Record high levels of consumer spending give wholesaler-distributors reason to be optimistic, economist Alan Beaulieu wrote in the January issue of the NAW Advisor.
He warns that distributors who plan to hold onto cash in anticipation of a looming 2014 recession are missing an opportunity to grow in the short-term. In preparation for 2014, he suggests spending money to train sales teams to sell products with better margins.
“Our leading indicators are united in the projection of ongoing economic expansion in the US through the next two to three quarters,” Beaulieu wrote. “We have not changed our view regarding a mild downturn in 2014, but focus first on getting the maximum advantage out of the upside activity ahead of us.”
In addition to the consumer spending, employment trends are encouraging, housing construction is expanding, nonresidential construction is recovering, and new orders for durable goods increased in late 2012 to better than previous-year levels, Beaulieu wrote.