A Quick Look Back: Previous Emerging Trends

 it helps to consider past predictions and the factors that influenced their alignment or divergence with actual events.  

In looking at and prioritizing today's trends, it helps to consider past predictions and the factors that influenced their alignment or divergence with actual events.  The three emerging trends highlighted in the 2007 Facing the Forces of Change report were:

1. Acquisition activity
2. The changing US workforce
3. A slowdown in commodity prices

Acquisition Activity:

While credit markets loosened somewhat, they will likely remain tight as banks, businesses, consumers, and governments each look to reduce debt levels and the various credit rating agencies seek a modicum of redemption via more rigorous analysis and conservative ratings of borrowers and transactions.  That said, mergers and acquisitions will continue--the strategic imperatives driving consolidation are simply too strong.

ACTION POINT: Going forward distributors should carefully consider what role they intend to play in industry consolidation, ensure the alignment of their business and investment strategies--including capital budgets and information technology budgets, and their human capital strategies, and continuously explore merger, acquisition, or other joint venture partnership/options.