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

In recent years, Austin has spent more time on dealing with its rapid growth than with trying to attract more business. Organizations such as the Greater Austin Chamber of Commerce even received criticism for concentrating too much on out-of-town companies and too little on companies already here. Now, with the Central Texas economy slowing, it's time to throw economic development in high gear, says Angelou, founder of Angelou Economic Advisors. He's also a former vice president of economic development at the Austin Chamber.

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