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Business Journals
07-07-2025
- Business
- Business Journals
How Tampa Bay businesses are managing risk in 2025
Florida business owners are certainly well versed in risk; however, the current mix of market uncertainty and economic fluctuation is causing many Tampa Bay business leaders to reevaluate their risk management strategies. While some leaders may hesitate to take action during this time, others are still optimistic about leveraging this time to prepare for the success to come. In fact, Valley's 2025 State of Business Survey found that 86% of businesses expect their revenue to increase by 10% or more this year. Rather than being reactive, smart business leaders are proactively prioritizing liquidity and securing credit capacity to manage risk and position themselves to prepare for future opportunities. Further, the Tampa Bay region is uniquely positioned for growth due to a significant talent influx driven by the strong university systems in the region. More talent leads to higher earnings, increased spending and community investment, creating a flourishing business environment for our area. Tampa Bay pros and cons Many business leaders say there is 'a cost to doing business in paradise.' While Tampa Bay's recent population growth helps to offset pressures from the brunt of macroeconomic factors such as interest rates and inflation, Tampa Bay presents its own set of challenges. One advantage of conducting business in Tampa Bay is its consumer spending. The influx of Tampa Bay residents and talent has created a landscape with higher consumer spending than many other metros in the country. This has significantly boosted industries such as healthcare, hospitality and tourism, which heavily contribute to the diverse economy. Just as Tampa Bay's geography bolsters its economy, it also contributes to business challenges. The region is vulnerable to hurricanes and storm surges, which have led to additional complications for insurance policies and supply chain operations. These challenges underscore the need for a strong risk management strategy including operational redundancies and proactive financial action in order to remain quick and nimble in a reactive market. Remember, if your business is facing challenges your competitors are too – risk management planning can set you ahead of others even in harsh conditions. Five long-term resilience strategies Consider implementing the following to ensure your business is prepared now for future risks: 1. Engage with your banker: Bad news can't wait – the sooner you share updates with your banker, the quicker they can provide solutions and help you shift or pivot operations. Without a strong relationship with your banker, it may be difficult or take longer to secure financing leading to missed opportunities. A strong relationship and developing trust and rapport with your bank helps to provide flexibility, both in good times and more challenging times. In addition, a strong banking partner will have an array of working relationships and can connect you with strategic partners, advisors and suppliers. 2. Strengthen your balance sheet: A strong balance sheet provides businesses with a valuable forecasting tool and enables you to make well-informed, timely decisions. Strengthen your balance sheet by retaining cash reserves, paying down debts and increasing profit margins. 3. Proactively increase credit capacity: In a period of uncertainty, it always makes sense to secure additional lines of credit. The best time to secure credit capacity is before you actually need it. Having credit readily available is key to reacting to crises that may require swift action as well as taking advantage of growth opportunities down the road. 4. Implement operational redundancies: While tariff policies continue to fluctuate, it's important to avoid rash and forced decisions. Instead, create a strong and diverse network of suppliers. This is especially important to increase redundancies in the case of disaster preparedness – if all of your suppliers are located in one area, they will all likely be affected and unable to fulfill requests. 5. Build a talent pipeline: In Valley Bank's 2025 State of Business Survey, 42% of business leaders state that finding good employees is a major challenge. Business leaders must think of employee recruitment as an additional sales arm – an ongoing initiative that is continually pooling candidates. Since employees have more access to information than ever, ensure your company offers a competitive compensation package, but also focuses on intangibles such as a robust company culture. Business leaders can also consider developing a talent pipeline with local universities and trade schools. Take advantage of a strong banking relationship Particularly when you're planning for uncertainties, business relationships and networks are vital to long-term success. A strong relationship with a banking partner is not just a financial lifeline, it's a competitive advantage. Valley Bank empowers clients with local industry expertise while utilizing its national strength and capabilities. In 2024, our local Commercial Banking team provided more than $1 billion in new loans to the region. Valley Bank is uniquely positioned to provide our clients with speed and flexibility, an array of resources and expert advice to dive deep on key areas of your business. Solidifying your banker relationship also provides your banker with intel on company leadership, which can often provide tools and information for your banker to be a better advisor when faced with financing and growth opportunities. This differentiation helps drive value for clients as we're able to look beyond a transactional level of a business' needs. Recently one of our local Valley teams collaborated with a Tampa Bay medical group, expanding on their commercial banking relationship to offer a range of banking services to the group's physicians and owners. Providing these additional services solved a pain point for their doctors with ease as the banker already had the knowledge and capacity to achieve a solution. Long-term business resiliency is created proactively, not just in the moment of need. Valley Bank's Commercial Banking team is here to understand your business' goals and unique challenges. As we move into the second half of the year, now is an ideal time to reach out to your local team to create or revise your risk management strategy. As the principal subsidiary of Valley National Bancorp, Valley National Bank is a regional bank with nearly $64 billion in assets. Valley operates many convenient branch locations and commercial banking offices across New Jersey, New York, Florida, Alabama, California, and Illinois and is committed to providing the most convenient service, the latest innovations and an experienced and knowledgeable team dedicated to meeting customer needs. To learn more about Valley, go to © 2025 Valley National Bank. Member FDIC. Equal Opportunity Lender. All Rights Reserved. Ben Powers is Director of Corporate and Middle Market Banking for Florida West at Valley Bank. With 13 years in banking and financial services, he is responsible for the expansion of Valley Bank's services in West Florida.
Business Journals
07-07-2025
- Business
- Business Journals
How Birmingham businesses are managing risk in 2025
Birmingham business owners are no strangers to risk, but the current climate of market uncertainty and economic fluctuation is prompting many leaders in Alabama's largest economic region to reevaluate their risk management strategies. While some leaders may be hesitant to make decisions, others are embracing this time as an opportunity to prepare for future growth. In fact, Valley's 2025 State of Business Survey found that 86% of businesses expect their revenue to increase by 10% or more this year. Rather than taking a reactive approach, savvy Birmingham business leaders are proactively maintaining liquidity and securing credit capacity to navigate risks and better position themselves for long-term growth. The Birmingham region is well-positioned for future success, thanks to its diversified economy and deep pool of talent. According to the City of Birmingham, the metro area is home to more than 18,000 automotive workers and 20,000 skilled metals and machinery professionals. That kind of workforce advantage fuels both innovation and stability across key industries. Birmingham pros and cons In addition to Birmingham's growing population, one of its greatest assets is its economic diversity. While its flourishing economy eases the impact of macroeconomic factors including interest rates and inflation, local business leaders still face regional challenges that require thoughtful planning. Historically recognized for its robust steel and manufacturing industries, Birmingham has also experienced significant expansion in healthcare, finance and logistics. Its strategic location – along with its proximity to the University of Alabama at Birmingham – has bolstered healthcare innovation and talent development. Financial institutions also maintain a strong presence here, reinforcing Birmingham's role as a financial hub in the Southeast. At the same time, some of the very industries that help drive the region's growth also introduce complexity. Recent tariff policies have disrupted international trade and created ripple effects across supply chains, particularly in manufacturing and logistics. These challenges underscore the importance of having a comprehensive risk management strategy including operational redundancies and proactive financial action in order to remain quick and nimble in a reactive market. Five long-term resilience strategies Consider implementing the following strategies to ensure your business is prepared now for future risks: 1. Engage with your banker: The sooner you share updates with your banker, the quicker they can help you pivot operations. Without a strong relationship, it may take longer to secure financing – potentially leading to missed opportunities. A trusted banking partner can also connect you with strategic partners, advisors and suppliers. 2. Strengthen your balance sheet: Maintain a strong balance sheet by retaining cash reserves, paying down debts or reducing spending. A strong balance sheet provides businesses with a valuable forecasting tool and enables well-informed, timely decisions. 3. Proactively increase credit capacity: The best time to secure credit capacity is before you actually need it. Having credit readily available is key to reacting to crises that may require swift action as well as taking advantage of growth opportunities down the road. 4. Implement operational redundancies: While tariff policies continue to fluctuate, it's important to avoid rash decisions. Instead, create a strong and diverse network of suppliers including domestically. This is especially important to increase redundancies when faced with evolving tariff policies. 5. Build a talent pipeline: In Valley Bank's 2025 State of Business Survey, 42% of business leaders state that finding good employees is a major challenge. Treat recruiting like a sales function — continually building relationships with potential candidates. Tap into Birmingham's skilled labor base and build partnerships with local universities and trade programs. Take advantage of a strong banking relationship As you're planning for the second half of 2025 and beyond, business relationships are a key component to long-term success. A strong relationship with a banking partner is not just a financial lifeline, it's a competitive advantage. Valley Bank shares mutual goals with clients – reduce uncertainty on your balance sheet and increase profitability. Valley's Birmingham Commercial Banking team empowers clients with local industry expertise while utilizing its national strength and capabilities. For example, we leverage our regional partners to augment custom solutions and better position clients for stronger cash flow now and profitability into the future. This differentiation helps drive value for clients especially as we're able to look beyond a transactional level of a business' needs. Our team recently supported a local transportation company as they continue to expand operations. Valley's Commercial Banking team provided a $20 million credit facility for equipment purchases, ensuring they have the equipment needed to match demand. Long-term business resiliency isn't built in the moment of need – it's built through planning. Valley Bank's Commercial Banking team is here to understand your business' goals and unique challenges. As we move into the second half of the year, now is an ideal time to reach out to your local team to create or revise your risk management strategy. As the principal subsidiary of Valley National Bancorp, Valley National Bank is a regional bank with nearly $64 billion in assets. Valley operates many convenient branch locations and commercial banking offices across New Jersey, New York, Florida, Alabama, California, and Illinois and is committed to providing the most convenient service, the latest innovations and an experienced and knowledgeable team dedicated to meeting customer needs. To learn more about Valley, go to © 2025 Valley National Bank. Member FDIC. Equal Opportunity Lender. All Rights Reserved.
