Only fortune tellers and delusional fools claim absolute knowledge of the future. The rest of us must rely on experts who compile and analyze the reams of information available in this age of big data- opines Jack Olcott.
Possibly the world’s most recognized advocate, if not expert on the value of Business Aviation,... Read More
Future Watch: Using Business Aviation to secure a bright horizon. Only fortune tellers and delusional fools claim absolute knowledge of the future. The rest of us must rely on experts who compile and analyze the reams of information available in this age of big data- opines Jack Olcott.
Considering the many conferences and seminars that are offered to businessmen and women- there is no question that we all crave knowing more about the markets we serve—particularly how the future is likely to impact us. An industry of organizers defines agendas- attracts speakers and establishes venues for the many attendees seeking knowledge and an opportunity to network. If money and time were unlimited- an individual could spend an entire career attending gatherings of like-minded professionals in search of the magic dataset—or perfect job—that would provide an exciting and secure tomorrow.
I recently attended the JETNET iQ Annual Global Aviation Summit- one of my favorite seminars. The topic was Business Aviation- the information fresh and relevant- and the speakers well versed in their fields. In particular- JETNET reported on its person-to-person interviews with owners and operators of business aircraft- conducted quarterly to glean trends and identify community expectations.
As in past years- experts external to Business Aviation also offered their findings on the economy as well as on the characteristics of the ultra-wealthy. With his characteristic good humor and compelling rhetoric- ITR Economics CEO Brian Beaulieu discussed the nascent recovery of the global economy. Saying that leading economic indicators are pointing up- liquidity is not an issue- inflation (for the time being) is low and manageable- employment is increasing- and economic growth is likely to continue throughout the rest of this year- his message was well received. His firm’s research indicated that the US economy would be growing at a faster rate in 2015 through 2017- but he cautioned that the US might experience a flat
David Friedman- co-founder and president of Wealth-X- presented fascinating data about the growth of the Ultra-High-Net-Worth (UHNW) community. The number of billionaires- he noted- was growing throughout the globe- and considerable wealth was flowing to the upper-end of the economic spectrum. Punctuating his message that UHNW individuals were doing quite well- he showed an image of a receipt found at an ATM located in posh East Hampton- an exclusive vacation spot on the eastern tip of Long Island in New York state. It showed that the owner of the checking account had withdrawn $400- paid an ATM fee of $2.50 and had a remaining balance of over $99 million.
WHICH COMES FIRST? In the often-quoted but apocryphal words of master robber Willy Sutton that he targeted banks “…because that’s where the money is”- marketers at the JETNET iQ seminar were fascinated to learn about the capacity of UHNW individuals to purchase business aircraft. More relevant- however- were data focusing on the global trends that bode well for business development and the need for Business Aviation as an effective means for reaching expanding markets. Several speakers referred to the significant opportunities for growth in markets and profits outside the USA.
Mega trends favor the demand for Business Aviation- particularly among larger aircraft with sufficient range to reach emerging markets and ample cabin technology to provide a productive working environment en-route. The global quest for natural resources will continue to drive the need for access into corners of the globe where public transportation is not adequate to serve the rapid pace of business development.
In China- for example- public access into the nation’s vast and underdeveloped interior is sparse; where it does exist- Airline schedules often are limited to one flight per week- which is not sufficient to meet the needs of companies seeking to move swiftly and efficiently into new business ventures that exist there. Global opportunities require a labor force with special skills that are often unavailable in the regions where companies seek to expand. New markets for ordinary goods are developing in areas long thought too remote to be profitable.
To capitalize on world trends- entrepreneurs as well as corporations must have efficient connectivity between home base and remote sites. Speakers emphasized the need for face-to-face contact in establishing a trustworthy relationship with global partners.
Research presented at the JETNET iQ seminar indicated that opportunities also are expanding within the USA- Canada and Mexico. Manufacturing is returning to the US as production increasingly is characterized by the use of high-tech robots and automation. North America is well on its way toward energy independence- opening a special window of opportunity as exploration and extraction expands.
The message was clear: rather than being the result of expanding wealth or a symbol of success- Business Aviation is an effective tool for economic development. The wise entrepreneur and business leader uses business aircraft as a means for achieving success.
Do you have any questions or opinions on the above topic? Get them answered/published in World Aircraft Sales Magazine. Email feedback to: Jack@avbuyer.com