4th quarter challenges can lead to strong local partnerships

Meredith Williams

Meredith Williams

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As we approach the fourth quarter of 2024, many national economists agree a recession is not likely in the coming months even as GDP growth is expected to be slow. Consumers and businesses continue to put an emphasis on reducing spending while also focusing on managing their expenses.

A closer look at home shows that Nevada endured a volatile summer with the unemployment rate in July coming in at second-highest in the nation at 5.4% (ahead of Washington, D.C. at 5.5%) compared to the U.S. unemployment rate of 4.3%. However, reflecting back year-over-year, progress was made in the state’s employment numbers showing an increase of just over 3% primarily due to gains in construction and leisure and hospitality jobs.

Rate-watch will continue in the early part of the fourth quarter with all eyes on Federal Reserve Chair Jerome Powell who hinted that a rate cut could be coming as early as Sept.18. A rate cut would be welcome news for Nevadans as we are seeing the state’s average 30-year fixed mortgage rates hovering over 6% and the average auto loan rate over 5%.

Those are the numbers, plain and simple. My guess is those statics provide a tangible view of what many of us are experiencing in our daily lives or in conversations with friends and family. In 2024, we have seen hope alongside the obstacles and progress paired with uncertainty.

As we speculate over job numbers, inflation, and rate cuts, it can feel as though we are spectators in the economic whirlwind. However, in Northern Nevada, we know there are factors well within our control. The credit union industry has a philosophy: People Helping People. While it might seem rose-colored on the surface, the power behind the sentiment reveals a much deeper purpose — staying connected in the community as a means to long-term viability. Over the years, United Federal Credit Union has helped more than 1,800 Nevada business members get the funding they need to open new doors, invest in new equipment, and expand products and services to customers. Creating and curating strong local partnerships and relationships puts business owners, lenders, and the community back in the game and further removed from a ‘watch and wait’ approach to the economy.

The key to fostering positive relationships and building a network of trusted partners is being proactive with connections and conversations. This gives small business owners, entrepreneurs, and corporate leaders the opportunity to learn more about the financial tools that are available to them close to home. At United and other credit unions across the state, decisions are kept and made at the local level so that businesses have a reliable, accessible advocate who lives in the community to answer specific questions, provide financial advice, and help the enterprise grow. The interest credit unions, like United, have in fostering a viable local business climate is in promoting prosperous communities.

A 2023 survey by the Nevada Small Business Development Center in the College of Business at the University of Nevada, Reno found that 98% of all businesses in Nevada are small businesses. Of the entrepreneurs surveyed, 71% said the top challenge was securing funding. Existing business owners cited adapting to inflation and managing cash flow as some of the top challenges. The results illustrate the real need for Nevada businesses to know (and grow) local resources and understand the strength that comes from building local partnerships.

In business, like in life, times of uncertainty can create a lack of confidence in the future. As Nevada businesses face the fourth quarter of 2024, relying on connected, community-based partnerships and relationships can serve as a source of strength and innovation. It is important to keep an ongoing dialogue with trusted financial advisors and make a plan for progress by taking control of the local business environment. Just like the credit union philosophy, people helping people can go a long way in building lasting foundations that won’t shake at the ever-churning winds of economic change.

Meredith Williams is Regional Vice President in Nevada for United Federal Credit Union. She oversees the development and execution of business and marketing plans, develops and maintains key member, business, and community relations, and acts as an advisor to United members. Williams has more than 25 years of financial management experience in the Reno and Carson City, Nevada communities. Visit UnitedFCU.com for more information. Federally Insured by NCUA. Equal Opportunity Lender. Equal Housing Lender.

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