To spot possible business opportunities for 2005 let's pay attention to the general economy AND the particular sectors:

In residential and commercial buildings, a slowdown in overall consumption is imminent as more capital is diverted to paying back debt instead of investing in capital assets as rates go up.

Growth opportunities also exist in aerospace and defense. For example, the need for more fuel-efficient aircraft is gaining in urgency, indicating a trend toward increased standardization of aircraft components and a shift toward smaller jets. (Similarly, high gasoline prices will place more emphasis on achieving fuel efficiency in the automotive industry so pay attention to opportunities that could stem from this trend). In addition, current military efforts will entail the assembly, maintenance and upgrade of equipment. It also indicates potential new business in military facilities.

Another promising area is the oil and gas industry. Skyrocketing oil prices should stimulate drilling here in the U.S. as well as in Russia, South America and Mexico. As a result, opportunities could arise in drilling, piping and coupling as well as other industries that serve the oil and gas industry.

Additionally, it's a good idea to watch out for local and state government programs that are designed to draw in more federal projects in order to bolster job creation and consumer awareness. Also, be mindful of locations providing business tax incentives, says Harris.

Source: Where Do We Go From Here? By Doug Harris
Fabricating & Metalworking, December 1, 2004