Develop quantifiable reasons you
are better than your competition.
“What people want in a downturn
is a metric. [They want to hear:]
‘I can fix this problem on the first
go-around, and I can fix it in four
hours, not six,’” Beaulieu
explained. Clients want to know
that quality is more than an
adverb.
Consider taking on subcontract
work if the backside of the cycle
begins to look recessionary.
Begin missionary efforts into new
markets.
Freeze expansion plans unless they
are related to the logical next step
for a particular company. If those
plans are made just to expand the
company’s reach, rethink those
plans.
A WALL STREET
PERSPECTIVE
Deceleration in the U.S.,
Then Globally
The industrial economy peaked in about
mid-2006 at about 5% annualized
growth, slowed down in 2007, and reaccelerated at the start of 2008, but that
reacceleration will not continue, according to Michael Schneider, CPA, managing director and senior research analyst
at Robert W. Baird and Company.
Companies in the valve industry are
all doing well, so it’s hard to imagine,
When things start leaning into a
recessionary cycle, Beaulieu suggested:
Begin reducing work forces. Don’t
tell employees that everyone will
keep their jobs, but let them know
most people will be okay—we’ve
been through this before.
Set budget reduction goals by
department.
Avoid long-term purchasing commitments.
Find a way to do business in the
counter cyclical or unaffected
areas (e.g. energy, travel, green,
Canada/exports, higher education,
healthcare, etc.).
Most importantly, Beaulieu told
attendees to bear in mind that in the
U.S. “we are still able to do things others only dream about. It’s your responsibility to your country to keep your
company profitable.”
BEAULIEU’S FORECAST: Commercial
construction will cool off in the second
half of 2009. There will be a 1.7%
decline in industrial production in 2009
and almost 4% in 2010. Employment
will continue to weaken; taxes will be
raised; the housing market will see more
declines in 2009 and 2010.
