Issue link: https://read.dmtmag.com/i/671350
PERSONAL FINANCE 16 // OWNER OPERATOR // MAY 2016 oversupply and low demand. If you're still hanging on in the oil and gas sector or hauling other commodities, keep a close eye on what market forecasts are saying about your niche. • Hauling flatbed to serve construction markets? For residential, it's a mixed bag. Young adults are shying away from marriage and childbearing, and consequently home buying. Plus, potential homebuyers' price- to-income ratios exceed historical averages in many big cities. On the flip side, young adults have to live somewhere: "The amount of rental housing going up is mind-boggling," Larkin said. • The ratio of dependents to working individuals is growing, putting a strain on welfare programs, including Social Security. "The moral of the story is to take retirement planning into your own hands," he said. If you're among the many owner-operators who've done little to no retirement savings, do what you can to remedy that. • Consumer confidence has been static or eroding since last year, and consumer spending is down. If you're part of the retail supply chain, keep on eye on trends in the freight you haul or the chains you haul for. • While brick-and-mortar retail is stagnant, e-commerce is growing 15 percent a year. Alignment with the supply chain of an online seller, such as Amazon, or a traditional retailer who's aggressively moving into online sales, such as Walmart, could be a smart move. • Many of those online shoppers are those living in urban areas, some of whom are increasingly moving away from car ownership. "Fifty percent of the U.S. population lives in 145 counties," Larkin said. "Folks will work and play all in the same neighborhood." Long-term, this could mean a weakening in the automotive market and its supply chain. OO