The next couple of years are forecast to be economically positive, according to the Institute for Trend Research’s Alan Beaulieu (https://itreconomics.com/). His recent presentation featured detailed predictive data for many different markets. The overall forecast was for continued moderate business growth.
So—is your business ready for more growth, and also the possible growth for your customers? Does this mean stresses on your supply chain? Proficient Sourcing is ready to assist.
A summary slide in Mr. Beaulieu’s presentation showed the following points which lead to his conclusion that the US/Global recovery still had “some life left”:
- Leading Indicators are pointing up
- The world is relatively calm
- Employment is rising
- Banks are lending
- Retail sales are rising
- Non-residential construction is improving
- Deficit spending continues—no appetite for austerity
We hope your business is among the fortunate that will experience prosperity. As you project growth, we hope your suppliers are able to respond to your increasing needs. Again, if this is an issue, Proficient Sourcing is ready to help.
Here’s how.
We check your requirements and look for shops that would best fit your needs. Factors include price, volume, speed of delivery, and required (or desired) certifications. In most cases we have candidates ready for you right now, and you can examine our “inventory” of capabilities here. We usually deal with a large and diverse network of excellent shops, and have resources for finding excellence outside that network as well.
Mr. Beaulieu’s forecast included an encouraging note that the US is and will continue as the world’s #1 economy. Our GDP is almost 23% of the world’s $74T total; and at $16.8T is still considerably larger than China ($9.2T), and is bigger than #2 and #3 combined (Japan is #3 at $6.6T). China will not pass the US for the foreseeable future, and has a host of problems of its own—including a very large debt problem. As is widely noted, the cost of doing business in China is increasing rapidly. Perhaps reshoring is on your agenda to research? Again, we have shops galore ready and willing to quote your requests.
Mr. Beaulieu also noted the US is a highly sought after place to manufacture. This despite high corporate tax rates, burdensome regulations, and the effects of a large national debt. Despite all these factors, most businesses seek US sites, which is more good news.
On the other hand, this trend, along with reshoring and generally good economic conditions, will add significant pressure for wage increases. If it is difficult to find good help at present, none of the forecasted trends suggests anything but more difficulty in finding good qualified employees. Beware of poachers and consider bold moves to protect your interests.
As we can see, prosperity can be a dual-edged sword. Problems can arise from growth, but if managed well, prosperity means just that: Prosperity!! We wish you all well in the years ahead. Please just remember that we stand ready to assist with your supply issues.