Thursday, March 05, 2015
There is something about the human psyche that disdains moderation. When a good deal arises, people go all-in and forget that it will end someday. Consider the New York hotel market. It is in the middle of a bust with thousands of rooms under construction. Apparently developers decided that one can't go wrong by building new hotels in Manhattan. That might be true in the long run, but today, occupancy is down and the market is weak. The hotel boom and bust is a reminder to communications practitioners to moderate their language. One never knows when opportunity has passed and one will look like a fool to continue touting yesterday's fad. The energy market is in a similar situation. The oil boom brought thousands of wells on line and stimulated the growth of reserves. Now, tanks are full and the price has plummeted. Tens of thousands face layoffs in the oil fields and upstream. Apparently, no one considered the effects of abundant supply. Good times come to an end. Only a few niche players can take advantage of opportunity for decades. Chances are your company is not one of them.