One of the hardest hit industries during a recession is the manufacturing industry. It is simple logic: when consumers stop buying retailers slow orders which means less work for the manufacturing sector. But does that mean a manufacturing business needs to roll over and just try to weather the recession and hope for better times? The answer is no.
The Michigan Manufacturing Technology Center has started an event called “Proud to Manufacture in Michigan” where manufacturers will gather to discuss the best practices they found through working in the most recent recession.
Such adversity can be a time for a business to make a transition. Many businesses fall on hard times so there are plenty of opportunities for business acquisitions or mergers to take place. There are also opportunities to rework a business plan. This could be cutting products produced that are not very profitable or expand the manufacturing into related areas that you did not have the time for previously. Other potential changes to the company can be areas including lean manufacturing, energy usage and environmental compliance, talent development, diversification, and continuous improvement strategies.
When business is successful and busy we have a tendency to become stagnant. The mentality is “as long as the money is coming in we don’t need to change.” A slow down should be treated as an opportunity for a corporation to improve itself and when the economy rebounds, that business is in an even better position than it was before.
Source: “Manufacturers to share best practices on weathering the recession” by Joe Boomgaard of MiBiz