Login or signup
36
ACCOUNTING

Last Year's Predictions in Review
 

A look back at the trends we expected to see in 2006.
Advertisement

Fuel Prices

What we said: They would remain high but not top post-Katrina levels.

What happened: Gas prices stayed below post-Katrina levels, while oil prices jumped above those levels from mid-April through the end of the summer.

Blogging

What we said: All sorts of companies would sponsor blogs.

What happened: Company blogs are indeed just about ubiquitous.

Logistics

What we said: Ports wouldn't be as clogged as they were in 2005. In trucking, capacity would improve, but the driver shortage and fuel prices would push up costs.

What happened: Ports were less congested than last year. The truck driver shortage continues, but prices leveled off thanks to lower demand.

Real Estate

What we said: Residential prices would drop but not precipitously; commercial rates would stay near all-time highs.

What happened: Residential sales did weaken during the year, while commercial prices remained high. In the third quarter, office rents rose 2.3 percent, the fastest gain in more than five years, according to Reis, a real estate information firm.

Outsourcing

What we said: Companies would go beyond offshoring basic functions to looking for better-trained workers overseas.

What happened: Offshore operations are becoming more sophisticated as 75 percent of companies that go overseas decide where to locate offshore facilities based on "access to qualified personnel," a number that's up 70 percent over the past two years, according to a study from Duke's Fuqua School of Business.

Interest Rates

What we said: The target federal funds rate would hit 4.75 percent by spring and would probably climb even higher.

What happened: The rate went to 4.75 percent in March, 5 percent in May, and 5.25 percent in June, where it has remained.

Last updated: Jan 1, 2007




Register on Inc.com today to get full access to:
All articles  |  Magazine archives | Comment and share features
EMAIL
PASSWORD
EMAIL
FIRST NAME
LAST NAME
EMAIL
PASSWORD

Or sign up using: