Key research groups are starting to talk about their predictions for the economy, and everyone is interested. It feels like everyone is waiting for the other shoe to drop. After all, we have been in an expansion mode far longer than is typical and there is plenty of volatility and uncertainty in global trade, the U.S. Shutdown and more. Last week, I heard a research expert from City National Bank and did an informal poll of trusted advisors (CPAs, attorneys, consultants, commercial bankers etc.). The bottom line = continued growth.
The City National Bank expert said that they study about 20 economic indicators, and all are firing on all cylinders. The only one that has consistently shown some potential for hesitation is geopolitical risk – which isn’t new. As much as the U.S. Shutdown, global trade tensions, Brexit and more has the stock market jittery, it hasn’t impacted the economic forecast. Businesses are growing and the economy is doing well! The hot topics being discussed include asset protection, the talent shortfall, the technology transformation and cyber security risks. There are always lots of details to consider but the common theme is growth. Thus, a key question becomes, are you prepared for scalable, profitable growth?
One tip to implement this week:
What I’m seeing as a differentiator to success in these strong yet uncertain times is the ability to ‘stay the course’ and be resilient. With each new emerging news story, I’m seeing the stock market choke and people panic. Unfortunately, this can lead to short-term, erratic changes in executives’ decisions. No one wants to be put into the same position as they were in during the last recession. So, the tendency is to overreact. Yet, the most successful clients provide stability and a platform for scalable growth.
They are willing to make hard decisions, ranging from investing in top talent to systems and technologies (even when their peers are hesitant) to addressing the sacred cow (every business has at least one!) to thinking about how their business model might be evolving and what they might need to change (even when they are currently profitable and seemingly successful).
It might make good sense to take a step back and avoid overreacting to the latest news. Stay aware and on top of trends. Ask questions and consider down-the-line impacts on your business. Instead of getting caught up in the latest drama or fad, put thought into how to build agility into your plans. How can you ensure your navigation system is rock solid and will weather whatever storm occurs next. If there is one constant, it will be continued volatility and uncertainty.
Prepare to be resilient. Check out our new resilient supply chain series and contact us if you’d like to have an assessment of your organization.