Why Investing in Technology Makes Sense During Uncertain Economic Times

As businesses look ahead to the impact of U.S. tariffs in 2025 and ongoing inflationary pressure, many will instinctively tighten budgets and pause investments. In a CNBC interview on the “State of Freight”, Kyle Henderson, CEO of Vizion a container tracking service, explains the drop in US imports, “We haven’t seen anything like this since the disruptions of summer 2020. That means goods expected to arrive in the next six to eight weeks simply won’t. With tariffs driving costs higher, small businesses are pausing orders. Products that once moved reliably are now twice as expensive, forcing importers into tough decisions.”

It’s a natural reaction: when costs go up and revenue projections become less certain, pulling back on spending feels like the safe move. But sometimes, the best time to invest is when it feels the hardest—especially in technology.

Smart technology investments can improve operational efficiency, reduce long-term costs, and provide critical insights during times when every dollar counts. According to McKinsey and Company’s research, “Innovative companies use technology to help them base decisions on facts and data at levels far beyond their peers. This externally informed mindset reduces vulnerability to biases and internal politics—and enables the company to rapidly course-correct its strategies, R&D priorities, and portfolios of initiatives.”

One example is people counting technology, which gives businesses valuable data on customer traffic. That data can then inform smarter decisions around labor, store hours, and location strategy—some of the biggest cost centers in retail.

Two of the Most Expensive Business Resources: Labor and Real Estate

Let’s explore how retail traffic counting can help optimize these high-cost areas:

Labor Optimization

Labor is one of the largest line items for most businesses. People counting technology can help you right-size your staffing strategy in a few ways:

Smarter Staffing Across Locations

Accurate store traffic forecasting allows you to shift staffing based on actual traffic—not assumptions. Locations with higher foot traffic may need more staff, while those with consistently low visits might be overstaffed.

Optimizing Hours of Operation

Are you open when your customers aren’t coming in? By aligning your hours with actual foot traffic patterns, you can reduce unnecessary labor costs without compromising customer service.

Strategic In-Store Staffing

Traffic data doesn’t just show you when people come—it shows where they go. Use interior traffic data to position staff in your highest-traffic zones. You may find certain displays or areas attract more guests than expected, giving you a chance to improve guest experience and conversion in the right places.

Real Estate and Store Footprint Efficiency

The cost of rent or mortgage can be a heavy burden—especially in retail where businesses may operate dozens or hundreds of locations. During times of economic stress, reducing your footprint may become necessary. But how do you know which locations to cut?

Look Beyond Profit—Evaluate Traffic

It’s tempting to look only at profitability, but foot traffic offers a clearer view of opportunity. A store with low revenue but high traffic may simply need better conversion tactics. Calculating conversion rates—sales divided by traffic—offers a more balanced view of store performance and potential.

The Bigger Picture: Tariffs, Inflation, and Your Bottom Line

Tariffs and inflation don’t just raise costs—they put pressure on every part of your business. Here’s how they ripple through operations:

• Tariffs drive up the cost of materials and inventory, leaving less room in the budget for labor, rent, or technology.
• Inflation increases the cost of living, prompting employees to ask for higher wages—at the same time businesses are trying to manage tighter margins.
• Expansion becomes riskier, as higher costs make opening new locations harder to justify—especially without clear data on potential ROI.

Why Technology is a Smart Bet Right Now

In uncertain times, data becomes your best defense. Investing in technology that gives you clearer visibility into how your business runs—like people counters—means you can do more with less. You’ll make smarter decisions on staffing, save on unnecessary hours, and better understand which locations are truly worth the cost.

Yes, budgets are tight. But investing in the right tech now can save you far more later.