What we'll be watching in 2023

One thing I’m watching for in 2023 is how the tightening labor market could potentially hinder business growth. We started seeing this in 2022 and all indicators point to a tight labor market again in 2023. Business owners will need to find ways to attract and retain employees to maintain staffing at appropriate levels.

--Brad Benesh, Senior Vice President, Business Banking

I’m going to be encouraging business owners to be focused on company growth in general in 2023 and whether or not organic growth or business acquisition will be the most prudent way to move forward. With rates, inflation, and other economic uncertainties, owners will need to determine how best to position their businesses to achieve revenue growth goals.

--Dave Ibach, Vice President, Business Banking

“Inflation is always and everywhere a monetary problem,” said Milton Friedman.  The Federal Reserve’s pandemic-driven unprecedented expansion of the money supply, coupled with supply chain issues and labor shortages uniquely combined to drive inflation to a 40-year high of 7.1% through November, 2022.  I’ll be watching the Fed’s discount rate decisions to see their impacts on both inflation and the economy.

Specifically, I’ll continue to closely look at manufacturing clients’ order backlogs—a tell-tale early-warning sign of economic expansion or recession—and their gross margins—can prices be passed along to their clients amidst inflation.

--Todd Nelson, Senior Vice President, Business Banking