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“Challenges that face the banking industry, inclusive
of our organization, continue to be the shrinking margin due to
the competitive nature in the commercial lending arena, plus the
unprecedented
low interest rates. It is also very difficult to gather deposits
due to lack of attractive rates and the availability of alternative
investments
that currently exist.” “The energy industry’s emphasis today is on going back
to basics—investing
in bread-and-butter energy distribution assets and building financial
strength. While more than 85 percent of all customers surveyed
express strong satisfaction with our service, my utility company
and the
entire industry must respond to customer demand for even higher
levels of service quality—near-flawless energy delivery—in
the face of constrained resources. Our focus must continue to be
on diversifying
our fuel sources, employing technology to keep our operations clean
and efficient, and relentlessly cutting costs where we can.” “The ability to consistently grow earning assets will remain
a challenge to banks in areas that do not provide a steady supply
of good loans.
Sensitivity to interest rate risk can be an added challenge to
these banks when funds are placed into extended investment portfolio
maturities
to generate more profitable margins.” “I am in the philanthropic world. … Our challenge in
2004 and the future is to keep to our missions and assure our communities
that the investments we make through grants to improve the quality
of life
are effective, and that we are accountable in how we use these
funds.” “Our greatest challenge will be getting accurate market information
from China, which has become the major customer for our product.
Our industry is having to shift from a U.S. market to an export market,
primarily China.” “Small and/or independent banks face the same old challenges—primarily,
training new personnel and retaining experienced personnel in this era
of advanced technology and specialization.” “The confidence of builders in Louisville metro is high. A
strong housing market and stable interest rates will result in healthy
choice and pricing
options for
first-time home buyers. However, in the affordable housing arena, the
challenge of delivering attractive mortgage products, with fair and
affordable rates
and fees, will be great. First-time home buyers, as well as those homeowners
who
have earned equity, will continue to be offered subprime mortgage packages
that may not be in their long-term interest.” “I think that the greatest challenge to the banking industry
will come from nonbank financial institutions. Community banks
in particular will continue
to face
strong competition from credit unions. Community banks will also find
it difficult to keep up with new technology trends and will have
trouble in continuing
to
find new products to increase noninterest income.” “The construction industry will be impacted by the budget
deficits faced by state, local and federal legislative bodies. Highways,
bridges, water and
sewage treatment
facilities and government offices funded by federal, state and local
tax dollars make up a large percentage of dollars spent on construction.
Construction
projects are normally the first items to be cut during budget crunches.
The impact will be felt in the next few years.” “Over the course of the next few years, the overall automobile
market in the United States should increase. With the number of
new drivers that will come of driving
age from the ‘Y Generation’ and longer life spans,
some are predicting that annual sales could reach 20 million units
within the next five years.
The effects of this should have an impact over the short run looking
ahead in 2004.
However, the industry as a whole is suffering from the loss of
pricing power and the high cost of incentives, which will remain
the biggest obstacles
facing the automobile market.” “The most immediate impact to my industry will be the impact
of Check 21. I believe new alliances will be made in the banking
industry, and small banks
will need to unite and be nimble in the market in order to compete. I further
believe that five years from now, the banking landscape will look nothing
like it does today.” “Driven by changes in consumer preference and innovations
in food production and processing technology, the structure of agriculture
is evolving from one
of small independent farmers producing for open markets into a vertically
coordinated agribusiness system. The transformation will significantly
impact food manufacturers,
consumers and farmers. Consumers will benefit from a wider selection
of food products and possibly lower prices. Farmers may gain or lose
depending on their
size, location and skill in negotiating with integrated food companies.” “Both consolidation and expansion in the banking industry
create activity in the commercial real estate sector. The merger
and acquisition of larger old-line
banks has opened the door for the formation of new community banks.
The former often puts space/property on the market, and the latter
often takes it. This
trend should continue.” |
