Global Fastener News

PERSPECTIVE: Tips on Surviving the Recession

John Wolz

The following are excerpts from responses to a FIN Survey question on what companies are doing to survive the economic downturn.

Manage cash flow and inventory closely to cope with slow economy and declining demand.
Add new products to generate new source of revenue.
Control expenses and cut spending.
Adding manufacturing processes to do more in-house.
Adding additional product to complete a line.
Trimming costs through automation, updated technology and machines.
Adding franchisees to make up lost sales from current franchises.
Being more aggressive with our sales people.
Being more flexible in satisfying our customer’s demands.
Belt tightening and trimming margins to get sales.
Working closely with reps to support sales effort.
Buy less, turn more. Decrease inventory. Drop prices to match the stupid competitors who think 15% is a good margin.
Entering new markets and adding new products.
Expand sales territories with travel.
Negotiating rep commissions to lower expenses.
Reducing staff.
Only one buyer goes to trade shows.
Diversifying product line.
Doing more inhouse to cut subcontracted services.
Expand product line and value added services.
Increasing our outside sales force by one in the first quarter and another in the third quarter. Add branch to expand market while competitors are cutting back.
Minimum staffing, diversify customer base, aggressive quotes and minimize errors.
More personal contacts.
Increase marketing efforts and Internet presence.
Increased advertising budget and overall exposure through sales promotions.
Increasing incentives for salespeople to bring in new accounts.
Increasing marketing through website changes and increased direct outside sales coverage.
Increasing marketing, holding costs down, shopping for wire (hopefully reducing that cost).
Increasing stock levels to avoid delivery delays and meet customer needs.
Stock parts customers want, cut down on the fluff.
Keep close watch on receivables.
Looking to enter other markets.
Listen to and partner with our customers. Look out for their bottom line.
Considering consolidating or purchasing a company.
Looking for new product line to produce.
Using public relations and inexpensive email blasts. Substitute telemarketing for more costly outside sales to smaller accounts.
Making more product in Central America to offset Asian product.
Work closely with customers to protect current business.
Not spending a penny on anything unnecessary.
New product development.
Reducing inventory, hoarding cash and targeting growth markets.
Reduced wages, benefits, hours, unpaid days off.
Increase brand recognition through aggressive advertising & marketing campaigns.
Trying to sell off expensive inventory, reducing imports and aiming at specific market segments.
Improve ability to run small quantities with short leads.
Updating website and becoming more aggressive in new business development.
Plant consolidations, in-sourcing certain processing, reducing wage & benefit costs, negotiating price increases, and aggressively managing cash.
Zero debt. Cash is king. Without cash, it will be hard to stay alive. �2009 FastenerNews.com