The market for the long haul

It is not a surprise that state and local governments are facing tight budgets.Even in our personal lives, many of us are facing falling property values, andlocal governments are debating whether to raise tax rates or cut services. Or both.In my home state of Virginia, it looks like one of thebig victims might be transportation projects.But there is opportunity here, too. As our annualstate and local special report explains, it is usually duringtough times that governments are most receptive toideas that can save money and streamline operations.Deputy Editor William Welsh explores this inhis cover story and finds that the successful contractorsin this environment are the ones who canhelp customers shore up information technologyinfrastructures, overhaul outdated systems anddeploy governmentwide financial systems.As they have been for several years, the Stateand Local Who's Who rankings were compiled byFedSources, a market research firm in McLean, Va.The state and local market can be a tough one tocrack, as many government contractors know, but FedSources' insights havehelped us at Washington Technology keep up with a quickly changing market.Our annual Who's Who list shows a stable group of companies dominatingthe state and local market. There is good reason for this and it serves as a lessonfor companies in other markets.The key is focus. These companies stick close to the market and their customers.They've invested in people and other resources. They've developed solutionsand technologies that address the unique needs of their customers.The market will rise and fall, but thesecompanies are in it for the long haul.