Without question, the challenge now is greater than ever to identify stable, let alone growth markets, particularly for many manufacturers. And, it's more important than ever to target markets that represent less sensitivity to economic conditions.
Research that I conducted for the Manufacturing Alliance of Philadelphia and the Urban Industry Initiative, not only revealed a needs-gap for which MAP President, Steve Jurash is developing new services, but it has deepened my own perspective on manufacturing growth challenges that lay ahead. After interviewing Owners, CEOs and Presidents throughout Philadelphia, a big challenge that I find exists begins internally, within the business culture itself. I am speaking of manufacturers that have relied mainly on "opportunistic selling" as a strategy to sustain or grow their businesses. By the way, "opportunistic selling strategy" is an oxymoron!
The bottom line is this. Many traditional manufacturers of durable goods and those who provide contract services, are dependant on markets highly sensitive to economic conditions. A term used to describe these markets is "cyclical". When the economy shifts, so do cyclical markets and so goes the business, either up or down. Thus, a severe decline and slow recovery during this recession for many manufacturers that serve "cyclical markets".
When I spoke on this subject at a past Philadelphia City Wide Manufacturer's Meeting sponsored by MAP. My strong advice to all
business owners in that meeting was straight forward... to develop a hedge marketing strategy, including a partial shift to markets that are less-cyclical.Also, add a process for developing new products for emerging market niches and finally, consider bi-directional/International market opportunities. For example, GroupLamerica, LLC is highly experienced at matching not only US manufactured products with Latin America markets, but conversely with interest in US manufacturing operations to access US markets.
The point is, with minimal investment and some out-of-the-box thinking, manufacturers can create a new strategy mix that will allow them to "hedge" against further negative shifts in the market. And without a doubt, it can accelerate business growth in a recovering market!
Tangerine Strategies, LLC is a Certified Vendor and Coaching-Consortium coach for the Manufacturing Alliance of Philadelphia membership. MAP assists with the resolution of manufacturer's challenges including, closing the skills gap that prevents companies from obtaining highly trained employees through the first of its kind Job Ready Program.
Copyright (C) Dennis Paris 2011
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