5/4/2009
NEWS BRIEFS
Beaulieu at NFDA: Think Ahead Half a Business Cycle

“This downturn is the worst in your business career,” economist Brian Beaulieu declared at the National Fastener Distributors Association spring conference. “But it doesn’t last forever,” he added.

“There is no hope for the next two or three quarters,” Beaulieu acknowledged, but then advised NFDA members to “buy forward” for a better economy in 2010. “Lock in lower prices” because in 2010 commodity prices will rise.”Think half a business cycle ahead,” Beaulieu counseled. “Borrow as much as you can in 2009 and 2010,” while interest rates are the lowest in 35 years. “Cash at the bottom of a business cycle you rule the next cycle.”

Beaulieu, of the Institute for Trend Research, predicted 2012 will be “the next window of opportunity to sell your business.”

“Fasteners are not down as much” as other segments of U.S. industrial production, Beaulieu noted.