North America label manufacturing executives convened at the 2013 TLMI Annual Converter Meeting in Palm Beach, Florida earlier this week. To kick things off, Alan Beaulieu, a principal at ITR Economics—who has now presented at the yearly meeting an unprecedented three times—shared his valued insight.
Beaulieu told the group to expect a consumer-led small recession in 2014. He said, ‘the next ‘good years’ will be from 2015 through 2018.’ Those interested in selling their business were advised to do so during this time, and for cash.
It’s anticipated that the good years will be followed by a significant downturn in 2019 where cash flow will be critical to business survival. However, the dip will be less impacting than what much of the world felt in 2009.
A global depression is forecasted for the decade of the 2030s when the US will have interest rates well above the Jimmy Carter years. For this reason, and because banks have saved an incredible amount of money in recent years, now is the time to borrow.
Borrow until you can’t sleep at night,’ said Beaulieu. ‘Modernize your facility now, and automate as much as you can.
Beaulieu warned the group about wage inflation: ‘you’re going to have to spend more money on training people with the right attitude and aptitude. Poaching will begin.
‘Profit sharing is a great way to enhance profitability and is a way to make sure that your best people stay. Don’t get left with the C squad trying to compete.’