Global Fastener News

FIN Survey: Tips for Surviving the Recession

The following are excerpts from responses to the 30th annual FIN Survey question on what companies are doing to survive the economic downturn.

Manage cash flow and inventory closely to cope with slow economy & declining demand.

Add new products to generate new source of revenue.

Control expenses and cut spending.

Train employees to be efficient.

Adding manufacturing processes to do more inhouse.

Trimming costs through automation, updated technology and machines.

Adding franchisees to make up lost sales from current franchises.

Aggressively targeting new business.

Being more flexible in satisfying our customer’s demands.

Belt tightening and trimming margins to get sales.

Working closely with reps to support sales effort.

Buy less, turn more. Decrease inventory. Drop prices to
match the stupid competitors who think 15% is a good
margin.

Entering new markets and adding new products.

Expand sales territories with travel.

Negotiating rep commissions to lower expenses.

Reducing staff.

Only one buyer goes to trade shows.

Increasing our outside sales force by one in the first quarter and another in the third quarter. Add branch to expand market while competitors are cutting back.

Minimum staffing, diversify customer base, aggressive quotes and minimize errors.

More personal contacts.

Increase marketing efforts and Internet presence.

Expand distribution base.

Increasing incentives for salespeople to bring in new
accounts.

Increasing marketing through website changes and
increased direct outside sales coverage.

Increasing stock levels to avoid delivery delays and meet
customer needs

Stock parts customers want, cut down on the fluff.

Keep close watch on receivables.

Listen to and partner with our customers. Look out for their bottom line.

Using public relations and inexpensive email blasts. Substitute telemarketing for more costly outside sales to smaller prospects/accounts.

Manufacturing more product in Central America to offset Asian product.

Not putting all our eggs in one basket (one industry).

Not spending a penny on anything unnecessary.

Reducing inventory, hoarding cash and targeting growth markets.
Reduced wages, benefits, hours, unpaid days off.

Review internal costs such as office supplies.

Trying to sell off expensive inventory and aiming at specific market segments.

Improve ability to run small quantities with short lead times.

Adding equipment in a size range with few competitors.

Train staff on lean principles.

More proactive with key accounts.

Reduced inventory 17%, retired all our debt and are
hoarding our cash. We paid out year-end bonuses and
issued salary increases. We want our good employees to
feel secure and well taken care of. We are maintaining a
strong outside selling effort.

Doing it all better than the competition.

Zero debt. Cash is king. Without cash, it will be hard to stay
alive.
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