Factoring companies received some crucial economic updates from Peter Ricchiuti while attending the International Factoring Association Annual conference. Mr. Ricchiuti is known for his nationally acclaimed Burkenroad Reports, a student stock research program at Tulane University.
A hot topic he discussed was regarding the oil industry. With oil prices being down to $46 per barrel, the five states that will be affected the most are Oklahoma, Alaska, Texas, North Dakota, and Louisiana. The oil and energy industry will continue to see many changes as the United States continues to become more energy independent and no longer under the constrains of OPEC.
Low gas prices mean better profits for U.S. manufacturers. The oil age will peak in the next 10-15 years and then the industry will be faced with demand issues as people are looking to alternative energy, drive less, and become environmentally minded.
The industry will run out of demand before it runs out of supply. This is highlighted by energy consumption trends shifting from oil to cheaper, cleaner, and readily available natural gas. Trends are already showing that energy production will continue to increase as the demand decreases. This is encouraging news not only for the manufacturing industry, but also for businesses in transportation and distribution, which interestingly enough, rely on invoice factoring as a finance method to cover upfront fuel expenses.
Mr. Ricchiuti’s national economic outlook focuses on looking at the age of the work force and the baby boomer generation. Over the next 30 years the population of working age people will increase in the U.S. Where it will decline is in most other industrialized nations particularly in Europe and China.
Baby boomers will be retiring and businesses need to seize the opportunities created in that market. An invoice factoring program will help businesses build cash flow so that they are able to take advantage of growth opportunities. Contact Universal Funding at 1-800-405-6035 today.