As we approach the start of a new calendar year, it’s natural to take stock of what’s directly before us and try to predict what’s going to happen. Kansas City businesses are no exception to this rule, and there are certain trends and events that local entrepreneurs and business owners should be aware of. Here’s a closer look at some of the changes we should expect to see in 2021 in Kansas City’s economy.
1. More Remote Work
Perhaps the most significant change in 2021 will be the widespread adoption of remote work. Due to the coronavirus pandemic, businesses throughout the region have learned how to function with a distributed workforce. Looking forward, it’s anticipated that many of these businesses will continue to allow employees to work from home at least part-time. Over time, this could fundamentally change the way we think about workspaces and even commercial real estate.
2. Emphasis on Maintaining Cash Reserves
Given the unprecedented stress that the coronavirus pandemic put on businesses worldwide, it’s no shock that many organizations are looking to build up reserves to weather the next difficult economic climate. In this regard, Kansas City’s private sector looks to be taking a conservative approach in 2021. We are expecting most businesses to maintain sizable cash reserves as a kind of pandemic insurance policy, which will likely result in less overall capital investment.
3. Digital Transformation
The pandemic wreaked havoc on a lot of business and economic actors that were not able to pivot to digital quickly enough. Consider service industries like restaurants and dentists, which found themselves struggling to compete because they didn’t have robust online marketing and ordering systems. It’s our prediction that Kansas City businesses will attempt to address this vulnerability by accelerating their digital transformation efforts.
4. Emphasis on Customer Well-being
Finally, we expect Kansas City businesses to be more strongly focused on customer health and wellness in 2021 than ever before. This trend has been picking up steam for a few years now as customers demand more than just products and services. They want to see businesses that care about their health, provide safe and hygienic environments, support diversity in the workforce, and take concrete steps toward environmental responsibility. It’s an exciting time to be in the business world, but as always, it will take careful planning and execution to navigate 2021 successfully.
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