The recent recession has been the worst since the great depression but there are strong signs that the economy is in the beginnings of a strong recovery.
The largest US corporations are using the recession as an opportunity to restructure and become more efficient. In these times inefficient and uncompetitive businesses are eliminated, costs are lowered and the business is poised to grow vigorously.
However, there are many parts of the economy that will take a while to recover.
Look at the facts:
FACT 1: Labor costs are down 2.3%, manufacturing productivity rose 5%.
FACT 2: Companies are refinancing debt at a lower rate. As a result corporate balance sheets have risen by 28%.
FACT 3: Corporate profits are close to an all time high.
FACT 4; Corporate cash reserves are more than $2 trillion, a 50 year high, meaning companies can really drive growth, expansion and acquisition……. as long as Europe doesn’t fall apart. The future for the country looks great. Unfortunately this will not, in the short term help everyone as with the restructure and increased efficiencies many types of jobs will disappear. There will need to be significant retraining of people, but we will be a more powerful more nimble America.
Then there is the Kodak bankruptcy. This is what happens if you don’t continue to innovate, if you don’t stay ahead of the curve. Although Kodak dominated the film market they didn’t continue to innovate and the digital revolution blew them away.
Remember, now is the time to be successful, there are more millionaires made during a recession than at any other time. Take advantage of these times, get committed, focus on your business, be innovative, take time to learn what you need to do to make your business successful. Take on a mentor, anything that will help you to move forward and succeed.
America has always been about initiative and innovation, about hard work and commitment. That is what made America great. This is the one country where anything is possible. So let’s pull together to put this recession behind us, and the political divide in this country.