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Are You Ready for Exponential Change?
Change. Do you like change, or do you not? I’m not talking about pocket change; I’m talking about things becoming different than they are today. I’m talking about the shift of your “normal” to a new kind of “normal.” Our attitude toward change depends. Sometimes it depends on what season of life we are in. The older we get, the less likely we like change. I had an out-of-town client tell me last week that the people they’d always worked with at their local bank were no longer there and they didn’t like it. She said to me “we don’t like change.” But sometimes change is good. If you are bored or if circumstances are just downright bad, change is welcome, right? We want something different in both of those instances. But regardless of our attitude toward change, change is inevitable. Here in the 2000’s, something I believe we are experiencing that previous generations have not is a hyper-accelerated pace of change. Technology and its continued advances mean that life is changing at a more rapid pace than it ever has in all of human history. For that reason, I believe that those who are most successful in business and in life in general will be those who can adapt to change. Being nimble is going to be a high premium trait as we approach the second quarter of the 21st century, and that’s what today’s episode is going to be about.
The first area of change I believe we are going to see is in the area of energy. We’re not using less of it, that’s for sure, so there are a host of ideas on what to use to fuel our insatiable demand for energy. Some will advocate for oil, others for natural gas, others for wind, and still others for solar. But a change I think we’re going to see over the next 25 years is a renewed interest in nuclear energy. One example of this that I think is fascinating is the reopening of a de-commissioned nuclear plant in Michigan that was originally built in the 1970’s. According to the Wall Street Journal, the state of Michigan and Federal government are spending almost $2 billion to reopen the Palisades nuclear plant near Lake Michigan. If they are successful, it will be the first decommissioned plant given a new lease on life in the country. And this could provide a template for other projects in the future. The idea is that restarting an old plant is much cheaper and faster than building a new one from scratch. The reason I think nuclear will be the most significant change in the energy landscape in the next few decades is that people on both sides of the aisle seem to support it. It meets many of the green requirements for Democrats, and it meets many of the efficiency energy goals of Republicans. Our source of energy is a foundational need for coming generations, and I think it could enable an even faster rate of change for everything it powers in the future.
One of the things that nuclear energy will power is electric vehicles. Although these vehicles have not yet been adopted as quickly as initially thought, and although some plants (including Ford locally) have reduced their production goals of electric vehicles, I think you will still see more and more of them on the road. One, in particular, is Tesla’s Cyber Truck. Have you seen Cybertruck in person? You’ll know if you have. Covered in sleek stainless steel, it looks more like something from Back to the Future than something that belongs on the roads today. Tesla claims you can take a hammer or a baseball bat to the side and it won’t even dent it. It boasts 11,000 pounds of towing capacity and a 4×8 bed that doesn’t need a bed liner. You can supposedly get 340 miles on a single charge. It will run you between $80,000 and $100,000. It’s unlike anything on the road. It’s called a truck but looks more like a car to me. It’s an example of a blurring of the lines I think we will see in years ahead. New electric vehicles will eventually be able to extend their range and shorten their charging cycles. And I believe that eventually, cars will indeed drive themselves. I continue to say that my kids won’t have to take away my car keys when I get old. I think I will eventually have a safe, self-driving car to take me to my doctor’s appointment. There are lots of kinks to be worked out, and more trial and error to come. But the way we drive is changing. Not quickly yet, but I think it will get quicker.
The second area of change I want to talk about is entertainment. According to Nielsen’s survey called “The Gauge”, streaming TV broadcast TV in the month of July, and it seems to be gaining steam with every month. And younger people in particular are tuning in to You Tube and watching short-form videos in droves. Just look are your own entertainment consumption. Do you still have cable? Are you getting most of the shows you watch from Netflix, You Tube TV, Hulu, or Prime Video? Many of you probably watch reels on Instagram or Facebook more than traditional broadcast TV shows. These changes in how we access entertainment are significant, and I think there are major implications for how businesses will advertise in the future. If more eyeballs are watching their mobile devices, the businesses that can catch these eyeballs in a non-obtrusive way will have a better chance of remaining top of mind for their existing and new clients. There’s a ton of creativity that can be leveraged in this space for those businesses willing to experiment.
The last area of change I’ll mention is that of payments. The way we pay for things continues to change. Have you ever used Apple Pay? To be clear, Apple Pay still uses credit and debit cards as their payment method, but it stores those methods and interacts with merchants in a different way than using your credit card. Let me explain. When you load your debit card into Apple Pay, they don’t share your number with merchants when you pay. It actually shares a different number, and that number can only complete the transaction if it is tied to your unique device. In that instance, your phone acts as a key to unlock the number. So, if the retailer’s network is compromised and they have your Apple Pay number, it won’t work, because it’s not authenticated by your device. You might reply, “what if someone steals my phone?” Apple Pay won’t work without biometrics being utilized. In other words, before I pay for something with Apply Pay, it scans my face to make sure that I’m me. More and more payment methods are going to authenticate like this. It’s not going to be based on a password that you know, but on a characteristic that you are. Fingerprints, facial or retinal scanning will be the way you pay for things in the future. Scary? It doesn’t have to be.
Let me be clear, just because new is coming, that doesn’t mean we need to automatically embrace it. What I’m advocating is an awareness of change instead of a “head in the sand” mentality, and a willingness to engage the change, embracing the new, or advocating for a different kind of new, which may actually be what was old. This episode is calling for an awareness to change rather than necessarily an embrace of it. Some change will be good. Some change will be bad. It’s up to us to determine which is which, and then make business and personal adjustments that respond to the shifting reality. Maybe even more important than that is having an infrastructure that can almost respond to this change in real time, because it’s only going to accelerate.
One thing that hasn’t changed is Foundation Bank and MBC’s commitment to being a trustworthy financial solutions provider. You can trust us to be a partner in your small business and family finances. What can we help you with today? Start a conversation with us today by visiting foundationbank.org. We also hope you’ll subscribe to this podcast to it in your favorite podcast app and share it on social media. These episodes are not recommendations specific to your own unique circumstances. Please consult your own advisors. Foundation Bank and MBC are a member FDIC and an equal housing lender, and until our next episode, God bless you..
-President Chad P. Wilson, CFP
Today’s episode of “Money Matters” was written and recorded by President Chad P. Wilson of Foundation Bank/McKenzie Banking Company on October 1, 2024. This episode does not constitute financial advice. Please consult a financial professional to discuss your specific needs. Any rates mentioned are subject to change and are accurate as of the recording date. MBC/Foundation Bank is an Equal Housing Lender, Member FDIC.