The Impending Recession: Strengths, Weaknesses, Opportunities and Threats
A panel discussion on the impending recession.
Vectra Bank's Director of Lending Services, Kirk Monroe, recently participated in a panel discussion with The Opportunity Coalition on the strengths, weaknesses, opportunities and threats of the impending recession.
A number of economic analysts are predicting an economic slow down in the next 12-18 months, and The Opportunity Coalition thought it important to hold a discussion on what this could mean for local, regional, and national economies.
The discussion was lead by Brian Watson, Chairman and CEO of Northstar Commercial Partners . Along with Monroe, the other panelist were Earl Wright, Co-Founder and Chairman of AMG National Bank & Trust , and Dan Lane, Global Business & Economic Development Manager for the State of Colorado .
Watson asked the panelists a series of questions about the current economic state, and ended with his top takeaways from the discussion:
As China goes, so goes the U.S.
Wright stated that what is going on in China, particularly with trade tariffs, will have a large impact on what happens to the economy in the U.S. However, he does feel that the U.S. is in a good place economically.
Big enough to count, small enough to care
This statement came from Monroe, and is also Vectra Bank's tag line. He equated it to Denver being a large city, but not too large. It has an incredible economy and great growth, although it can be difficult to hire labor due to lack of candidates and housing prices.
It's all about perspective
Wright noted that every individual has a different world view. Each person's unique perspective will influence how they are affected by a recession, based on their personal finances, what industry they are in, and how they prepare in advance.
It's better to have your kids kicking dirt on your grave than to have them kicking dirt on each other
This statement also came from Wright in regards to wealth transfer. The largest wealth transfer in history is coming, with 69 trillion dollars expected to be transferred between generations over the next few years. Wright said that parents need to lay out what they want done with their wealth to prevent their children from fighting over it after they are gone.
Work at a company with integrity
This piece of advice came from Wright when asked what advice he had for someone just starting their career, or aspiring entrepreneurs. If you're not adding to the success of your company, you probably shouldn't be there.
This was Monroe's advice for those just staring their careers. He stated that you shouldn't be afraid to fail, and if your company doesn't allow you to fail, you're at the wrong company.
Keep your options open
This was a collective piece of wisdom from the panelists. Keep your options open, whether it be in your career, your housing options, or opportunities that are presented to you.
Debt usually leads to the most difficulties during a recession
Wright stated that those who struggled the most during the last recession where those who had large amounts of debt. Work now to get any debt under control to prepare for any upcoming recession.
Specialization is key
Specialization was brought up in two different ways during the discussion. Lane's advice to aspiring entrepreneurs was to specialize in particular skills. Have a few things that you are really good at to get your foot in the door, then you can expand your skill set from there. Monroe discussed specialization in terms of how businesses can prepare for a recession. He recommends to consider your strengths and expand on what you do really well to make it through slower economic times.
Overall, the panelists agreed that a soft recession is likely in the next year or so, but it will be nothing like the recession of 2008. If businesses and individuals plan ahead, they should make it through the slow down without being hit too hard in Colorado's strong and diverse economy.