The Outlook for 2021
ITR Economics 2021 article “Why We Prefer Looking at the Economy ‘By the Numbers‘” tells us that “The outlook for 2021 is one of rise. That is what the data is telling us.” ITR points out that people are wired to watch out for threats and have a need to react. That instinctual reaction, if we are unaware or impulsive, can have detrimental impacts: “… delays, missed opportunities, loss of market share, and/or loss of profits.” Let’s have a look at the economic forecast for 2021 by the numbers.
Most of the industries are recovering and improving, with the exception of the hospitality and travel industries. The article states that if the economy were to falter, it would not be due to economic fundamentals. The data show that those fundamentals are solid.
The Data
The economic fundamentals data show that the forecast for 2021 has a foundation for a rising economy. The Disposable Personal Income (DPI) trend has already increased sharply. Unemployment numbers have recovered very quickly and even indicate that the economy is fundamentally healthier than it was coming out of prior recessions. Retail sales are in different stages of recovery, depending on the sector. Department stores are hit the hardest hit and are still in the negative, but restaurants, healthcare, education, and professional & business services are running strong.
The Green Industry
For the Green Industry, the demand remains very strong and we can expect a strong 2021. Rising personal incomes, increasing home values, and more time at home will continue to drive demand for home- and landscaping improvements. Especially due to the pandemic, people want to spend more time in green environments, such as their own backyards, as well as parks and open spaces.
Infrastructure and Construction
For some construction segments, such as infrastructure, demand will remain soft until the federal government implements an increase in spending. Cities and States are in bad shape because of reduced tax income from business shutdowns. For example, there are 1.077 million fewer jobs under the heading of Total Government. Infrastructure is in serious need of an overhaul, but where will the funding come from? Hopefully, as a nation, we seize the opportunity to creatively fund infrastructure which will immediately provide ripple effects in the economy while literally creating the foundation for our future.
Let’s All Take The Next Leap
Nature threw us a curve ball in 2020 and it caused us to realize that we are stronger when we pull together. This is the time to continue to maximize the strength and results of our company teams (the Wolf Pack here at WC) and invest in well thought-ought technology. Technology can be an outstanding tool when we aim it in the right direction!
Read more Green Industry articles.
