As the European debt crisis that roiled the continent's economy last year threatens to drag Europe into recession, multinational businesses in Pittsburgh have had to adapt.
"We're in a period of time (with) a high level of unpredictability," said Stephan Liozu, CEO of Ardex Americas and member of the board of directors of the World Affairs Council of Pittsburgh. Ardex Americas is the Aliquippa-based North American arm of a German construction firm.
The recession and debt problems in the eurozone have changed how companies do business, said Liozu, a native of France.
"You have to constantly re-evaluate. ... You can't wait 12 months; you've got to do it now," Liozu said. "The difference now is how fast it goes from the macro level to the micro level -- how government policies and financial policies affect small businesses."
Investors watch the often laborious process of eurozone countries trying to agree on a financial remedy to the debt crisis, and markets react quickly to the outcomes.
"The markets are not to blame. The markets only reflect the situation as they see it. They are, indeed, quite objective," said German Consul General Busso von Alvensleben.
When the markets move, businesses react, adjusting spending and postponing projects, including construction projects for which Ardex provides supplies.
"As a leader, I'm responsible for 300 families" that depend on his company's payroll, Liozu said. "We just have to do better. The opportunities are there. They're smaller, more focused, and you have to fight a little bit more for them."
More fluctuation likely will come as eurozone countries struggle with the tension between what's best for the euro and for member states. Each country sets its own budget -- including deficits and entitlement costs -- but they share the same currency.
European Union countries are considering whether to sign on to treaty restrictions that would require them to balance budgets or submit to E.U. oversight. In return, financially troubled countries could get bailout money.
"We think we have to tackle the roots of the problem, and the roots of the problem are structural weaknesses in our treaty system," von Alvensleben said.
It's a touchy subject.
"The budget right is the core right of parliaments, so it's an element of sovereignty. You really touch on something very, very delicate in the self-esteem of countries," he said.
Because the problems are so large -- economies ranging in size from Greece to Italy have teetered on calamity's edge -- analysts don't expect a quick recovery.
"Business conditions in Europe are going to be grim (in 2012). We are cautiously optimistic that the European financial system is not going to have a disorderly crisis," but it could enter a mild recession, said Bill Adams, international economist at PNC Financial Services Corp.
Business leaders should accept that today's volatile business climate will last for some time.
"Over the next 10 years, we probably won't see the level of growth we saw in the early 2000s," Liozu said. That growth was financed by debt and credit that often flowed too freely. "Now, we're just getting a reality check.
"It's irrational to think that for the next 2,000 years, we're going to grow every month. There's competition, and some people win and some people lose."
pittsburghlive.com
"We're in a period of time (with) a high level of unpredictability," said Stephan Liozu, CEO of Ardex Americas and member of the board of directors of the World Affairs Council of Pittsburgh. Ardex Americas is the Aliquippa-based North American arm of a German construction firm.
The recession and debt problems in the eurozone have changed how companies do business, said Liozu, a native of France.
"You have to constantly re-evaluate. ... You can't wait 12 months; you've got to do it now," Liozu said. "The difference now is how fast it goes from the macro level to the micro level -- how government policies and financial policies affect small businesses."
Investors watch the often laborious process of eurozone countries trying to agree on a financial remedy to the debt crisis, and markets react quickly to the outcomes.
"The markets are not to blame. The markets only reflect the situation as they see it. They are, indeed, quite objective," said German Consul General Busso von Alvensleben.
When the markets move, businesses react, adjusting spending and postponing projects, including construction projects for which Ardex provides supplies.
"As a leader, I'm responsible for 300 families" that depend on his company's payroll, Liozu said. "We just have to do better. The opportunities are there. They're smaller, more focused, and you have to fight a little bit more for them."
More fluctuation likely will come as eurozone countries struggle with the tension between what's best for the euro and for member states. Each country sets its own budget -- including deficits and entitlement costs -- but they share the same currency.
European Union countries are considering whether to sign on to treaty restrictions that would require them to balance budgets or submit to E.U. oversight. In return, financially troubled countries could get bailout money.
"We think we have to tackle the roots of the problem, and the roots of the problem are structural weaknesses in our treaty system," von Alvensleben said.
It's a touchy subject.
"The budget right is the core right of parliaments, so it's an element of sovereignty. You really touch on something very, very delicate in the self-esteem of countries," he said.
Because the problems are so large -- economies ranging in size from Greece to Italy have teetered on calamity's edge -- analysts don't expect a quick recovery.
"Business conditions in Europe are going to be grim (in 2012). We are cautiously optimistic that the European financial system is not going to have a disorderly crisis," but it could enter a mild recession, said Bill Adams, international economist at PNC Financial Services Corp.
Business leaders should accept that today's volatile business climate will last for some time.
"Over the next 10 years, we probably won't see the level of growth we saw in the early 2000s," Liozu said. That growth was financed by debt and credit that often flowed too freely. "Now, we're just getting a reality check.
"It's irrational to think that for the next 2,000 years, we're going to grow every month. There's competition, and some people win and some people lose."
pittsburghlive.com
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