Things continue to be rough for our industry. Financial results remain soft; discussion of bankruptcy in other quarters abound. There is little optimism out there.
With just cause. While it has taken far longer than it should have, the industry is finally realizing that the glory days (aka everything before 2007) will never return. This is partly due to the “new normal” of stagnant economic growth due to poor government policy, but also because the glory days were, in part, driven by unsustainable economic bubbles (dot-com followed by real estate) that never could have continued forever.
It is also due to a realization that there is much, much more competition today, and that the days of being able to make money because governments arbitrarily restricted supply are over.
Back in May, I wrote an article about how many industry executives had blamed “God” – quarter after quarter, year after year – for their problems. If only the “weather” was not bad; if only competition would go away; if only the economy would improve. The article was broadly disseminated and widely discussed – perhaps controversial, but certainly incontrovertible.