The Economy - What are you doing to weather the storm?
What is your main strategy?
- Increase sales (34%, 33 Votes)
- Decrease costs (34%, 33 Votes)
- Business as usual (14%, 13 Votes)
- Diversify (13%, 12 Votes)
- Reduce prices (5%, 5 Votes)
Total Voters: 96
Loading …There is no denying it - we are in turbulent economic times.
All indicators show that the fast approaching storm is here. Capital spending has been slashed. Revenues are down. Workers are being laid off. And experts say it will get worse before it gets better.
So what are you doing about it? How do you plan to weather the storm?
- By increasing your sales and marketing effort?
- Diversifying your business?
- Reducing operating costs?
Let us know what you think.
If you have ideas that may help others, feel free to share them. If you have questions that need answers, ask them. Feel free to post your comments here on our blog.
February 17th, 2009 at 12:13 pm
Northern has been committed to an aggressive sales effort for the last two years and in my view should be part of any companies long term goal. We have already reduced our operating costs dramatically and have made being a low cost producer part of our culture. The problem with diversifying is it drives up costs so we avoid it at all costs.
February 17th, 2009 at 2:05 pm
With the economy contracting, there will be a lot of good companies out there that unfortunately will not survive. Although cost is a major element in every project we do, it is not the only thing; our customers still deserve the quality they have come to expect. Material Flow Systems embarked on a successful aggressive cost cutting strategy two years ago which has positioned us to weather this economic upheaval. It will still require a lot of hard work as well as partnering with other companies to survive. Companies need to take a look at the tax breaks for equipment, which the stimulus package has to offer, and take full advantage of them. In that way they will be the ones that will be well positioned as the economy gets back on track. We must all look at this as a challenge and how it will make our companies stronger in the end.
February 18th, 2009 at 10:56 am
Three years ago we begin to diversify and we are happy we did, by diversifying it has allowed us to venture into areas in which we were never involved. Cost of operations have remained the same. This diversification in other areas has help us maintain strong sales. If we had not done this sales would be down by 30-40%. In less than 100 years the US economy and the center of our lives moved from the farm to a fabrication shop, then to a factory, and now it is shifting again to a knowledge based manufacturing organization. I think we all understand that change is inevitable. Needs change and markets with them. Each change creates new demands and one must adapt or be crushed by the movement of the social process. We can pursue and embrace change and it is up to us to develop a plan that will effectively manage the introduction of what is happening. I feel this is what will enable us to be successful in the long term.
February 21st, 2009 at 4:05 am
Productivity thats the key.
I think that the point that has been missed altogether is that the “USA” has been living beyond it means or earnings for years” Trade defer sets, years and years. This is catch up or a correction. The World power (money) has changed hands. The capital injection into “Ford” “GM” etc will only produce more unsold cars of poor quality and more problems. Inflation for “one” because there is too much money in the system. We must get back to a Bank rate of 10% world wide not just here, money must be valueable.
i’m with Micheal Gibbany we are now buying European machinery from their Knowledge based manufactureing company’s not from the USA.
February 24th, 2009 at 2:45 pm
As James Owens noted in his Cowboy Ethics, “When riding through hell….keep riding.” I believe the operative word is “through”, it lets us know that at some point we will pass through the bad times. We are all partners in this current journey. We must open our ears and listen to what our partners are struggling with and offer to lend them a hand. In doing so, we would hope an occasional hand would be extended to us. The outcome will be closer relationships once the current journey through hell has been completed.
Keep Riding.