I am often asked what will happen in 2012.
Well here are my expectations. Looking ahead it is easy to see significant changes in 2012. The excesses of early 200X will be brought back into line and returns on investment will return to stable earnings scales, not capital growth. Any business using technology has a opportunity to excel, taking advantage of the massive changes now underway.
- I expect that GFC 2 will arrive sometime this year affecting remaining developed countries. I expected during late 2011, but it never arrived to Australia News Link “The World Bank has slashed its global economic forecasts because of the high levels of debt in rich nations.”
- This change will open new opportunities and challenges for business just like that hitting ANZ in Australia right now. 130 workers have been given notice, more to follow. News article
- Interest rates will continue to fall until late in 2012. However funding costs for banks will rise. (An interesting scenario)
- Wages cost for Australia is beyond what small business can afford. Business have already started failing in 2011, and will continue during 2012.
- Another example is Kraft foods, 1600 jobs axed. News article
- Prices go in cycles, Australian House prices will continue to fall, reaching their lows sometime in 2013.
- Outsourcing year where business will be forced to offshore for survive. I have seen this coming for a while and now we are prepared for the busiest year so far.
- Technology, technology, technology in business especially retail and any service industry.
- Australia now starts to feel the heat just like Europe. Between January and November last year a total of 9178 companies went into insolvency administration, up 22 per cent over the average of previous years and up 10 per cent compared with the year before, data from the Australian Securities and Investment Commission shows. Taxman News
Looking ahead, and see tough times for some, exciting times for those who are prepared. Wishing you every success in your business, please “plan for the best” but “prepare for the worst” and you will do very well. Also suggest engage technology (cloud and on premise) in your business to improve your efficiencies. Kelvin Davis