WILDWOOD – President and Chief Executive Officer (CEO) of Crest Savings Bank, Anthony DeSalle, gave a presentation to the Greater Wildwood Chamber of Commerce Jan. 12, regarding the financial forecast for 2022.
In addition to members of the chamber, a group of Wildwood High School seniors, who are interested in finance, also attended the event at the Wildwoods Convention Center.
DeSalle’s presentation began with a slew of questions, some of which regarded events from 2021 that were rounded up to reflect the year, and after a correct answer from the audience, prizes were awarded.
The last question dealt with the container ship that had been stuck in the Suez Canal, in March 2021, an example of a “supply chain disruption,” DeSalle said.
“All of us have experienced some kind of supply chain disruption in 2021, and probably 2020, as well,” he added.
DeSalle prefaced the presentation by noting he would talk about Covid from an economic perspective.
“In general, each subsequent variation of the virus has had a subsequently reduced impact on economic productivity,” DeSalle said. “From an economic perspective, it’s becoming incrementally less disruptive each time.”
He explained he feels “we are on a favorable economic trend,” despite hardships caused by the pandemic, partly because the nation has been able to recover by getting better at living with Covid.
“In general, things have recovered fairly well,” DeSalle said.
He brought up a few recessions that the nation has experienced, specifically the one in the first quarter of 2020, and discussed the causes and effects.
“The upward positive slope since then is both significant and stable,” he said.
DeSalle explained the federal deficit, noting significant changes in budgeting due to the pandemic, which had positive effects on the economy.
DeSalle also discussed the unemployment rate versus the inflation rate, which also aligns with dealing with the coronavirus. In April 2020, “the U.S. economy lost 20 million jobs,” he said.
The proportion of the eligible workforce’s participation dipped, causing an increase in product prices, since, at the same time, people were generally consuming more while staying at home.
“That increase in the consumption of goods began to push prices up,” DeSalle said, adding that towards the end of 2020, people started traveling again.
“We are going to experience inflation throughout 2022,” DeSalle said. “It’s not going to be excessive inflation, but it’s going to be persistent and there.”
Some reasons DeSalle provided was that the nation currently has low business inventories.
“That is something that’s fundamentally, instructionally difficult to fix,” DeSalle said, noting that although that is the case, people are still consuming at a rate that does not allow enough time to rebuild the inventories.
He said the nation is still dealing with supply chain disruptions, as well. There are backlogs at several ports, with container ships anchored outside just waiting to get in.
In addition, after the goods have reached the ports and are loaded onto trucks for delivery, another problem arises with the shortage of truck drivers.
“These elements of the supply chain are something that I think all of us kind of take for granted,” DeSalle said, adding that he thinks this issue will be one that is resolved in months rather than years.
“One way to get people back working is to pay more,” he said, as another source of inflation. “We have a labor shortage. That is a way to cure it.”
DeSalle also noted how there has been an increase in gasoline prices, but not to an extent that it will cause people not to travel.
Additionally, the cost of housing and shelter has also seen a cost increase due to people working from home, buying new ones, and lumber costs to name a few.
DeSalle also discussed the local economy, noting how this area has expanded its season, being a popular destination not only during the summer, but in spring and fall, as well.
In addition to people having the option to work from home, second homeowners have been transitioning from having one primary home to two primary homes, he said.
DeSalle also noted how the summer seasons are slightly easier to deal with Covid disruptions, as the weather allows for operations outdoors.
One question following DeSalle’s presentation dealt with a seemingly common issue people have been experiencing – job seekers not being able to find a job and business owners not being able to find help.
DeSalle explained how this could be an example of a mismatch between jobs and skills with people who can fill them.
Lastly, DeSalle advised that the best thing to do to protect the economy is to invest in one’s own product or business.
To contact Rebecca Fox, email rfox@cmcherald.com.
