"The industry may be facing an inflationary environment within the next 3-5 years and members need to understand and be prepared to operate their businesses during these conditions." – MHEDA 2015 Critical Impact Factor Number 12 The past four years have been a renaissance for MHEDA members with many having experienced record sales and many more expecting to exceed those records in the coming years. It’s a far cry from where the industry was not too long ago, as the entire country was in the throes of the Great Recession. One of the things that has aided these record profits is that we are experiencing the lowest sustained level of inflation in more than 15 years. "My gut tells me that with economic forecasts that indicate a healthy business environment, there will be some inflationary pressures within the next 3-5 years," says Liftech Equipment CFO and MHEDA Board Member Mike Vaughan. "I believe it will be later than sooner. Predicting inflation is a complex exercise but most financial professionals believe that interest rates cannot continue at these historically low levels. An increase in interest rates seems to be policy that is aimed at controlling the increase in inflation." On August 12, New York Federal Reserve Bank of New York President William C. Dudley delivered a speech in Rochester, NY. In that speech, according to Bloomberg Business, he said, "Hopefully we’re going to make progress in terms of our goals" for maximum sustainable employment and inflation of around 2 percent. "And so hopefully, in the near future, we’ll be able to actually begin to raise interest rates. When that is, precisely, depends on the data." Any hike in interest rates would be the first in more than nine years, since December 2008. As of Saturday, August 15, Bloomberg pegged the […]