The State of the Economy and its Impact on the ARM Industry

November 14th, 2017

Another year is coming to an end, and it’s important to note the current trends in the U.S. economy and the accounts receivable management (ARM) industry as we prepare to enter 2018. We hear so many arguments about whether the economy is worsening or if it’s improving. Michael Thomas, senior associate at Kaulkin Ginsberg Company, was joined by Jared Lese, Kaulkin Ginsberg’s lead market research analyst, to briefly discuss the current economic climate and the various drivers of their opinions.

The first part of this two part informative podcast series explained how the economy is faring, and the specific metrics examined to support that assessment. Among others, the two professionals discussed real gross domestic product (RGDP), with Jared explaining how the various RGDP growth rates have changed over time, accompanying illustration below, and whether or not we should be optimistic about the most recent results.

Later in the podcast, Jared and Michael reviewed the retail season and the U.S. economy. But how does this affect the ARM industry? Jared went on to explain, “Real expenditures grew faster over the past three years, on average, than real mean incomes, suggesting that consumers are spending more than they should be able to.” Will debt accumulate more quickly, especially during this retail season?

During the second of this two-part podcast series, Jared revealed that perception matters. While it’s important to know what the tangible and clear measurements are (e.g., unemployment rate or wage increases), oftentimes, people’s actions reflect what they feel. Does worse economic conditions lead to pessimism or does pessimism lead to worse economic conditions?

To find out what Jared and Michael thought about the economy, and how the trends relate to the ARM industry, among other valuable insights, simply log in to your KG Prime account, or request your company code today!


Michael Thomas is a Senior Associate & Director of Research at Kaulkin Ginsberg Company. Michael joined the firm in 2014 and holds a Bachelor of Arts in Economics from the University of Maryland. He oversees strategic consulting and transaction advisory services, and manages the Department of Economics Research Fellows Program at the University of Maryland. Additionally, he has worked with numerous business owners and executives on the development of long-term growth and exit strategies, with a particular focus on the outsourced business services industry.

Jared Lese is a Market Research Analyst at Kaulkin Ginsberg Company, joining the firm in 2016. Jared earned a Bachelor of Arts degree in Economics, accompanied by a minor in Classical Mythology, from the University of Maryland, earning cum laude honors and being inducted into Phi Beta Kappa Honor Society. Jared’s main tasks include researching, analyzing, interpreting, and reporting upon various market and economic data, drafting insightful blogs, KG Prime articles, and custom research reports, and supporting the Department of Economics Research Fellows Program at the University of Maryland.

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