More than half of respondents to a recent survey said they plan to identify new market segments and jumpstart aggressive sales and marketing efforts when asked what changes their company would likely make over the next 12 months.
The unscientific poll taken of Manufacturing and Technology eJournal readers from July 22 through July 28 drew more than 350 responses. Readers were asked to choose more as many answers that applied to their situation.
Other top answers include expanding territory to look for new business wherever it may be (more than 36 percent), looking to existing vendors for cost reductions (32 percent) and eliminating underperforming products and services to conserve capital (24 percent).
Less than 24 percent said they plan to layoff employees.
Other answers include reducing salaries or days worked to cut costs and save jobs (21 percent); staying closer to home for business to cut costs (12.5 percent); asking creditors for extended payment terms and/or grace period (9 percent); selling company assets (9 percent); applying for a business loan (6 percent); and pursuing other options (6 percent).
David Velie, managing partner of Cincinnati, Ohio-based Amend Consulting/Techsolve, says there is still time to take meaningful action to stay competitive.
When the CEO of one of Velie's clients asked his team to cut budgets, for example, the move meant eliminating the window cleaning service. To set an example, the CEO stuck around after work and cleaned windows himself.
Velie's other suggestions include:
* Present the problem to your team and use their creativity to remove and cut costs;
* Streamline processes;
*Get to the core of how you compete and remove excess;
*Reduce travel;
*Schedule coffee meetings instead of breakfast or lunch;
*Job share with attrition of people.
“Like the weather, you cannot change this recession,” Velie said. “You can however change how you respond to it, reshape your competitive factors and engage your people to build a more competitive business.”
Outlook on the economy
Looking down the road a year, a majority of Manufacturing & Technology eJournal's respondents thought the economy would be at least as good as it is now.
More than 53 percent expect the economy to be somewhat better in 12 months and almost 2 percent say it will be much better. 24 percent feel the economy will be unchanged and only 15 percent think it will be worse or much worse. The rest choose not to answer.
One reader who asked not be identified, said the economy is not all to blame for the slow work at his shop. “Our owner and management team has made some pretty stupid decisions, that I feel have greatly impacted the company,” he said.
Last year, for example, the business bought a new truck. Although many of its clients are suppliers for a particular truck brand, the company purchased a different brand.
“To my knowledge we have not received a P.O. from any of the companies since,” he said. “It is hard to pull up to a customer's facility, which is hurting for work, and they notice you have not supported them.”
Survey breakdown
Of those who responded, more than 30 percent identified themselves as a business owner; 12 percent said they were an executive; 19 percent were in upper management; 18 percent were a manager/administrator; and less than 10 percent were front-line employees.
Almost 47 percent of respondents who identified themselves as Republican; 13 percent Democrat; 20 percent Independent; and 20 percent said they were “other” or did not respond.
Sources for this article include David Velie of Amend Consulting/Techsolve. Reach him at http://www.amendllc.com
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