60 seconds with Brian Beaulieu, ITR Economics

Brian Beaulieu
ITR Economics
Title: CEO
Location: Manchester, N.H.
Experience: Beaulieu has been an economist with ITR Economics since 1982 and CEO since 1987. He is the co-author of several books including “Prosperity in the Age of Decline.” He was the keynote speaker at the Supply Chain Outlook Summit last November sponsored by our sister publication, Supply Chain Management Review.
Primary Focus: For more than 31 years, ITR Economics has been providing workshops and economic analysis seminars in seven countries and to thousands of business owners and executives. Over that period, Beaulieu has consulted with companies that need a domestic and global perspective on how to forecast, plan and increase their profits based on business cycle trend analysis.

Modern: In November, you were the keynote speaker at the first Supply Chain Outlook Conference, where you detailed the upcoming economic forecast for the supply chain. As we start 2016, what was the most important message from your keynote, and what do you see on the horizon?
Beaulieu:  As an economist, I’m looking carefully right now at the positive economic growth trends that are coming in 2016 and 2017. We expect the domestic economy to do better across this 24-month period, which means companies should be thinking now about how to scale up for and accommodate this expansion.

Modern:  Why is that an important topic right now?
Beaulieu: Companies need to have the right levels of qualified labor, working capital and equipment to successfully manage their growth and be profitable. If they aren’t prepared in advance, they’re going to find that these key resources (labor, capital and equipment) are in short supply. Labor is obviously already an issue across many sectors, and you can’t get new capital equipment at the drop of a hat. The companies that have to scramble to create capacity won’t be as profitable as those that prepare ahead.

Modern: Our readers work in distribution and the supply chain. What does this mean for supply chain managers?
Beaulieu: Managing the supply chain means making sure you have enough materials and resources to produce at a profitable level. Going forward, supply chain managers will find that there are more throughput requests across every aspect of their supply chains. That will put added pressures on managers. For example, some will have to support growth at a time when they don’t have enough labor or the wherewithal to handle the increase in business. They may be forced to deal with a host of challenges that will wind up draining efficiencies and hurting operations.

Modern:  What else should readers know about the potential impacts of your positive outlook?
Beaulieu:  It’s important to know that all aspects of a business are profit centers, so be ready for the increased workload that’s coming your way. The United States consumer is in great shape and will be increasing his or her spending levels in 2016. Concurrently, we see positive indicators for the European economy. That means that the two largest global economies will be engaged in a new, rising trend that’s going to make its first run in 2016. In addition, as Mexico continues to supplant Canada as a manufacturing source/partner, the country will be a crucial part of everyone’s business plan for 2016 to 2018. Near-shoring is a growing reality, and Mexico is coming on very strong within that context.

You can download a PDF of Beaulieu’s keynote presentation from the Supply Chain Outlook Summit at tinyurl.com/q4e6lwu