I actually disagree with this a little, I think there is a tiny amount of capex happening especially at agressive companies like JetBlue. But until we get meaningful hiring here there is no need to add PCs or local capacity of any kind. So when is hiring going to pick up...LOL.
Behind the Surge of Capital Spending
Beware: The recent increase has more to do with military outlays and spending on replacement gear -- not productive new expansion
For starters, much of the second-quarter jump in business spending was related to the giant increase in military outlays as the Iraq war broke out. Also, investors are growing suspicion that much of businesses' spending went into replacing aging but essential equipment, not expansion.
After all, computers and software, which made up much of the increase, are among the fastest corporate necessities to become outdated. Plus, new, cutting-edge technologies such as high-speed wireless access, or Wi-Fi, aren't likely to lead to big changes in the way companies do business (and therefore require more spending down the road). They'll support an existing way of doing business, says Peter Cohan, a management consultant and author of Value Leadership: The 7 Principles that Drive Corporate Value in Any Economy (Wiley, September 2003).
businessweek.com |
