This past week I attended a luncheon where the speaker was a leading economist out of New York. The title of his speech was Economic Outlook: Midyear Slowdown. Many experts in his field predicted steady growth for the remainder of 2010 with a slowdown coming in early 2011. This particular economist pointed to the following factors that caused the earlier than predicted arrival:
- The BP Oil Spill in the Gulf
- European Turmoil
- The Healthcare Bill
- Financial Reform
- The Stock Market Drop
The bottom line on each of these issues is uncertainty. Not knowing how dramatic each of these major issues will impact business in America has created the economical stall. The only guarantee is that every business in America will be impacted somehow by one or more of these changes.
At Texas Associates, we attempt to arm our clients with information beyond just insurance. We aren’t economist, but I have heard one of our partners often remind clients………”Think beyond the next job. Try and plan today for what your risk concerns will be 18 months from today.” Every business owner should be prepared for the following over the few years:
- Credit markets will remain to be tight, particularly for middle market businesses.
- For those fortunate enough to be able to borrow money to grow their business, the cost will be greater and terms challenging.
- Healthcare cost will increase, both in terms of premiums and administrative cost to the insured.
- The environmental concerns of the BP disaster will restrict capacity for insuring those risk, and more onerous contract language is certain to be imposed on businesses, particularly contractors.
None of the issues outlined above will keep our clients from overcoming the short-term challenges that lie ahead. Our pledge and obligation is to help them navigate thru what is on the horizon and arm them with the resources to mange the related risk.
If you don’t have a Trusted Advisor on your team, call our office. You will need one for the remainder of 2010 and beyond.