Executive Insights Strategic Planning

Halfway Through 2024, Are You Where You Expected to Be?

By Jackie Greene on June 27, 2024

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Jackie Greene

Jackie is the Vice President of Economics at ITR Economics, and oversees forecasting and applied research.

Are your bookings on track with your projections?

Is your revenue on track to meet your year-end goal?

Throughout this cycle, there is noteworthy variability across markets. A mixed bag of market expectations for the second half of the year could create drag on your business or provide you some nice lift as you look to meet your goals by the end of the year. For instance, US Industrial Production is plateauing and will generally vacillate around this level through the remainder of 2024. By contrast, the services side of the economy is growing and will continue to do so for the remainder of the year.

Even within these larger segments, there is variability that could impact your outcomes.

  • US Defense Capital Goods New Orders are in recession (5.0% below the year ago level), but the trend is expected to reverse and defense spending will rise by the end of the year.
  • US Heavy-Duty Truck Production is 3.4% above the prior year, but Production will end 2024 3.9% below 2023.
  • US Single-Unit Housing Starts are up 13.5% and the rate of growth will slow to 6.3% by the end of the year.

Your future is not mandated by the various market trends, but it is certainly influenced by them. Having the appropriate benchmarks and outlooks for your business can help you get a better read on the future and give you the power to navigate through uncertain times.

Many markets will finish 2024 weaker than 2023. Is your business prepared? If not, you may find yourself cutting expenses to preserve EBITDA. However, cut carefully. Growth is projected to return for many markets in 2025, and you do not want to be left behind should you not have the resources in place to capture new opportunities.

This does not mean that 2025 is all smooth sailing. While we anticipate growth returning to many industries that year, not all industries will recoup the losses. The following are examples of industries that will grow in 2025 but will not surpass their current level of activity:

  • US Construction Machinery New Orders
  • US Computers & Electronics New Orders
  • North America Light Vehicle Production

Ensure you have the right benchmarks for your business so that the actions you take now are not just reactionary to the current market environment but are helping you better align yourself for future growth.

For further insights on the above markets, as well as many others, each month, start your ITR Economics Trends Report™ subscription today.

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