How to Survive the Recession and Become a Stronger Manufacturing Company

By Mike Hart

The "great recession" that started in 2007 has walloped small manufacturing companies all over the world.  To survive, companies have had to cut their work force, reduce overhead costs, and eliminate unnecessary expenditures.  Credit is tight and cash flow is king.  In uncertain times, it is a sensible strategy to postpone capital investment in plant and equipment until the economic outlook is more predictable.

Spending Cutbacks Aren't Enough

In response to such a severe downturn, it is a natural impulse to overreact and arbitrarily cut all discretionary spending to the bone.  Taking aggressive action on spending feels like the right thing to do.  But if you fight the great recession solely with spending cutbacks, you will emerge from the it weak and vulnerable to healthier competitors.