Why Hawaii’s Economy May Be Resilient to Recession
Kyle Shelly, is the Senior Vice President and Director of Corporate Banking at American Savings Bank (ASB). He is also a volunteer board member of the Chamber of Commerce Hawaii, the Young Professional Program of the Chamber, and the Domestic Violence Action Center.
Shelly explains that although the unemployment rate is currently low for Hawaii, it is very difficult to hire for many businesses. The pandemic thrust individuals into unemployment and there has been a population decline over the last few years which has created a workforce shortage. Businesses are finding new ways to adapt and do more with less staffing resources.
The cost of capital, supply chain issues and inflation are also challenges for business. The federal reserve is striving to balance the challenges to soften economic impacts. Hawaii has some mitigating factors that may ease the impacts of a likely recession. Hawaii may be more resilient than the continental United States because of the expected return of the international visitor industry and a consistent pipeline of construction projects. Hawaii banks are also very well capitalized, in contrast to the 2008 recession environment.
Shelly believes the spirit of the entrepreneur is resilient and that businesses will do what it takes to survive, regardless of our economic environment. He sees some signs that inflation is decreasing in shipping container prices and because home values are starting to decline. He suggests businesses ensure they have access to liquidity through their banks to ensure business resiliency.