Every year at this time, business leaders take a look back at their plans and goals for the current year to see how well they were able to stick to those plans and how successful they were at attaining their goals. Some years they hit home runs and some years they completely strike out. In any event, the exercise of taking a true “no holds barred” assessment of their company’s performance is most critical.
In addition to this insightful business assessment, these same business leaders should evaluate how “noise” from the current year impacted their 2019 business decisions, and, if this “noise” will impact their 2020 plans and goals as well.
A look back at 2019 presents a variety of “noises” that may have impacted many business decisions, some perhaps for the short term, some for the long term, and some not at all.
In 2019, there were a number of major “noise” events, including many trucking failures that impacted both the Truckload, as well as the LTL segment of the industry. At first blush these business failures brought fears of the “R” word returning…..RECESSION. That’s because the transportation industry has traditionally been a bellwether of things to come. When the industry is in a downturn, which trucking closures would surely indicate, it sends signals that the economy is about to slow down.
However, the actual trucking failures we experienced in 2019 apparently came about due to several carriers over extending themselves financially; several having unprofitable contracts with major shippers and, even some trucking business owners just wanting to move on and do other things.
Actually, the numbers of trucking closures in 2019 were in fact significantly higher than they were in 2018, so it appeared these carriers were dropping like flies, when in reality the industry remained fairly stable.
Another loud “noise” heard in 2019 was the “trade war” between the US and China. This was an almost daily, up today, down tomorrow and vice versa effect on businesses around the world. And it obviously did impact many business decisions and it certainly did impact many company financials as well.
Now, there is word that an “initial” trade deal between China and the US has been agreed to by both parties, and the imposition of new tariffs that were supposed to go into effect last week are now on hold, perhaps temporarily, perhaps permanently. We’ll know the answer to that question sometime in 2020 for sure.
The “noise” heard on this front was and is a very complex one for all businesses involved in the Asia/US trade lanes, and what company isn’t impacted. We suspect there will be a lot more trade war “noise” in 2020 and perhaps even beyond 2020.
And what about the “Retail Apocalypse” or the “Amazon Effect” how have these “noises” impacted business decisions in 2019 and how will they impact business decisions and business goals in 2020?
And last but not least is the new USMCA trade agreement between the US, Canada and Mexico. This is the trade agreement that is scheduled to replace NAFTA. From what we hear, (at least at this point), this new trade deal is in fact a real win for all countries involved. Now that will truly be an amazing fete, if it is finally implemented.
What all this “noise” means is that all businesses are operating in a new daily business disruption environment that constantly challenges the status quo. Businesses need to listen to the “noise” they hear, try to assess if the “noise” is really something that will impact their businesses either positively or negatively and then make wise business decisions based on their own gut feelings of the facts, not the “noise.”
How will your company react to the “noises” it will hear in 2020? Will you make business decisions based purely on the “noise” of the day, or will you attempt to wait and digest the various messages coming from the “noise” and make sound business decisions based on facts.
At this time of year, we want to wish you a Very Happy Holiday Season and a New Year filled with health, and happiness.
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