“The 2008 financial crisis struck this city hard, largely because the economy was overly reliant on tourism and construction,” said Brian Hayes, Regional Partner at NOW CFO. As a result, Nevada shifted its focus to industries such as healthcare and technology to reduce its dependence on the gaming industry and diversify its workforce.
What impact will this have?
Nevada has worked hard to diversify its revenue stream, but there is plenty more to do. Economic development is an ongoing effort, and it will take quite a while for other industries to rival the gaming industry’s influence. Since having success, companies across the country have taken notice, and employment numbers have been trending positively.
Over the past five years, businesses including Zappos, Switch Inc., and Amazon have opened headquarters in the Las Vegas metropolitan area, bringing approximately 3,000 new jobs. But the University of Nevada’s medical school is at the core of the city’s visions for the future. By 2030, it is expected to add over 8,000 jobs and contribute $1.2 billion annually.
While confidence is high, Nevada is preparing for the next recession. “As long as the economy is driven by tourism, Las Vegas will have an above-average risk during economic downturns,” Managing Partner and CEO Jim Bennett explains. This provides NOW CFO with a unique opportunity to help local companies implement financial strategies in preparation of a future recession.
The full-service financial outsourcing firm NOW CFO recently added Las Vegas to its growing list of markets. NOW CFO provides CFO, Controller, and Accounting level services to Nevada businesses of all sizes in hopes of delivering marginal resilience in preparation of a future recession. They provide services from cash flow analysis and forecasting to profit/loss reports and raising capital. “Whether you’re expecting to be impacted by the recession or not, preparing is good for businesses in any industry,” Managing Partner and CEO Jim Bennett concludes.
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