Stimulus Flow Starts, but Slowly


For vendors thinking economic stimulus may represent opportunities, an article this week in The New York Times offers both frustration and hope.  The Times reports that less 6-percent of economic stimulus funds have been distributed by the federal government.  And, most of that money has gone to the states for reimbursements to social program like Medicaid and Social Security.  Outside of the social programs, the most progress has been in road projects.  And even there, most of the money has not been distributed, only committed for payment later. 

The frustration results from the increasingly obvious fact that economic stimulus is not a “quick fix”.  Government buyers still don’t know exactly which of their wish list projects will be funded, and when.  So, when vendors knock on their doors touting their products and services as being ideal for stimulus spending money, buyers aren’t ready to answer.

On the other hand, at least the money flow has started.  Lessons are being learned and the spending infrastructure is undergoing changes.  Improvements are coming, and money will start flowing with force…particularly as funding sources are under increased pressure to get money into the economy.  This gives vendors a better opportunity to get their act together.

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