My last post talked about rates, and truth be told, rates and inflation have dominated most economic talk the last year-plus. And I’m no exception.
But there’s another aspect to the economy that isn’t discussed as much, and although this other aspect is a very good thing, it is also part of the very reason for inflation and higher rates. I’m talking about demand.
Quite frankly, demand is the very reason for your company’s existence. No matter what you make, no matter what you sell, or no matter what service you provide, you are filling demand.
From the companies that I talk to (and it’s a LOT of companies), demand is still quite strong in most industries (ironically, it’s my own industry, lending, where it’s still softer than we’d like). But for many companies, especially in service industries and many types of manufacturing as well, demand is there. Companies cannot make products fast enough, and service companies are increasingly being spread thin. Have you tried to find a reputable contractor to build you a deck? Get in line. My cousin is trying to have an in-ground pool installed – he’s on 2024’s schedule. Yes, a year from now.
Situations like this are where opportunity springs. Can my cousin’s area use another pool contractor? Yup. Or could the current pool contractor expand (as to maybe prevent another company from cropping up because people really don’t want to wait a year). Yes again.
Take some stock – how is your demand? If it’s high, and if people are waiting, trust me, there’s someone out there right now saying “you know what this area needs? Another <insert service>.” Or one of your competitors is saying “if we add another crew, we could raise sales by $XYZ”.
Think about this – we have “doom and gloom” economic headlines, and a government that exactly nobody is happy with. Yet demand in many industries continues to rise, and the overall economy remains strong, adding job after job.
If your demand is still strong, it might be time to really think about addressing it. Could equipment financing or vehicle financing help? If so, you know where to go!