As we look at the broader economy, the numbers paint a mixed picture. Consumer prices (CPI) remain elevated, and with consumer debt levels climbing, everyday financial pressures are intensifying. Mortgage rates continue to hover near highs we haven’t seen in years, leaving homeowners with a smaller safety net, and ongoing political uncertainty isn’t helping consumer confidence. While some insist that eating out is so embedded in American life that it’s insulated from economic shifts, I would respectfully disagree. I’ve been hearing from colleagues across the industry, some of whom have faced recent layoffs, and the sentiment is clear: Consumers are reaching their limit. Grocery prices and restaurant tabs have both skyrocketed. This cumulative effect of rising costs is making dining out less feasible, even for those with disposable income.
After pandemic stimulus funds dried up, some expected prices would naturally start to fall. But here we are, and supplier costs are holding steady or even climbing. Why? I wish I had a perfect answer. The supply chain seems more stable, wages have increased (if you believe the headlines), and the job market looks healthy. But visit any store, and the numbers tell a different story. Last week at Costco, a stroll down the aisles was eye-opening: everything I picked up, from cereal to coffee, was twice what I remember paying not long ago. When did basics like a three-pound pack of coffee hit $20?
And it’s not just me noticing. Surveys show consumers are struggling to keep up. A Pew Research report even highlighted that a quarter of Americans can’t tell the difference between opinion and factual reporting. This all contributes to an information overload where economic reality and narrative clash daily, leaving consumers even more uncertain.
Why Marketing Matters More in Tough Times
Economic turbulence may tempt companies to trim budgets, especially in marketing. Yet this is precisely the wrong time to sideline marketing and insights teams. Marketing is essential for resonating with consumers who are increasingly cautious about spending. It’s about connecting with them on what matters and differentiating from competitors who are also vying for attention in a tighter market. Marketing is not just about promotion—it’s about staying top-of-mind when spending choices are hard.
Challenges for Smaller Firms Serving the Middle Market
In our firm, we’re seeing a softening in results from the middle-market manufacturers we serve. As a small, ten-person team, we can’t compete with the scale of larger research agencies, but we offer something just as crucial: expertise and personalized service that deliver actionable insights without the commoditization that’s crept into larger firms. The big names in research are cutting their value by commoditizing services, leaving clients to sort data themselves, often without the strategic insight they need. This gap has left Gen Z and other data-savvy professionals doing great work with numbers but struggling to translate it into business-relevant insights.
Conference Overload and the Shrinking Value of Trade Shows
Manufacturers are also over-relying on trade shows and conferences to generate business leads, which might seem like a sound strategy but often ends up eating into budgets without delivering sustainable growth. Many conferences today prioritize influencer-style speakers over true subject matter experts, making them more about social media impressions than tangible insights. Meanwhile, these events are costing more and stretching budgets thin.
Looking Ahead
As we approach 2025, the writing is on the wall: Next year is shaping up to be challenging for consumers and businesses alike. With insurance premiums, grocery bills, and borrowing costs pushing households to their limit, companies need to consider new strategies to capture consumer attention and stay relevant. For those looking for real, actionable insights—not just more data—we’re here to help you cut through the noise. Skip the conferences and come talk with an expert who can help you navigate these turbulent times with a clear, practical plan. And hey, support the small business or your choices will be limited.
To learn more about FSIP’s Management Consulting Practice, click here. Also, learn about our Recession Planning and Sales Acceleration programs.
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