2025 – The Year of Efficiency – Trump, Musk and the Cost-Crunch

Happy New Year everyone!

2025 opens with what could become a watershed moment in Western politics. Trump’s second term. The reason I think that it has the potential to become an inflexion point is a combination of two people on a mission – Donald Trump and Elon Musk. Neither have any need or, I suspect desire, to earn favours on Capitol Hill and are far more motivated by making a difference.

One probably couldn’t happen without the other, but my eye is on Elon Musk as he gets his teeth stuck into government bureaucracy and waste. I am expecting a series of headlines over the year along the lines of the $640 toilet seat from 2016; I doubt that he is going to be short of headline-grabbing material. I also think that while some of the press might choose to be sceptical, the American taxpayer is going to be right behind him.

Despite not being an American taxpayer, I wish him all the best in his endeavor, I hope that he is so successful that government efficiency looms large with electorates across the West. Not meaning to be political here but public officials need to be held to account for the way they spend our tax $.

Government aside, I can’t help thinking that this focus on efficiency and cost saving will become infectious in the private sector too. Boards will start demanding what actions executives have taken to hone efficiency within their businesses, place more pressure on cost control and emphasis on doing more with less. Couple that with the AI initiatives to apply automation to various areas of the business and we have a movement focused on cost reduction.

There are so many areas that we can apply the cost reduction mantra so while there might be yet more of a squeeze on consultant spend, those that can embrace the agenda and bring cost reductive solutions that are more creative than “move the work to a cheaper location” could be in a strong position.

I don’t think 2025 is going to be dull! Happy New Year.