Hi John and Thread,
I happened to drive through Network Allay in Silicon Valley the other day and I was surprised to see 6 signs for offices-for-lease, which is a slightly higher number of offices available for lease on those roads than what was seen during the last recession.
While driving through the area, I saw one car go through a red light, at a different junction another car almost hit mine because they didn't stop before turning (fortunately I have good brakes), and later, another car bolted out of one of the network companies without stopping and I had to swerve to avoid that car. Overall, I would say, the network people look upset and I wouldn't recommend driving through the area until things settle down.
Is this downturn specific to the network sector? Maybe it is.
Today, I have a meeting with a high-tech company that was recently formed because another high-tech company has too much business that it cannot meet, so I wouldn't yet characterize this 'recession' as the entire high-tech industry because there are still pockets of great product demand in different sectors of high-tech. However, one of the first questions I will ask at the meeting is: how old are the contracts and at what rate are new deals coming in. If a high growth area like this has been hit too, then I may begin to develop the impression that this is spreading to the entire high-tech industry. At the moment, I don't have that impression.
Regards,
Amy J |
