Ford Overtakes Honda…
…as the F-150 becomes the most stolen vehicle.
The Honda Civic is still the most stolen car, but it also used to be #1 overall.
In case you are wondering, it is the 2006 model F-150 that is the most stolen.
On to business…
Economic Update
The U.S. Economy grew by 5.5% in 2021
That’s measured by Gross Domestic Product, the total output of the U.S.
While that really isn’t hard to do given the low bar that 2020 set, it is significant nonetheless.
GDP shrunk 3.4% in 2020 – covid will do that.
The 4th quarter grew by 6.9% - impressive.
It’s the strongest year since 1984 when GDP was 7.2% - you may recall that was the year it was “morning in America…”. Look it up.
Rising inventories accounted for 71% of 4th quarter GDP growth. I guess all those ships out in the harbor finally docked.
The expectation for GDP in 2022 is 4%.
Interestingly, consumer spending fell 0.6% in December, the first decrease since last winter.
Omicron and inflation made an impact over the holidays, evidently.
An Observation - The Covid Effect
With Covid, more kids are going to home schooling and more kids are NOT going to college. Instead, they are following parents and relatives into the trades so they can make a living for their families.
College enrollment declined 5.8% but the enrollment of males was down more than 10% from 2019 to 2021.
This leads me to the next point. If these kids are going into the workforce instead of going to college…
In the last couple of Reports, I have talked about employee retention, but here is another angle.
By educating your workforce and giving them the opportunity to improve through degrees, certifications, and experience and then supporting them when they want to move on, you are building your company’s alumni network. The challenge is being willing to take the long-term vision and realize that your company will gain a reputation for having the best opportunities for your employees. When you accept the fact that your employees will leave at some point (as good employees do), you might as well make it a win-win for both the company and the employee.
Or you can train them to move up in the company and retain the talent you have been paying to train. Now that’s a win-win. Just a thought.
Your Employees
I recently had the privilege of meeting with the president of a small company in a heavily regulated, mature industry in a market area that is shrinking. In spite of the challenges, he has kept his employees on board for 10 difficult years, motivating them by his actions, which back up his words. It is clear there is great mutual respect in his organization. Do you strive for that same mutual respect in your company or department? That would be an excellent new year’s resolution.
I mention this because the CEO of UBS - Union Bank of Switzerland - was told to pack his bags by the Board of Directors less than a year into his job.
Why? For violating the very covid protocols he helped to create. Evidently, he thought the Board would write a strongly worded letter; instead, they sent him a very strongly worded pink slip, with his last paycheck enclosed (or is that a California thing?). Regardless, the board accepted his resignation.
I have to admire the board for not putting up with the nonsense. Remember, as the owner, president or manager in your company, you set the standard.
Keep your standards high.
And speaking of keeping your standards high, Valentine's Day is in two weeks. You have been given fair notice – don’t forget!!
