By Rick Craig, President and Chief Executive Officer
Millions of people get up each morning, turn on GE lights, start a batch of wash using Procter & Gamble’s Tide, catch up on the news with an IBM computer, and then drive to the airport in General Motors (GM) vehicles to catch United Airlines flights, stopping along the way to drop off FedEx packages.
Fortune magazine recently published an article regarding six companies born during downturns. These organizations have become household names: IBM, Procter & Gamble, General Electric (first called the Edison General Electric Company), United Technologies Corp., GM, and FedEx. The magazine writer posed the question, “Think a recession is a bad time to start a company? Imagine if the founders of these major corporations had thought the same.”
During the financial panic of 1837, Procter & Gamble and General Electric were founded, followed by IBM during the long depression of 1873 to 1896. General Motors started in the panic of 1907 and United Technologies came into existence during the Great Depression. FedEx was founded amidst the oil crisis of 1973.
Each of these companies has changed from their original business models as economic conditions, innovations, and competition have impacted them. As examples, IBM moved from being a computer manufacturer to becoming a major provider of software and computer services. In the recent Great Recession, GM required an infusion of capital from the government and now 60% of the company is owned by the taxpayers. FedEx continues to provide expedited package shipping, but is being affected by lower demand and changing gas prices. The other three corporations have all transformed major aspects of their businesses.
Opportunities do occur during recessions, but the question is whether businesses will be able to take advantage of them. During this economic downturn, America First Credit Union merged with Community One Federal Credit Union headquartered in Las Vegas, Nevada. This will provide additional service locations for our members, especially those already living in Clark County. We will continue to be flexible in finding opportunities and developing products and services that will benefit our entire membership.
History has shown us that difficult economic times provide opportunities, but don’t guarantee success. The Chairman of our Board of Directors, Mr. Jim Wendler, has called 2009 a “watershed year” in the history of the credit union. I concur with his assessment and the board direction in expanding the credit union for the benefit of all, now and years into the future.
