Confidence is a commodity that is in rather short supply these days. While the market for business aircraft is slow for a number of different reasons, the lack of confidence being expressed by buyers is a major contributing factor as to why it won’t jumpstart itself. Without confidence buyers are likely to do a whole lot of nothing when it comes to investing in anything. Confidence is an essential element of every business deal and every item in which one choses to invest in. No relationship is forged without it.
The customer base for business jets requires confidence on many levels. Today, first and foremost it must exist in our economic future. While I often speak in global terms, for the purpose of this blog my focus is primarily on the U.S. market for business aircraft. Given that the U.S. market represents the lion’s share of aircraft in operation, and that trade hands on an annual basis, I think it is also sufficiently illustrative of what is also going on in the global market for airplanes. Without the feeling that an economic recovery is on the horizon one will continue to see a predominately sluggish marketplace. A sense of security is essential to healthy growth and one’s ability to move forward. That sense of security is being challenged again by the poor jobs report last month in the United States and uncertainty as to the ability of the European Union to get its financial house in order.
It’s a tough year to try to restore confidence as election years typically do not encourage much activity. A wait and see attitude is generally adopted and it appears this year even more so than in recent history. Too much uncertainty exists and yes, a lack of confidence in our future, for any significant change to come about. I know I am sounding like a broken record here but it is perhaps the single most important element missing for a recovery to truly take hold.
Let’s consider a close sister to confidence, Trust. Confidence can be shattered and yet, restored with patience, effort and constant positive reinforcement. Persistent slow growth of the economy will provide hope, which in turn will aid in improving the confidence level of the buying public. Trust though, once lost is generally never regained. Think about it. How do you feel about someone who has lied or otherwise betrayed you? Are you ever going to be able to believe in him or her again? Are we ready to invest in our businesses because we trust that the economy is moving forward?
Trust is a fragile commodity that is hard to earn to begin with and so easily lost. Confidence as mentioned above can be restored for we can base decisions on solid empirical data and make a move with a certain surety. Market confidence can be influenced by a collective action and a stream of indicators that all point in the same positive direction. We in the aircraft trade are trying to generate positive press that suggests improved market confidence.
Security. Trust. Confidence. It has long been a hallmark of the service my company delivers to aircraft buyers and sellers and the key components to a successful market recovery. In the meantime, for those who are prepared to take a leap of faith tremendous opportunities abound in the aircraft resale marketplace.