6A – Identifying Opportunities in Economic and Regulatory Trends
Economic 1: Hurricane Florence àBulk Trailer Demand Increases . . .
a) Source: All national weather channels and my family’s contracting firm just got a contract to help with clean up.
https://www.freightwaves.com/news/weather/bulk-trailers-in-demand-for-florence-cleanup
b) Why opportunity Exists: I saw this opportunity because my family will likely contribute to the cleanup efforts because we are emergency contractors. There will be a surplus of damaged goods and a shortage of staff to clean it up àit’s an economic goldmine. This is caused by the inconsistent nature of the event; there is never enough cleanup work on a regular basis in any specific area.
c) Who are likely customers: The general public, state, local, and federal agencies as well as non-profits.
d) Why do I think they are: They have a fairly pressing need to receive a job done right so that they can begin to rebuild and readjust. The matter is urgent because most people will be out of work until they can get their personal items in order. This further raises the price.
Economic 2: Human Wastewater for Ag
a) Source: Science Daily àHuman Wastewater Valuable to Global Agriculture
https://www.sciencedaily.com/releases/2018/08/180816153137.htm
b) Why opportunity Exists: I saw it because I work in the argicultural sector of the U.S. and water use is a hot topic. The reutilization of human wastewater for crop fertilizer and irrigation may harm the existing fertilizer industry but may also leave the door wide open for firms and farms wanting to bring agriculture and water treatment closer together, both fundamentally and physically. For example, a water treatment facility may decide to purchase land nearby and pipe their surplus to either a subsidiary or leasing farm. Both would be examples of opportunities for diversification.
c) Who are likely customers: Likely customers would include farms that are already close to water treatment facilities as well as water treatment facilities with the capital and desire to diversify into agriculture on their own or leased land. Ultimately, general consumers will likely be consumers of these goods if they overcome the ensuing stigma of eating food grown using wastewater.
d) Why do I think they are: I believe the opportunity will be too good to pass up, especially if subsidies and rewards are offered for being more green (or brown).
Regulatory 1: Tariff’s Have Had Little Effect on U.S. Economy so Far
a) Source: Wall Street Journal à“Most Economists See Tariff Effects on U.S. Economy as Limited”
https://www.wsj.com/articles/most-economists-see-tariff-effects-on-u-s-economy-as-limited-1536847200
b) Why opportunity Exists: I have been studying economics at the University of Florida for the last four years and we discussed tarrifs quite often. Savvy investors will notice this opportunity so the time to act is not, not so much later. There is a decent chance that increasing trade tensions (via current and upcoming legislation) will result in a more consequential trade-war between the U.S. and, essentially, the rest of the world. This will likely result in opportunities to invest in firms overseas will be lucrative because their goods will be cheaper when sold to other countries compared to the U.S. Additionally, it will be a great time to purchase stocks in U.S. agricultural firms, as they will almost surely go on sale during the tumultuous time.
c) Who are likely customers: Stock traders and financially savvy investors both in the states and abroad.
d) Why do I think they are:
I think they are attentive enough to see the opportunities early enough to them employ their intelligence and knowledge to capitalize on the opportunity.
Regulatory 2: “Democratic Legislators to Release Police-Reform Legislation”
a) Source: I think similar policies will be passed and it will likely decrease the number of applicants to the police force even further. One of my good friends is a sheriff’s deputy in Northwest Florida and he said dozens of deputies have resigned just in the last year. He also said several branches in Texas filed far more resignations than applications since the four officers were murdered last year.
Pittsburg’s NPR
http://www.wesa.fm/post/democratic-legislators-release-police-reform-legislation#stream/0
b) Why opportunity Exists: I saw this issue because I have a friend who is in the industry and have been watching the issues leading to these new peices of legislation. I believe it will result in increased pay to law enforcement officers due to lack of supply and increased demand. It will be a great time, financially, for those seeking employment in law enforcement.
c) Who are likely customers: Potential law enforcement applicants and current staff who decide to stay.
d) Why do I think they are: They will likely be some of the only people interested in the positions. Other individuals who were not previously seeking employment in law enforcement may decide to apply if wages rise high enough.
I had one of the same Regulatory examples as you being the Tariff issue. I think that the article brought up a really good point as well as your overview of it because even though the tariffs are not affecting us currently, it is not to say that it will not affect us in the future. It is very important that we prepare for any economic changes that could affect how businesses operate on a day-to-day basis. I think all the trends you have listed provide potential opportunities and can lead to problems in our society if businesses do not learn how to adjust to them.
ReplyDeleteHi Jerrett, I also noticed that the waste of watering has been a hot topic all over the world nowadays. People not only use water to make a living but also regard water as a essential media to make chemical compands. I would say that water has been a more and more valuable resource for human beings as water is becoming more and more useful.
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