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Focus on Austin: The Party in Austin is Over....But There's Always Tomorrow
By Joelle Weichmann
Despite the rising number of corporate cutbacks in Austin, the slump in the city’s economy may not be as bad as it seems. Many Austin business people believe that the downturn could prove beneficial for the city in the long run.
“We’re still in the midst of recovering from the ‘party,’” says Peter Zandan, MBA 83, Chairman and Co-founder of Zilliant Inc. “Excitement got ahead of reality—excitement can be healthy, but not when the expectations are impossible to achieve.”
Today, Austin’s businesses are operating more cautiously and more realistically. Wes Breyfogle, MBA 95, is witness to the transformation. As director of strategic development for Momentum Software, Breyfogle has been fortunate: his company remains successful despite the current economy. “I really believe a lot of people knew they were riding a wave, but somewhere along the way, they lost sight of reality,” he suggests. “It has been a rough few months for many, but I have observed that the panic is yielding, budgets are opening, managing the income statement is back in fashion, and planning horizons are more than two weeks out.”
Lyn Graft, MBA 95, and vice president of marketing for 212 Studios, has also kept his company alive and succeeding in this tough market. “We were passed over for funding when everybody else received it, but secured funding when others could not,” Graft says. “It’s a quarter-to-quarter battle for our company and this is not for the weak at heart, but there is nothing I would rather be doing because the start-up thrill motivates you to go out there and make it happen.”
The younger generation of business people in Austin would do well to remember that the city has survived slower economic times in the past. The oil bust of the late 80s and early 90s actually paved the way for the recent technology boom by providing open space at lower costs. “We are going to see a recycling of the events of the late 80s where empty office space was abundant. Rental rates have been lessening we have available space, declining housing prices, valuable resources like UT, and a highly trained and now hungry workforce,” observes Ford Alexander, MBA 85, principal for Colliers Oxford Commercial. “We foresee this opening the door for even more expansion in Austin, and we actually now have the supply to handle the demand again.”
While there are probably a few more bumps in the road ahead, there are many indications that Austin will emerge with more strength than ever before.
“The technological boom really put Austin on the map and raised the bar of achievement. This slowdown provides the perfect opportunity for a gut check—are my values aligned with my career path and goals? Am I being true to myself and my interests?” advises Zandan. “Industries will continue to cycle, and what’s hot today will be cold tomorrow. But if you’re true to your interests, you’re more likely to achieve true career satisfaction.”
The bottom line, says Zandan, “We haven’t seen the best Austin has to offer.”
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