Fifth teen years ago I wrote an article titled: “The FIVE Early Warning Signals of a Downturn Economy.” It was a big hit and ran in numerous trade magazines. As each signal came true, the economy down turned and everyone quickly realized how valuable my article was to them.
As I look around me today, I am seeing slight signs that this economy will get better no matter what internal conflicts are upsetting it presently.
One of these signals that is a key driver has already proven its worth. Companies that have cut the fat from their operations and are working lean are surviving, and many are profitable. Many companies are flushed with cash, just waiting.
Hopefully soon which will boost our economy even further, we will see an emergence in re-establishing our manufacturing base.
In the last ten years, the effects of Free Trade that was spearheaded by the Clinton Administration, over 40,000 U.S. manufacturing plants closed as that important element of our economic engine went overseas to cheaper labor.
With the reality that cheaper products do not equate to the high standard of American made, I believe we will see an up-tick in those plants coming back home to roost. This will mean increase work as these plants are remodeled, refitted or re-built to accommodate their revival back here where they belong.
Another signal is on the political front. With the average American voting no to progressive, socialists and communist political tactics and leadership that has failed us miserably, we hopefully will see a positive change in our future. One thing is for sure, we have neutered any further destruction by a party that has been taken over by the extreme far left revolutionaries and placed its cronies in our White House and Congress. However, only time will dictate how this will turn out as we move forward to 2012.
Meanwhile, it is a positive sign that we might take back our country and get it on the right track to constitutional forum, free enterprise, and the common voice being heard. However, there is much more work we need to do, and it will take time and multiple elections to rid ourselves of this progressive cancer.
One area that the government could help boost and accelerate the economy is in our infrastructure. It is obvious that it needs it after years of neglect from politicians who bought their votes with entitlements. The lesson here is simple. If you want to help Americans to be the best they can be, give them a job, not handouts. A handout in the form of welfare puts them on the road to serfdom. A job completes their dignity as a man.
The third signal is the American consumer. Because of the down economy, many have been forced to cut their spending, reduce their debt and increase their savings. All of these things are good, especially if you understand the underlying consumer’s emotional drive.
Consumers consume. They may retreat, save, reduce their debt, but they must consume in order to be happy. I believe that we are reaching a tipping point in their emotional driver and going back to consuming is inevitable. It makes them feel good and justify their actions.
I do expect consumers to go back to buying. Every indicator points that they will be more informed and focused than before. Expect them to remodel or upgrade their home over buying a newer or bigger one.
The new home market will be focused on a scale of economy. It will be sometime before you see a reemergence in the vanity of the Jones’s. Expect the heart is in the home emotion to prevail.
Today, we are living in a chaotic transition period to a new age and a new economy. The pace of change has become so rapid that it will take a different type of firm to get its fair share of sales. To put it bluntly, we’ve experienced a major colon cleansing of those companies that will not adapt, and it still hasn’t finished.
This new environment will be driven by a consumer whose fickle preferences has quickly changed and adapted to its economic arena. For you the owner of a contracting company, this means you too must adapt quickly also. You must be focused, lean, opportunity-driven, customer-driven, and innovative and possess a sound knowledge base.
Business will be at the speed of light as rapid change will dictate the marketplace. Those on top of the wave will devour those who are too slow to change.
A key ingredient will be differentiation and the sowing of your marketing message must start now in order to reap a bountiful harvest later. The concept of being unique or different will be far more important than it was four years or even ten years ago. The key to successful marketing and competition will be differentiation.
The winners will be the owners of construction companies that notice this change and adjust the quickest. That means it will not be the big versus the small, it will be those who react quickly who will come out on top.
If you want to hire me to help you with a marketing message that will fit this new economy. Use this link