"One major announcement or two," says economist Angelos Angelou,who last week forecast higher vacancy rates and a slow localeconomy until this time next year. "One or two good shots in thearm, whether they are companies that are here that plan to expandor perhaps a new company or two coming to Austin, and we can absorbsome real estate, this forecast will change significantly."

In recent years, Austin has spent more time on dealing with itsrapid growth than with trying to attract more business.Organizations such as the Greater Austin Chamber of Commerce evenreceived criticism for concentrating too much on out-of-towncompanies and too little on companies already here. Now, with theCentral Texas economy slowing, it's time to throw economicdevelopment in high gear, says Angelou, founder of Angelou EconomicAdvisors. He's also a former vice president of economic developmentat the Austin Chamber.

"I understand the reasons why Austin has relaxed a little bit oneconomic development the last few years," he says. "Things weregoing so wonderfully. But economic development must always be onhigh gear whether we're growing by 5% or we have a negative growth.Economic development is not to be forgotten. It takes time toreinstate yourself in that business, to establish therelationships, to have a pipeline of projects and contacts that maybe interested in moving into this area."