Budgeting, Bottom Lines, and the Economy, Economy, Economy

Published: January 01, 2003, By Yolanda Simonsis, Associate Publisher/Editor

Long ago a realtor told me there were only three things to keep in mind when buying real estate: Location, Location, Location. As we enter 2003 and finalize our business budgets, there is little argument over what occupies our thoughts as we pour over the subtleties of our expected performances for the year: the Economy, Economy, Economy. It's probably the single most important — and potentially damaging — variable in predicting where we'll come in on our bottom lines.

So this month, as is our tradition, PFFC provides its annual “Economic Outlook,” (p38) reported by contributing editor Robert Marsh. This year Bob interviewed two economists for his special report to yield still further insight into our present and anticipated economic situation and the conditions that will affect it. Once again, we invited the participation of the always dependable and reliable Robert Fry, DuPont's senior associate economist. New this year, we've added the comments of Brendan Lowney, VP--macroeconomics at Resource Information Systems Inc. (RISI).

Both Fry and Lowney are joined by others in our industry who echo predictions of a sluggish, frustratingly slow recovery characterized by erratic stops and starts. Andrew Paparozzi, National Association for Printing Leadership VP and chief economist, explains, “Business picks up for a while and then slows down again…What all this means is recovery from our worst recession in nearly 30 years is going to come in very small steps.”

The economy of the US, while of greatest and most immediate importance to businesses calling it home, is inextricably tied to the health of a global economy. Exports and imports play a crucial role in defining the strength or weakness of the US dollar. Purchases of goods and services increasingly are trending toward global buying models. It's not enough for both buyers and manufacturers to focus on core business and structural issues; “They are also consumed with streamlining worldwide procurement processes and implementing technology on an enterprise-wide basis,” says a statement by the Printing Industries of America, commenting on a recent study, Globalization of Print Buying, by Graphic Arts Marketing Information Service (GAMIS).

With all these delicately interlaced variables at work playing havoc with or rending accuracy to the annual guessing game I call the budgeting process, I “volunteered” to organize a panel of experts to share insights on the economy and marketing trends during the CMM International Exposition and Conference, coming April 14 thru 17, 2003, to Chicago's McCormick Place. I urge you to preregister for this conference session, titled “Economic and Marketing Trends in the Global Converting Industry,” slated for Monday, April 14, 8:30 am to 12 pm. The abstract and conference speakers are shown in our house ad on p75, but look for more details on our Web site and in next month's issue.

Lastly, don't forget to return your 2002 US Economic Census forms due February 12. The resulting data from this census is important to you for marketing, planning, and investment decisions.