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Supply chain conditions will eventually get better, of course. But the recently robust economy will eventually get worse too. Which of those two things happens first matters a great deal to the channel.
“The government has put so much money into the industry that all of our sales are through the roof,” says Bob Tadevich, (pictured), president of Network Solutions Inc., an IT provider and big-time Cisco partner with offices in Illinois and Indiana. “Even though 50% of them aren’t shipping, it doesn’t matter. Our numbers still look good.”
When that money dries up, however, or if a recession arrives (something economists call a 2-in-5 possibility over the next 24 months, according to a recent Reuters survey), the picture will look very different.
“We’re all fearing that the bubble is going to burst,” says Tadevich. “At that point, if the global supply chain issues haven’t been resolved, then all of a sudden our numbers aren’t going to look as good.”
Few TechSelect members are making radical changes in anticipation of that possibility, but it’s increasingly on their mind. “We know it’s coming,” says Boone of an economic slowdown. It’s just that no one knows when.
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