Mesinger Pulse: Is it or is it not …
Jay Mesinger, CEO and founder, Mesinger Jet Sales.
A panacea? It is probably too early to tell if this new administration will bring magnificent sustainable growth to our industry or just a flash of new enthusiasm that will track back to a more status quo, writes Jay Mesinger, CEO and founder, Mesinger Jet Sales.
So many changes are being proposed for our economy and key agencies. DOGE (Department of Government Efficiency), for instance, may bring smart efficiencies to the agencies it touches, or it might bring chaos and disruption. It would probably be safe to say that even if executed properly, the significant changes being discussed would bring a disruptive period for some initial period. Investors and aircraft buyers are never very keen on uncertainty.
How do we, as an industry heavily reliant on economic forces, weather this initial period? I think we stick to the fundamentals those of us who have been doing this for years and years have come to know and instil in our day-to-day dealings. We should expect the need to hold some extra hands and continue to impart to our clients the positive and powerful effect that the use of business aircraft brings to their individual lives and businesses.
We should also help prepare our clients and prospects for the look of our market if it slows down a bit. That includes added inventory, longer days on the market and, the most important piece, price. Correct pricing of our inventory, and what to offer to sellers from the buyers we are representing, is the most critical part of keeping a market moving even if outside factors slow it down a bit.
I do not see a drastic change in the value of aircraft, or the demand to continue to own and operate these important tools for the very powerful efficiency they provide. I see what could be a sluggish second quarter. The first quarter will probably continue riding the stock market highs while also enjoying the euphoria set in motion by the promise of a strong market trajectory.
The second quarter may be when the market begins to react to uncertainty from the initial mandated changes put in place after the inauguration. Our industry looks to us as the aircraft sales professionals to keep sanity in the market, not let the industry overreact to change, and watch carefully for nuggets of certainty and calm.
Underlying market conditions due to change do not have to be catastrophic and if addressed wide-eyed can be communicated in a very smart way, not allowing market swings that cannot be kept in check. The bottom line is that administration change, even with the promise of a disruptive force, does not have to upend solid markets. As we go into the holidays and think about the prospects for next year, go forward positively and with confidence. So much of what the perspective is of the market comes from us, and the smart intel we impart.
Milestones to watch collectively will be how our fourth quarter ends and what happens on day one of the new administration, which will be January 20th. Then what things look like on May 1st, which is the end of the first 100 days. So much to watch as we decide: Is it or is it not?
