This episode is about tactics for manufacturing companies WHEN the recession hits. That’s right, I said WHEN, not IF. If there is one thing that nobody understands, it’s our economy. There is little evidence of a recession proof economy, so we need to spend some time discussing how to better prepare.
Are you ready for a recession?
1. Do you have a diversified customer base?
2. Maintain proper overhead (building ego).
3. Review your debt – did those decisions result in a return?
4. Strategic purchase of capital equipment
a. Measure your ROI
b. Invest in technology to stay productive and ahead of the competition
c. Don’t spend money just for a write off…have a strategic reason
d. Should you pay cash or get a loan?
5. Does your company provide a critical part or service that is recession proof?
6. Is your customer base recession proof or vulnerable?
7. Is your product or process difficult to replicate or will your customers be looking to lower their costs?