Adjust Your Sails for 2013

Aug. 10, 2012
Look beyond the headlines to take advantage of growth opportunities.

Business-to-business spending, as measured by Nondefense Capital Goods New Orders (excluding aircraft), is growing at a noticeably slower rate.  New Orders on an annual basis are still a healthy 7.1% ahead of this time last year, but the rate of rise is diminishing.  This may be why some people are mistakenly using the R-word (recession) while the U.S. is still growing.

Manufacturers are reputedly slowing down on capital goods orders and hiring decisions owing to uncertainty over the fast-approaching U.S. fiscal cliff.  You can thank Dr. Bernanke for that term.  The fiscal cliff refers to the total impact of the combined tax hikes and automatic spending cuts, which total more than $600 billion.  The impact of these measures will reputedly push the US into recession early 2013.  Do not believe it.  The impact from either, or both, will take time to register throughout the economy.

Instead, use the next four quarters of economic expansion to boldly go after your competitors.  The timid will not have the means to attract new customers, nor will they have the desire to attract the best available talent.  They will also not have the desire to spend the money to train new hires in preparation for the post-2014 economic expansion.

The US economy will be expanding for approximately two to four more quarters.  Take advantage of that time to outmaneuver your parsimonious competitors.  This is not the time to lower your sails in advance of the storm, but rather it is time to adjust your sails and take maximum advantage of the prevailing winds.

About the Author

Alan Beaulieu Blog | President

One of the country’s most informed economists, Alan Beaulieu is a principal of the ITR Economics where he serves as President. ITR predicts future economic trends with 94.7% accuracy rate and 60 years of correct calls. In his keynotes, Alan delivers clear, comprehensive action plans and tools for capitalizing on business cycle fluctuations and outperforming your competition--whether the economy is moving up, down, or in a recession.

Since 1990, he has been consulting with companies throughout the US, Europe, and Asia on how to forecast, plan, and increase their profits based on business cycle trend analysis. Alan is also the Senior Economic Advisor to NAW, Contributing Editor for INDUSTRYWEEK, and the Chief Economist for HARDI.

Alan is co-author, along with his brother Brian, of the book MAKE YOUR MOVE, and has written numerous articles on economic analysis. He makes up to 150 appearances each year, and his keynotes and seminars have helped thousands of business owners and executives capitalize on emerging trends. 

Prior to joining ITR Economics, Alan was a principal in a steel fabrication company and also in a software development company.

Sponsored Recommendations

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!