I just spent some time digesting the latest report from ITR. I have a sinking feeling in my stomach, mixed emotions. On one hand, the recovery is underway, but the next bump in the road is only a scant two years away. I have shared this news recently as a “tapping of the brakes,” but this month’s ITR Report uses the “R” word.

“We see the issues of future higher interest rates; higher taxes; federal, state, and local government deficits; unfunded pension liabilities and inflation (including energy and food) as contributing factors to what we think will be a recession that begins in late 2013 and encompasses all of 2014.”

Driving With Both Feet
And I am only talking about the gas pedal and the brake pedal. Between now and 2013, you have no choice but to charge ahead, as fast as you can prudently go. But keep one foot over the brake pedal. Depending on your industry, and some are still reeling (non-residential construction), be careful about building overhead that you cannot easily get rid of. The good news is that we have some warning and time to position ourselves appropriately.

I encourage you to subscribe to ITR, and pay attention. You can find out more information at this link ITR Trends Report.