Mesinger Pulse: The first 100 days
Jay Mesinger considers the first 100 days of the new US administration. (Photocredit: StockCake).
May 1st, 2025 is the date by which the new administration will have completed its first 100 days, writes Jay Mesinger, CEO and founder, Mesinger Jet Sales. By then, many of the promised immediate agenda items will have been initiated, and the results will already be apparent. What areas of the agenda are most likely to affect our industry?
What can we, as an industry, start to look at in order to plan for 2025? I just had the privilege to speak on a panel at CJI Miami 2024 where the other great participants all focused on a promising remainder of 2024 and what could be an exceptional 2025.
I believe that most of our industry’s eyes will be focused on the Tax Cuts and Jobs Act (TCJA). With many provisions initially set to sunset in 2025, we are likely to see those renewed including restoration of the 100% accelerated or ‘bonus’ depreciation on the purchase of business assets, including aircraft. Lower tax rates are also going to be a potential stimulus for our industry. So, we have a lot to look forward to.
Not discussing headwinds would be a glaring omission. As an industry we are impacted by so many outside influences. Leaving aside supply chain and over-capacity maintenance facilities, we must always look outside of our industry. Geopolitical events could be complicated by the new administration’s initiatives to solve current issues. On the one hand, these new influences on old skirmishes could create bigger hazards and push economic challenges higher. On the other hand, new resolution opportunities could tamper down these conflicts.
As the title of this article mentions, between January 20th and May 1st, we as an industry should be made aware of what lies ahead for us. That’s why we are focused on tailwinds, headwinds and even possible crosswinds. Crosswinds can come at us from either side and cause us to crab into the alignment of our day-to-day. During our panel, the topic of non-economic subjects was also discussed.
All of us on our panel agreed that every transaction seems to take longer and have more complicated factors than ever before. There seems to be at least 10 different crosswinds and headwinds that come up. And the reality is that they seem to be different in every transaction, so there is no way to plan for the challenges. One of the panellists likened this phenomenon to putting 100 pieces of a puzzle into a bag with a different non-related problem written on each piece, and as you start the transaction, shake the bag up, pour out 10 pieces and there you have the problems. It’s crazy to think about this in those terms but that is today’s reality of transactions.
There is more transaction fatigue than ever before. As a group, we felt that preparing our clients for these delays and bumps was critical, however feeling as if we had answers and could solve them all in advance would not be a reality.
So, give the next 100 days post January 20th their due time to matriculate and prepare for the best. And for the last six weeks of 2024, work hard to realise what promises to be a transaction boom for year end.
