Hydraulicspneumatics Com Sites Hydraulicspneumatics com Files Uploads Custom Inline Archive Www hydraulicspneumatics com Content Site200 Articles 09 01 2009 84764 Alan Hitchc 00000057109

A time to build up. . .

Sept. 14, 2009
To everything, there is a season, and those attending the Industrial Economic Outlook Conference learned that our economy is entering a season of recovery. Conducted by the National Fluid Power Association, this annual conference was held in ...

To everything, there is a season, and those attending the Industrial Economic Outlook Conference learned that our economy is entering a season of recovery. Conducted by the National Fluid Power Association, this annual conference was held in suburban Chicago last month and brought together a knowledgeable (and often entertaining) group of economic experts.

I suppose some of the speakers returning from last year’s conference owe me an “I told you so.” That’s because they described how we were in the midst of a steep economic downturn, even though people I spoke with in the fluid power industry were still observing a healthy business climate. I addressed this in my “Editor’s Page” a year ago, and shortly after, the bottom fell out. So it appears that economic activity in the fluid power industry lags behind that of the general economy.

Learning of an impending recovery is good news because many of us have been wondering when the economy would hit rock bottom. However, most speakers at this year’s conference tempered the good news by saying that the recovery will be slow.

One of the popular speakers at the conference is Alan Beaulieu, of the Institute for Trend Research, Boscawen, N.H. (www.ecotrends.org) According to Beaulieu, our economy won’t begin an appreciable upturn until about mid- February of 2010. And even then, the recovery will be relatively slow — not achieving the economic level of December 2007 until perhaps the second half of 2012. Beaulieu implied that this is not good news for the immediate future, but he acknowledged, nonetheless, that we are entering a state of recovery, so businesses should prepare for impending growth.

So what should you do to prepare? Beaulieu described eight courses of action a business should take in the late stage of a recession and early stage of recovery.

Space prohibits much detail here, but he suggested:
1. Prepare training programs
2. If possible, negotiate union contracts
3. Develop advertising and marketing programs
4. Enter or renegotiate long-term leases
5. Look for additional vendors
6. Consider capital expenditures in light of market-bymarket potential
7. Make acquisitions — use pessimism to your advantage
8. People will be scared, so lead with a “can-do” attitude.

This advice is based on the fact that your company will grow, so you must prepare for this upturn in business. Training prepares your people, advertising prepares your current and potential new customers to recognize that your company is among the strong that have survived, and finding new vendors can enhance your production. Beaulieu also said that as the economy improves, other companies will be hiring, so take the necessary action to ensure that your key people won’t look to greener pastures.

Alan Hitchcox
editor
[email protected]

Continue Reading

Handbook Simplifies Advanced Aspects of Mobile Hydraulic Controls

May 10, 2017
Author Brendan Casey lays out his hydraulics know-how that he acquired over 27 years in a simple handbook made for people that want to improve their skills in troubleshooting ...

The Impacts of Electrification on Fluid Power Systems

May 15, 2023
Electrification presents challenges as well as opportunities to re-evaluate and improve upon the design of hydraulics and pneumatics.

Sponsored Recommendations

MONITORING RELAYS — TYPES AND APPLICATIONS

May 15, 2024
Production equipment is expensive and needs to be protected against input abnormalities such as voltage, current, frequency, and phase to stay online and in operation for the ...

Circuit Protection Devices & Busbars

March 13, 2024
With experienced Product Engineers and Customer Service personnel, Altech provides solutions to your most pressing application challenges. All with one thought in mind - to ensure...

All-In-One DC-UPS Power Solutions

March 13, 2024
Introducing the All-In-One DC-UPS, a versatile solution combining multiple functionalities in a single device. Serving as a power supply, battery charger, battery care module,...

Motor Disconnect Switches

March 13, 2024
With experienced Product Engineers and Customer Service personnel, Altech provides solutions to your most pressing application challenges. All with one thought in mind - to ensure...