Epcon has been fortunate to have several major projects, which have carried forward into 2023. And, we are sufficiently busy, with a backlog of 6+ months. While I tend to be an eternal optimist when it comes to the economy, and business outlook in general, there is a lot of grim news surrounding the financial sector due to inflation and the Federal Reserve raising interest rates. Now we have a new phenomenon to deal with – the banks.
The fault line or the weakness of the banking was totally predictable. I do not know how and why the financial experts and the bankers could not see the problems with the hundreds and billions of dollars for loans at near 0% interest rate, for the past few years, and now the cost of money lending is up to 5-7%. And the big banks will need to bail out these smaller and weaker banks, and the US government will have to bail out the bankers. This bank failure cannot be ignored nor slid under the rug.
While global supply chains are gradually improving, US employers are still desperately looking to fill several positions across industries. From restaurants to construction to manufacturing, a tight labor market continues to affect all segments of our economy.
The Federal Reserve is determined on raising rates, regardless of the potential negative effects. The FDIC does not care about unemployed people and the problems they face, nor do they care about the investors or the stock market. Since the Federal Reserve’s only tool was that they had to raise the interest rates – whether it works or does not work. Every month the favorable employment numbers are coming out and more and more people are going back to work. And that spooks the Feds and the stock market. This is a very unsettling situation.
However, we are fortunate at Epcon to have a solid business and strong financial base to navigate any uncertainty. We are laser-focused on filling our pipeline and making the year 2023 a banner year. Thank you for your continued interest in Epcon!