SPRING 2017

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THE DISTRIBUTOR’S LINK
Jim Truesdell
James Truesdell is President of Brauer Supply Company, a distributor of specialty
fasteners, insulation, air filtration, and air conditioning with headquarters in St. Louis.
Mr. Truesdell is adjunct professor at Saint Louis University and Webster University.
An attorney and frequently published writer, he is the author of “Total Quality
Management: Reports From the Front Lines”.
DOES BUSINESS OPTIMISM
LEAD TO REAL RESULTS?
Do positive expectations of an improving business
climate translate to reality? If consumers and business
owners expect things to improve then do they loosen
their purse strings and start spending and hiring?
If perception and mood is a good predictor of
increased success then we can
take heart at the news reported
by the National Federation of
Independent Businesses when
they revealed the results of
a December survey showing
a marked increase in small
business optimism. Their survey
showed a 38 point jump in small
business owners expecting
better business conditions. This reflected a marked
turn around beginning with the November elections.
This was emphasized again by a survey of some 1400
manufacturers of HVACR products released at a January
Air Conditioning and Heating Expo in Las Vegas which
showed 86 per cent of respondents expected sales
to grow in the coming year. Clearly business owners
believe we are headed to an era of reduced government
regulation which will free up time and resources to focus
on the things that really keep a business afloat.
All of this is intriguing because, up until election
day, it was widely assumed by pundits that the markets
and businesses would probably be better off with
the anticipated calmness and certainty that a Hillary
Clinton presidency would supposedly bring. Following
CONTRIBUTOR ARTICLE
the surprising Trump win, however, the financial markets
have been on a steady upswing. The weeping and
gnashing of teeth in much of the media and among
protesting groups has had little dampening effect. This
small business survey now confirms that Main Street
likes what they see, or at least
they expect good things rather
than disaster.
Will the new President’s blunt
talk of trade protectionism, and
rush of activity in the early weeks
of his Administration prove
unsettling, or will the removal
of regulations “trump” all worry?
The entrepreneurial personality
that is characteristic of most business owners is one
that is willing to take risks in search of a payoff. The
mere fact of investing one’s capital in an enterprise
is evidence of that. But a willingness to continue
making investment is predicated on a constant series
of judgments made in anticipation of what the near
term future is likely to bring. If the guess is wrong that
business owner may find himself or herself sitting on
unsold inventory, paying wages to employees without
sufficient work to perform and carrying overhead for
excess floor space or equipment. Banks and other credit
providers might start to bring pressure. On the other
hand, if too much caution or risk averseness prevails
then business market share and customers may be
permanently lost to competitors who took the gamble.
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