Opportunities Abound Amid Recession Fears

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Although recessionary fears are making headlines, Bank of Texas leaders say that their clients are more focused on making the most of a strong economy. 

“At this point, I don’t sense a great deal of anxiety among our customers in this market with regard to the economy,” says Mark Nurdin, Fort Worth market CEO for Bank of Texas. “They’re more concerned about growth and delivering the work that they have.” 

Accordingly, these are the questions that Nurdin and Bryson Bowden, Corporate Banking team lead, are hearing from clients—and how they’re responding: 

Q: How can we acquire and retain talent, at all levels, given our strong backlog and growth trajectory? 

A: “Knowing the market and what employees want is essential,” says Bowden. Competitive, current salary and benefit offers that include insurance, 401(k) plans, matching contributions and even financial planning education are very attractive, along with flexible, hybrid or remote working arrangements. In-migration of companies locating in North Texas is driving worker demand and wage hikes, says Nurdin. Nearly 300,000 jobs were added to the Dallas-Fort Worth economy for the year ended May 30—three times pre-pandemic rates—according to a recent Dallas Business Journal article citing U.S. Bureau of Labor Statistics data.

Q: How can I even out the rough spots in a slowly improving supply chain?

A: Be in a position to buy inventory at the right intersection of price and availability, even if the need for inventory is not imminent. “That requires sufficient liquidity to be able to go long on inventory without impairing the company’s ability to meet its current obligations,” says Nurdin, adding that highly leveraged companies can be at a competitive disadvantage.

Q: What should I prioritize, given all my responsibilities?

A: The balance sheet; having a strong one will determine if you can capitalize on acquisition opportunities for inventory, equipment, a facility or a competitor. “Many clients’ balance sheets are as strong as they’ve ever been. My #1 client conversation these days is about expansion and acquisition. Those can’t happen without a strong balance sheet,” says Bowden. 

Q: Regarding acquisitions, how can I best prepare to be the “hunted” and not the “hunter?”

A: Having up-to-date, quality financial reporting and a succession plan in place will help maximize returns on planned or unexpected opportunities. And it shouldn’t take the threat of a recession to be ready, according to Nurdin. “Too many times,” he says, “I’ve seen an owner miss out on anticipated or hoped for value because they couldn’t respond promptly or thoroughly to an inquiry.”

Q: How can you help me prepare for the uncertainty ahead?

A: We can offer strategy, encouragement, and resourcefulness. Our intimate knowledge of your business, plus access to industry-specific research, market awareness and collaboration allows us to be both an ideal sounding board for the challenges you’re facing and a source of capital or connection when you need it. Given the breadth of our team and client base, we can share topics of mutual concern and how fellow clients are responding.

Though a recession may be on the horizon (there are some who believe we are already there), Nurdin and Bowden recommend that business owners filter out the noise and instead focus on what they can control, be it their hiring, purchasing, cash management or company culture. By doing so, businesses will be in a better position to “weather the storm” if a recession does come. 

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