Recession Talks Are Depressing
A recent conversation with a couple metalcasting executives left us with the overwhelming urge to go home and stuff cash in our mattresses.
Topics of conversation:
- the weak dollar
- increasing price of commodities, which are bound to increase even more as Chinese development sucks up our global resources
- increasing energy costs
- the lack of an upcoming industry to bail out the economy, like computers did for 1970s inflation
- the deterioration of the environment
Are we one bad market day from waving Hoover flags? Despite the conversation, this metalcasting executive was still positive about the future of his company. It’s positioned as a value-added supplier. Many long-term parts have kept the same price due to creative packaging and lean maneuvers, keeping his customers happy. Every new part is a conversion from another material or process, so the potential customer list is vast.
According to this month’s web poll, 70% of respondents agreed that judging by casting sales, the U.S. economy was in a recession. Perhaps it is time to be conservative in your operations, but weathering a recession doesn’t have to mean boarding up the windows and stocking up on canned goods until the storm passes. While you are tackling cost-saving initiatives in your facility, don’t forget about cost-saving initiatives for your customers. They are feeling the same effects you are and may be more inclined to consider that casting conversion idea you’ve been pitching for years.