Issue link: http://psai.uberflip.com/i/1276154
ASSOCIATIONINSIGHT Portable Sanitation Association International News BIWEEKLY EDITION AUGUST 5, 2020 Page 4 Continued on page 6 Economic Outlook, Part I: Navigating through Uncertainty…continued from page 2 Longer term, the Fed will focus on maintaining low interest rates and kick-starting "effective" inflation at levels that support the broader recovery. It could take other actions—such as buying long-term bonds—to help engineer recovery over several years. All of this is interesting and important information. But what matters more is how the underlying factors in these larger trends affect your particular market. If you depend on contracts related to air travel, tourism, large group gatherings, and other special events, these macroeconomic issues are going to affect you considerably over the next year or two. If your business is based on things less affected by COVID-19 such as agriculture, mining, and some types of construction, the overall trends will have less of an impact. However, you can make adjustments in your business to thrive even during times like these, as numerous portable sanitation companies are doing every day. In part II of our economic coverage (starting on page 8) you will learn some ways your colleagues have found to "make lemonade out of lemons." Things to Watch From an economist's point of view, a recession ends when certain market requirements are met. From a personal point of view, you care most about your ability to run your business profitably, pay your bills, and secure your financial future. So now is the time to adjust your sails accordingly. In the short run, here are some things to watch to help you gauge the economics of your particular business and market area. 1. Legislative action or inaction. In the absence of growth, economic stability is currently an important goal. When and how consistently stability will return—in spite of the uncertainties of COVID-19— depends heavily on Congress and your state legislature in the short run. As of this writing, the first relief package has expired, and there is much speculation about when and if Congress will pass another one. Your state legislature may also be considering relief for your state or county. There are abundant arguments for and against such action, and in the absence of actual proposals, the PSAI cannot offer insight on the implications of potential legislative relief. What can be said is that prolonged uncertainty is not our friend. Ambiguity tends to cause people and businesses to hold off on spending decisions, and this would generally reduce the need for portable sanitation. If legislation is passed, consider the impact on your local market. Will it tend to promote construction activity, events, or activities such as COVID testing sites? Will there be school/ facility reopenings that will increase the need for portable sanitation? Will the actions provide money to local governments that will then need more portable sanitation for the services they run? Watch where the money will be spent and translate that into portable sanitation sales. 2. Your local COVID-19 numbers. A great deal about how easily you can carry on business will depend on how many people are sick locally, how many have been exposed, state policies, and how that is affecting your institutions. For example, many convention centers and hotels are seeing events that were planned for the fall of 2020 cancel due to increased COVID risk. Areas harder hit by COVID are seeing more cancellations than areas with less risk.