As regular readers know, my economic crystal ball tends to error on the optimistic side. I think that’s justified – we have over 200 years of data showing the US economy grows more often than it doesn’t, despite the best efforts of our government to mess things up.
Hearing the doom and gloom about the fiscal cliff and all the belt tightening occurring definitely excites the contrarian in me. Remember the last government shut down? Exactly – it had very little impact on the real world most of us live in. Don’t get me wrong; a lot of people’s lives were interrupted unnecessarily. If the fiscal cliff occurs, I think the same thing will happen. A relatively small segment of the population will be dramatically impacted in very negative ways, but for the most part, things will be fine. I’m not saying those people being impacted is a good thing; my point is the economy is a lot more resilient than the pundits lead us to believe. If anything, maybe going of the fiscal cliff will be a positive and the masses will realize just how irrelevant our government is and start to pay attention to where all our money goes. If you have low blood pressure, I recommend checking out the website www.cagw.org (Citizens Against Government Waste). If your blood pressure is high, please take an extra pill before clicking on the link.
I believe the investments made in our industry will begin to pay off. New substrates, faster equipment, and better print quality will lead to the PS industry seeing above average growth in 2013. I define above average growth as faster than GDP. The growth will skew towards those that have invested. As you think about your 2013 plans, remember, you can’t cut your way to growth.