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Times are tough and money is tight - but companies that have weathered the previous recessions have learned how to survive even the roughest times, and come out stronger. A wise manager sees a recession as an opportunity to reorganize processes and reposition their company in the changing market place. They know that in a recession equipment can be bought at a discount and with available financing. When the production line isn't in constant use, they can study their processes, and streamline them for greater efficiency. The high unemployment rate means that more qualified people are in the marketplace, looking for jobs - and hiring them now gives them ample time to integrate them into the company, and train them properly by working with the current engineers on the projects they still have. Experienced management also know that no matter how bad the economic downturn may be, it will end - and they plan for that future. With fewer projects in process, there is more time to spend with their existing customers, solidifying relationships, introducing them to new products, and to work on educating new prospects about their products and services. They might not make the sale today, but when business begins to pick up once again, their prospects know about their services and are ready to make a decision. Successful companies also give their engineers this same opportunity. Downtime can be used to educate and train the engineers about new processes, machines and equipment - and they know that much of the training and education can be done for little or no cost. After all, the economic slowdown affects their suppliers as well; they are more than willing to present their new, exciting technologies. When business picks up it will be too late; once more, everyone will be too busy and there won't be time for education and training. This is not to say that weathering the tough times is easy - even for a company that has survived previous recessions. For those companies who are facing their first recession, this is the opportunity to take a long, hard look at your equipment and processes, and make some decisions. First, consider your equipment: Die-casting machines, furnaces, trim presses, handling robots, moulds, die heating and cooling equipment. This represents a huge investment on the part of your company - but this is the time to honestly appraise each piece and the impact it makes on your product and your company. Ask yourself: How old is this equipment? Is this machine really doing its job? Can we compete in today’s global market with die casters in Europe and Asian who replace their machines frequently? Can we produce the high quality today’s casting buyer expect? Consider your technology: Ask yourself if your technology is state of the art - or twenty years out of date? Is the technology in your facility attracting the level of technicians with whom you want to work? Is what you are using helping you to produce high quality castings at competitive prices? Consider your facility: Is it clean? Do your employees like to come into the facility? Do you? Or does it look like a junkyard and the only people apply for jobs are the ones who are unable to read and write? Last - but most definitely not least, consider your employees: Machine operators, tool-makers, engineers, maintenance and material-handling personnel. Are they educated for their positions? Are they well-trained in the equipment and processes they handle? Do you pay top wages? Or do you have employees who are working on your expensive machines - but whom you wouldn't trust to drive your new car? The fact is that many die casters are going out of business as a result of the recession - and as a result of their own lack of foresight. Before you join them, that time out, sit down and think about where you want to be in the coming years. See this business slow down as a chance to evaluate your company's strengths and weaknesses, to see what no longer serves you and your company, to determine what does work for you and to decide how you can build for the next economic upswing. It has been said that this recession will end; they always do. The only question is where your company will be when it does: on the list of those that didn't make it, or fitter and stronger, and ready for the future? R. Kind, Ke Roth, Magma Foundry Technologies, Inc, Schaumburg, IL, Phone: 847-969-1001, Web: www.magmasoft.com
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