Adapting and Thriving in a Year of Economic Change

It’s been said that change is the only constant in life. But with all the uncertainty around a new presidential administration, it’s very possible 2025 could be marked by constant change as it relates to everything from tax policies to government spending to trade restrictions. And that uncertainty has a lot of businesses across many different industries unsure of how to navigate this new terrain.

While it’s too soon to tell how the year will actually play out, staying ahead of the curve is key when it comes to preparing for the opportunities – and potential challenges – that lie ahead. Understanding the evolving regulatory landscape and anticipating its impact can provide businesses with a competitive edge. Here are a few things to keep an eye on.

First, let’s talk about those previously mentioned tax policies. A new regime could push tax rates in either direction through rate cuts or hikes. Rising rates would create higher operating costs and less operating capital for many businesses, while cuts would create room to reinvest in things like fleet expansion, equipment acquisition, or even facility upgrades.

The good news is that many analysts anticipate new tax policies that promote economic growth in favor of both businesses and individuals. Our incoming president has proposed measures like increasing the standard deduction, lowering taxpayers’ tax liability while creating more disposable income to boost consumer spending.

Another important tax consideration is capital gains. If this administration pushes for higher capital gains tax rates, any sales of assets – whether its real estate or, say, old storage units – would become more expensive, and might affect your plans for sales or acquisitions in 2025.

The good news here is that it looks like the incoming administration is considering a proposal to actually lower the top long-term capital gains tax rate from 20% to 15%, which would allow investors to keep a larger cut of their profits on asset sales. Further, there are talks of indexing capital gains to inflation so that only true gains (excluding inflation) would be taxed, further reducing tax liabilities.

It's also possible the government could introduce measures to encourage businesses to invest in more energy-efficient equipment or workforce development in the form of new tax credits or incentives. Staying up to date on these changes could open up opportunities to lower your operational costs, add new talent to your team and boost profitability.

Speaking of workforce, new labor policies – specifically immigration reform – could substantially impact businesses in 2025, who may face challenges securing qualified workers for roles in freight transportation, warehousing, customer service, and the list goes on. If these policies do tighten, it could create a more competitive labor market … for better or worse.

Now, let’s talk about that other “T” word … tariffs. With global trade in flux, changes to trade policies could create both challenges and opportunities for businesses in portable storage. While changing tax policies seem like they could have big benefits for business, there are serious concerns – and uncertainty – surrounding tariffs as they relate to the shipping industry.

Tariffs and trade restrictions could impact the cost and availability of essential materials like steel, shipping containers, and other raw materials. A proposed 60% tariff on goods from China would obviously include Chinese steel, of which 95% of the world’s shipping containers are estimated to be made from.

Tariffs on a key material like this would creep over to manufacturing costs, which could lead to higher prices for new containers and increased expenses for shipping and logistics businesses relying on overseas suppliers. By increasing the cost of imported goods, the volume of goods coming in would also likely take a hit, potentially leading to lower demand for shipping containers.

On the flip side, this could also increase demand for portable storage leasing solutions, which can be a cost-effective solution for short-term needs. It could also encourage domestic materials sourcing, reducing dependency on international supply chains, or even encourage innovation and experimentation with alternative materials and container designs.

The takeaway: Businesses that adapt to these potential changes can still thrive in a tariff-influenced market. By keeping an eye on both regulatory and economic shifts, your business can not only navigate the changes ahead, but also grow stronger in the process. So, in spite of all the uncertainty, 2025 could shape up to be a year of new opportunity for those who are ready to adapt and innovate.