Positioning Yourself During A Recession

You can be ready to hit the ground running when theemployees now will benefit the company now and in
recession is over if you spend wisely and make usethe future.
of your extra time now. The usual response to aThere are presently an awful lot of unemployed
downturn in the economy is to overreact and stopexperts out there who have been recently
spending entirely. This not only fuels the recession,downsized. There are more top notch recruits out
but severely hinders your chances of gaining athere now then there has been for nearly thirty
significant increase in market share. Only you knowyears! Now is the time to take advantage of the
your true spending limitations. If you've done yoursituation and put some of those great employees to
work up front; improving throughput and eliminatingwork in your company. Yes, there is always the
waste, then you should be in a position to keep onchance that these experienced workers will leave for
spending. This doesn't mean you spend unreasonably;greener pastures once the market changes, but only
just that you should continue to spend if you haveif you make it more attractive for them to do so.
the resources.Train your management staff in how to retain those
It is inevitable that some companies will not weatheroutstanding employees and start building a better
the storm. Those that have ignored implementationworkforce.
of continuous improvement and lean manufacturingYou can take advantage of the skills and experience
will find it difficult to survive in a poor economy. Atthese new employees have to set up your new
the very least, if they make it out of the recessionprograms or to train your workforce. Hire a Black belt
at all, they will not be the same company they werein six-sigma and let that person train the others to be
prior to the downturn. If you know your competition,more efficient and cost conscious. Hire that
and you can recognize those which are faltering, thenexperienced CNC programmer and have that
you can position yourself to take on the businessemployee put together and implement your DNC
they can no longer handle.system. Find that warehouse guru and let that
RETAIN YOUR WORKFORCE AND TRAINperson establish your pick and place system or that
As your business begins to slow, do what you can tokanban program. The examples are endless.
avoid layoffs. Simply because everyone is doing itIf adding to your payroll isn't an option at this time
does not mean it is a good idea. Short term gainsyou might consider hiring a consultant to help out
most often bring long term losses. Let the lemmingswith those new projects and systems. By using a
run off of the cliff without you. A lot of time andconsultant you get those things done that you do
money was invested to train those workers, so whynot presently have the skills for without having the
just let them go? You wouldn't throw away yourcost burden of a full time employee. When your
machinery, so why throw away your employees?project is complete you will not have to try and find
Take advantage of the additional time you now haveways to keep them busy nor do you need to pay
to do those things you said you didn't have time forunemployment, etc. So use your excess time wisely
in the past. Things which will improve you bottom line.and turn what seems to be a bad thing into a good
Things which will position your company take onone.
business being cast off now, as well as the businessPURCHASE THAT NEW EQUIPMENT
that will come after the recession.Another great opportunity you have right now is the
Make use of that extra time for house cleaning. Getprocurement of new state of the art equipment.
rid of all those old parts that couldn't be repaired. SellMachine builders are feeling the crunch too. They are
off or recycle raw materials that you no longer havereducing costs to keep their plants running and retain
a use for. Organize those items you still use.their employees. As a result, there are some really
Re-arrange your warehouse or departments forgood deals out there on machine tools.
better work flow. Clean and paint your equipment soPurchasing those needed tools at this time will not
it will continue to serve your needs long into theonly save you money, but you can get what you
future.want right now and at a lower cost. If you wait until
Now is great time to train your workforce. Make usethe economy recovers everyone will want the same
of the extra time you have to establish a trainingthings at the same time. Selections will be dramatically
program. Create those "Job Descriptions" and "Workreduced because it was not economical to replace
Procedures". Find out where you are lacking and getthe tools that were sold. Since the manufacturers are
those people trained. "Cross-Train" your workforce toshort skilled labor from layoffs, lead times will be
understand and perform all the necessary jobs youquite long.
have. Teach them to run all of the availableThey will not be able to get the materials needed to
machinery. Train them to function not just in theirbuild new tools because everything will be in short
department, but in all of your departments. A wellsupply and as we all know, shorter supply means
trained workforce not only addresses thosehigher prices. If you buy those tools now you will
scheduling nightmares, but helps to motivate yourhave them when everyone else is waiting to get
employees. By keeping your employee base intacttheirs. This means you will have an opportunity to
and training them; you will have an experienced andgrab up more of the market share.
efficient workforce in place when the recession isHaving that new equipment in house now also means
over. Isn't it much more attractive to have thoseyou can start learning to use it. Train your operators
experienced workers in place, than it is to have to goto run the new equipment now, while you have the
out and hire new employees and train them whileextra time. Learn how to program the machines and
you are attempting to take on new business?start determining which jobs might run quicker, more
Take advantage of this extra time to tackle some ofreliably, or more accurately. Train your maintenance
those programs that will improve your operations.personnel and set up your maintenance schedules.
Implement process improvement programs. GetStart saving now and position yourself to handle
some of your employees formally trained in six-sigmathose new jobs when you get them.
or lean manufacturing techniques and start usingNO MORE EXCUSES
them. Put a structured preventive maintenanceAll those skilled employees that you couldn't find
program in place. Get those "green" programs up andbefore are out there now. All that equipment that
running. All of these training programs truly cost veryyou couldn't afford is inexpensive right now. All that
little to nothing at all. The large investment is time,time you didn't have for training and implementing
and time is what you have a lot of right now. Don'tthose new programs is at hand. The time for making
look at training as an unwarranted cash outflowexcuses is over. What seems like a death knell to
during hard times, but a prudent and provenother companies can mean new life for yours. Look
investment in the future of your business.at this downturn as a long needed opportunity to
HIRE THOSE HIGHLY SKILLED WORKERSimprove operations, better your workforce and
Waiting to hire new employees when the economyposition yourself for growth. So if you have it, then
improves might sound like rational thinking at present;spend that money and set yourself up for a
however, if you wait until then to start hiring, theprosperous future.
pool will be significantly smaller. Hiring those needed