYSE in direct listing

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A number of highly anticipated tech IPOs took place in the first half of 2019. But Slack, the workplace chat company debuting on the New York Stock Exchange Thursday, chose a direct listing. Is the approach, also taken by online music platform Spotify in 2018, becoming a trend? IPO vs. direct With high rates of cash burn, emerging tech companies have ... READ MORE >

Mexico tariff poised to hurt California tech economy

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A proposed new tariff on Mexican imports could have a devastating impact on California’s technology sector; the state imports a disproportionate amount of goods from the United States’ southern trading partner and conversely exports a large amount of products over the border. President Trump on Thursday threatened a 5 percent tariff on all goods from ... READ MORE >

Data breaches are down but more effective

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While the number of data breaches per year has doubled in the last decade, there were significantly fewer breaches in 2018 compared to 2017, according to the Identity Theft Resource Center, a nonprofit advocacy group for victims of cybercrime (see chart below). Unfortunately, cybercriminals have had greater success in accessing sensitive personal and ... READ MORE >