Signs continue to point toward growth in the coming months, but wholesale-distributors should take a long-term view before they commit to adding new jobs, economist Alan Beaulieu wrote in the March issue of the NAW Advisor.
“I would suggest consulting our forecasts for your individual industry for 2014,” Beaulieu wrote. “Would it be worth hiring and training new workers if you face a downturn in three quarters? After 2014, we will know better the costs of Obamacare, which will make hiring decisions easier.”
Beaulieu’s firm, ITR Economics, has forecasted slower growth through the end of 2013, with a mild recession in 2014. Distributors who sell into the retail market
will be the first to feel a slowdown. “Be careful of inventory levels,” Beaulieu wrote.
He also advised distributors to borrow money now, as corporate borrowing costs are rising.