Our ability to influence
the economic direction of the U.S. is increasingly further away (and moving further) than ever before. Personal political opinions aside, the debate of the right and wrong direction is irrelevant as we discuss the ability of Americans to prosper. If you ever experienced a large corporation committed to a change, you understand that change will happen. The resources and commitment to such an initiative is unstoppable and some calculated carnage is expected from the leadership. The pendulum will swing too far. Change will happen too fast. Services will be lost and the remaining services will become more difficult to utilize. The large and conservative financial institutions will hunker down to protect themselves. Good people will lose their jobs along with the underperforming. That will all happen and then systematically resources, people and services will be “put back” in a hopefully more productive way. After experiencing discomfort, the American labor force will embrace the changes and the modifications. We will figure out how to prosper in the new normal not only as businesses, but as providers for our families. Change is not a bad event. It’s a means to spike opportunity and reset areas of waste.
The map below illustrates the potential impact of the publicized intentions of federal layoffs. Although the highest volume of Federal employees resides in the DC area, Federal employment spans across the country. As any major employer changes the number of employees in an area, the local economy will change as well. In reality, local businesses that either support the local industry or provide services to its community will be impacted as the projected labor change happens. How long the impact will last and how difficult it is yet to be seen. And take note, the “impact” could easily bring a positive opportunity in the community as the chances of a negative consequence. The outcome is a matter of our individual vision of the situation and attitude for change. Everything lies within our ability to understand the potential direction of the market and our clarity of our vision and goals for our families. Our own personal future lies squarely within our vision, understanding and personal goals.
How can the head of a family control their destiny?
Let’s look at industries that are trending in a positive direction regardless of any economic factors. In other words, we understand that the local landscape has and will continue to change. We need to understand the new normal items that people hold as high priorities in their family’s lifestyle. The business world learned a great deal by the Covid experience. It is likely one of the most dramatic national and global economic events since WWII. Most people realize that their home is more than a roof over their head. It’s a place of shelter, a place for family, it’s a place of peace (sanctuary) and potentially a safe and economical place to generate additional or replacement income. Those widespread feelings have changed the trajectory of U.S. businesses. People and businesses refined strategies to effectively measure the production of employees working remotely. Employees (including 1099 people) refined methods to maximize the sharing of time between work production and personal interest such as family, hobbies and health. Remote, semi-remote and home-based business operations are stronger and more sought out than ever.
What do those feelings impact?
At the top of the list, home services. Businesses that repair, improve, clean and customize the “home” spaces are booming. They are seeing upwards trends in every category and it’s hard to find reasons that the trend will change. Their customers are finding ways to pay for and rationalize improving their living space.
Better utilization of the space brings a feeling of comfort and efficiency that customers love and enjoy. Homeowners are also being rewarded by the continued increase in home values relating to an increase in equity.
For those with the opportunity to use their home for work or starting a business, they are rewarded by increased tax deductions, reduced costs in commuting, reduced costs in “professional” clothing and cleaning and other ancillary items such as child or elderly care or the assistance just to get the kids off the bus.
For many, the home has become an effective tool or a hub for their live style, quality of life and work/life balance.
Pets have always been major part of society and a reflection of the pet owner’s personality or even status. Over the last decade or so, pets have evolved into an integral part of the family. A growing number of pets are given the status beyond a family member, but children of the family. Also, there is a growing trend within the Millennials and Generation Z that are choosing not to have children. They are adopting pets to share their lives and love. Further supporting the pet industry’s growth was Covid. During that time and for various reasons, the number of people adopting their first pet or adding to their current pet family exploded to record numbers. Taking into consideration the improved status pets have in the family as well as pet owners spending more time in and around the home (with their pets), all products and services to promote the care and wellness of their expanded family are in great demand. Realizing that pets are growing in importance to the family, consumer confidence is on the rise, the priority of pet expenses has increased and that pets have a lifespan around a decade or more, this industry definitely ranks high in selecting opportunities for personal wealth.
Rounding out the top three industries and not the least of importance is child and/or senior care industries. The senior and child industries are combined for this article. The sandwich generation “those caring for both children and their parents” is a growing segment of the population. Housing costs have escalated beyond the reach of first-time home buyers. This forces the family to stay together more than ever before. Recent graduates entering the workforce are making deals with their parents to stay in the home and “save money”. This adds stress on Parents to continue their careers and continue to support children with potentially much more expensive needs. Comparatively, seniors have the ability to utilize the equity in their homes as a resource. However, a growing number do not need, want or can afford full-time care in a retirement community. They need the personal interaction of their children to assist them.
The needs of seniors, although funded, add additional stress to the “middle generation” that is already struggling with time as a resource. Seniors are placing a priority use of their funds on for their care, wellness and entertainment. This includes support of the family’s needs, modifications to the home and entertainment beyond their own personal needs. Considering that the new normal is that all these people are residing under one or two households. Each segment requires numerous resources to support the family as the middle generation continues in their career. Resources are needed to support the family in everyday life as well as providing an escape through entertainment. Obviously, the middle generation absorbs the heaviest burden of responsibilities. Time and effectiveness for that group are the most valuable commodities.
Businesses that support the young and older generations are in increasingly high demand. As stated earlier, the focus of this is all around the primary residence. (Don’t forget pets are an addition to the responsibilities). Our society places a high value on the family and the head(s) of the household to provide a quality of life for those within their family. Social media has redefined quality of life in a very materialistic fashion. The demands for resources to support the generations that are being forced together is a solid market.
The concept of control has a few key elements. There must be an understanding and acceptance of that which are driven outside of an individual’s sphere of influence. Although friends, family and coworkers all have opinions, final acceptance is with the person in the mirror. In other words, people want to be helpful and have an opinion. Your goals and your situation is unique to you and your family. Use others to help gather information and lead your discoveries to well-founded sources. Utilize a professional to create a path to achieve your goals. If you find yourself being influenced by the opinion of others, regroup. Your goals are created by you. Understanding your ability to influence progress will influence the time and resources needed to achieve the goals.
Another key factor in developing control is knowing your “why.” Understanding and committing to your “why” is the motivation to doing the things that are not pleasant. The “why” provides a direction and identifies priorities in everything that is done.
Finally, having a trusted advisor to provide knowledge (such as above) is critical. These advisors assist with decisions that you can control and are made from a position of strength and knowledge. Trusted advisors should also be made aware of your short and long term goals. They can provide great value in enforcing accountability as distractions begin to cloud judgement.
As you consider taking control of your career and financial stability, consider engaging with a non-bias industry consultant. They can provide the latest information while being a strong sounding board for you and anyone else in the decision process. I spend numerous hours each week coaching people who are attempting to recapture their vision of the future. I welcome the chance to help you.