ENT3003 Assignment 6A – Identifying Opportunities in Economic & Regulatory Trends

Identifying Opportunities in Economic & Regulatory Trends

Economic Trends:

1. Trend: The U.S. Federal Funds Rate is Rising

• Source: https://tradingeconomics.com/united-states/interest-rate
• Why Opportunity Exists: The rising interest rate offered by the Federal Reserve effects how consumers can get credit they need. With the federal funds rate rising, banks offer high interest rates which leads to more people saving money and less people borrowing money.
• Prototypical Customer: This opportunity allows for banks to pursue more people’s money. When people are saving their money in banks it allows more money to be loaned out to people or businesses, which should draw people to banks and banks to people.
• Difficulty to Exploit: This opportunity is relatively simple to exploit as an average person, if you’re the consumer that is saving you can exploit the trend to have a more stable investment in a bank while the bank’s role is relatively difficult as they need to get more people to save and find more businesses willing to take on higher loan rates. 
• Why I see this opportunity: I believe this opportunity exists because federal reserve rates have been so low for so long. I think that people will be significantly more willing to save their money in banks now than they would have been in the past.

2. Trend: Rebounding from Natural Disasters

• Source: https://commercial.jpmorganchase.com/pages/commercial-banking/executive-connect/six-key-economic-trends
• Why Opportunity Exists: Natural Disasters cause an absurd amount of damage to both buildings and the environment, they were especially disastrous in 2017-2018. Florida and Texas both faced hurricanes that left major cities in ruins but while this was unfortunate for the overall economy it will be very beneficial to the construction industry as buildings need repairs with some requiring complete overhauls.
• Prototypical Customer: This opportunity will primarily effect businesses in the construction industry including companies that work with electrical wiring, home building, and all in-home service areas such as plumbing, A/C, etc. 
• Difficulty to Exploit: This opportunity is relatively easy to exploit as most of these businesses already exist and simply need to take on the increased demand by completing more projects and hiring off the duties that will benefit other businesses.
• Why I see this opportunity: I have seen this opportunity through my own experiences as areas across Florida were ripped apart last year by Hurricane Irma. Many people are still without a proper home to this day, as they wait for an available or cost-conscious construction company that will inevitably take on this great opportunity.

Regulatory Changes:

3. Change: Increased promotion, funding, & simplicity for Career and Technical Education

• Source: https://www.govtrack.us/congress/bills/115/hr2353
• Why Opportunity Exists: This bill passed the house and senate and was enacted by the president a little over a month ago. The bill allows for CTE courses and teachers to receive more funding and should yield more innovation within CTE programs all with a limited federal role. 
• Prototypical Customer: This opportunity will mostly be available to schools with CTE programs, as well as schools that were considering adding such courses. 
• Difficulty to Exploit: This opportunity is relatively easy to exploit as nothing new is being added, rather most things involved are just being improved to benefit education.
• Why I see this opportunity: Having spent my 2018 internship looking into a lot of CTE courses and trade schools I’m very familiar with these programs. It seems that a lot of improvements will come from this new bill, with at the bare minimum resulting in simplified processes for schools and teachers to go with additional funding.

4. Change: Act providing CBP with support for better chemical screening devices

• Source: https://www.govtrack.us/congress/bills/115/hr2142
• Why Opportunity Exists: This Act will allow for CBP to spend large amounts of money on improving chemical screening devices that they hope will lead to reduced illegal trafficking of deadly drugs from Latin America to the U.S.
• Prototypical Customer: This opportunity while connected to CBP will mostly benefit businesses that work in the scientific field that will receive government funding to gather further research on dangerous chemicals. Additionally, the companies that create and maintain chemical screening devices will also greatly benefit from this Act.
• Difficulty to Exploit: This opportunity is relatively difficult to exploit as the businesses benefitting from the Act are extremely scientific and specialized in their field. However, those who are specialized in chemicals and the production of screening devices will almost surely exploit the higher demand for their products. 
• Why I see this opportunity: Having multiple relatives in the customs field, including a lot of experience with CBP I feel quite confident that this act will be used to help support CBP through the funding that is given to scientists and companies product chemical screening devices.