January 29, 2025
Will Trump's policies create business opportunities?
President Trump's recent executive orders have introduced significant policy shifts, each presenting unique business opportunities across various sectors. Below are a few examples.
1. Rescission of Diversity, Equity, and Inclusion (DEI) Programs
President Trump has mandated the dismantling of DEI initiatives within federal agencies. As federal DEI programs are curtailed, private companies may find a niche filling the gap. For sure some private companies will seek external consultants to guide them in how they should react, if at all, to the end of federal DEI programs. Should companies with ties to the federal government also eliminate DEI programs to avoid being blacklisted by the Trump administration? Should they stay the course on DEI knowing that for every action there is a reaction and that some people will defend DEI even more now? Should companies find a politically correct / socially responsible / corporate profitable stance on DEI?
In addition to consulting firms, law firms specializing in employment law may find increased demand for guidance on navigating the complexities arising from the rollback of DEI policies, particularly concerning workplace discrimination and diversity initiatives
2. Reinstatement of In-Person Work for Federal Employees
Federal employees are required to return to in-person work and there is a buyout option available through February 6, 2025. This policy change may lead to a resurgence in demand for office spaces to accommodate returning federal workers. Real estate companies specializing in commercial properties and food vendors may benefit from this change. Head hunting firms may experience a short term boom finding jobs for displaced federal workers. Also, federal workers with specialized skills may open their own small business and even become federal contractors or subcontractors. After all, someone will need to do the work left behind or left undone. Chances are that whatever agency or program is abandoned by the federal government will still be required at the state or local government level or under some private programs.
3. Deportations and Detentions
The Trump administration will deport millions of illegal aliens and may even incarcerate or detain some in Guantanamo Bay. Chances are that the government will need help from contractors that can help with the logistics of deportations and the preparation or sustainment of detention facilities. In addition, law firms focusing on immigration law could see increased demand for representation and advisory services related to the new immigration policies.
4. Energy Programs
President Trump's recent energy policies signal a significant shift toward traditional energy sources, particularly fossil fuels, while scaling back support for certain renewable initiatives. These changes present various business and commercial opportunities across multiple sectors:
- a. Expansion of Fossil Fuel Production. The National Energy Emergency Declaration aims to expedite fossil fuel development by suspending specific environmental regulations and accelerating project approvals. The administration has lifted previous bans on new offshore oil and gas development along most U.S. coastlines and in 2.8 million acres of the Arctic Ocean. Companies in the oil and gas sector can capitalize on newly accessible offshore and Arctic areas, leading to increased exploration and drilling activities. There's potential for constructing pipelines, refineries, and storage facilities to support the anticipated growth in fossil fuel extraction and distribution.
- b. Geothermal Energy Development. Despite a general focus on fossil fuels, the administration has shown favorable attention toward geothermal energy, recognizing its steady electricity generation and technological alignment with the oil and gas industries. Companies can explore advancements in geothermal technology, such as enhanced geothermal systems, to harness subterranean heat for power generation. Geothermal projects can benefit from partnerships with oil and gas companies, leveraging their drilling expertise and infrastructure.
- c. Environmental Deregulation. The Trump administration has directed the National Highway Traffic Safety Administration to align fuel economy standards with a pro-oil agenda, potentially reducing the stringency of current regulations. Automakers may find opportunities to produce a broader range of vehicles without stringent fuel efficiency constraints, potentially reducing manufacturing costs. Firms specializing in environmental compliance can offer guidance to businesses navigating the evolving regulatory landscape.
- d. Renewable Energy. The administration has issued directives to halt various federal financial aid programs targeting clean energy development, including those established under the Inflation Reduction Act. The reduction in federal support may open avenues for private investors to fund renewable energy projects, potentially leading to innovative financing models. Businesses may seek to invest in energy efficiency technologies to mitigate potential increases in energy costs due to policy shifts.
5. International Trade and Tariffs
The Trump administration's trade policies include imposing tariffs on imports, which could affect various industries, including automotive and energy sectors. Companies may explore opportunities to enhance domestic production capabilities to mitigate the impact of tariffs on imported goods. Businesses can develop strategies to diversify supply chains and reduce reliance on imports subject to tariffs.
For every action, there is a reaction. Every executive order issued by President Trump will create business opportunities for companies that can help: (i) those implementing the new policy; and (ii) those affected by the new policy.
If you are a Creatix reader, you are familiar with what we call the "Problem Paradox": the solution to a problem creates more problems, which are oftentime more complex and complicated than the original problem solved.
Use your intelligence to know that Trump's policies, whether labeled "good", "bad", or "neutral", will solve some problems and create many other problems. Each policy change will create opportunities for companies that can help the administration implement the policy and for companies that can help those affected by the policies.
Change is the only constant and change constantly brings new opportunities for anyone paying attention. Stay tuned. Don't miss out.
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