Our worst nightmare was the exit of existing manufacturing firms. All of this changed ten years ago, when Rhode Island became a service and information-based economy. In the information age, knowledge and information are major sources of wealth. Both of these are fundamental to the success of any businesses. Technology has profoundly influenced the location decisions of firms and redefined the prerequisites for profitability in a low-inflation climate such as ours.
Layoffs occur regularly, even during recoveries.
Maintaining a stable employment base depends far more on the expansion of existing firms and by new firms locating here than at any time in the past. With layoffs and downsizing, firms have also come to rely on permanently smaller labor forces. The costs of doing business in a state still matter. The costs of hiring, training, and re-training workers are legitimate business costs, ones that are rising in relative importance. Any recommendations about changes in our state's educational system, we are told, will come at a later time.