Now that the new year has begun, we feel it’s an opportune time to talk about the challenges and opportunities ahead in 2019, both in the broader industry and internally at Pentaflex. Here is a brief overview of the year to come:
The Challenges Ahead
There is currently much talk in business media about 2019 bringing another economic downturn. While a full-blown depression seems unlikely, according to Forbes, there are red flags indicating there may be another period of recession. These indicators include:
- The Federal Reserve is increasing interest rates and minimizing its securities portfolio. These actions are typically indicative of increased economic risk, including recessions.
- America’s tenuous trade relationship with China. If the United States puts an embargo on Chinese imports and cuts exports to China, consumer prices could rise and American manufacturing supply chains could be disrupted.
There is no denying the red flags that currently exist. There is also little we can do to change the current economic or political environment, and current forecasts leave an unclear picture of how exactly the manufacturing sector will be impacted.
What we can control, however, is our attitude. At Pentaflex, we choose to remain optimistic—and there are good reasons for that.
In spite of economic uncertainty and volatile international relations, we’re projecting a strong, growth-filled year in 2019 for Pentaflex. The following factors suggest things may be looking up for our company:
- The trucking industry – one of the largest industries we serve – is anticipated to remain strong throughout 2019.
- If passed by Congress, the updated USMCA agreement will greatly benefit the automotive sector. Part of the agreement is a requirement that 75% of an automobile to be produced in NAFTA regions, a boon for businesses such as ours.
- Deloitte also reports that the U.S. manufacturing industry seems to be on track and will probably exceed projected growth for at least two consecutive years.
We currently have many projects in the works and we think the future looks bright for our existing initiatives and the new ones that we will undertake this year. We are very excited for what the future holds for us and plan to continue delivering the highest quality products to our customers.
Facing the Unknown
What is certain is that a fair amount of uncertainty lies ahead. Here at Pentaflex, we’re confident that our robust supplier network can efficiently adjust to any volatility caused by economic or trade challenges, enabling us to continue uninterrupted in providing high quality service to our customers. We will continue to be the go-to supplier for customers who require complex, heavy gauge deep drawn sub-assemblies and components, offering best-in-class solutions in the most cost-effective and time-sensitive manner possible.
To learn about the latest at Pentaflex or to learn more about our services and capabilities, contact us today.