WoodDigest.com |

After an unprecedented run-up in the residential housing market over the past five years, the market is noticeably cooling off. If you are one of those who benefited from this growth, then you are likely now experiencing this cooling off. Many will consider these as rainy days for the business, but you have many opportunities now available to you — don’t allow those opportunities to be wasted.

I was born and raised on a dairy farm. Rainy days were not days to relax, they were days to work on all the chores we could not find time to do during good weather. Without the rainy days and the tasks we accomplished then, the tasks we had to accomplish on sunny days were put at risk.

Unfortunately, many manufacturers don’t take advantage of these “rainy days;” instead they react like threatened turtles. They withdraw into a “defensive mode.” They cut capital investment, expenses and labor wherever possible and enter into semi-hibernation waiting for the next growth cycle. It is your choice to adopt a “turtle posture” and miss tremendous opportunities or take advantage of this “rainy day” to better position yourself for the next growth period. Plus there are numerous opportunities to mitigate the impact of the current downturn.

COST CONTAINMENT

Certainly cost containment is appropriate and necessary at the end of any extended growth period. During growth periods, management’s focus is turned to capacity issues and cost containment becomes secondary. Now is the perfect time to tighten up those controls that were relaxed or ignored.

If labor reductions are necessary, maintain an eye to the future when you will need more good people. Inevitably during growth periods people were hired and retained more for convenience or necessity than their true value. Now is the time to purge the underperformers while keeping in mind that some of your recent hires may have more value and potential than some of your longer term employees. This is an opportunity to improve your “line up;” take advantage of that.

INVESTING IN THE FUTURE

This is also a tremendous opportunity to invest in your retained people and your own future.

Use this time to do training and cross training. Take advantage of both external programs and your own internal training capabilities. Search out beneficial programs at your local technical schools and community colleges and more specific trade programs that are available. Stiles Education Center and American Wood Finishing Institute (AWFI) immediately come to mind as sources for trade-specific training. Many courses are available from a wide range of sources as “distance learning” courses which your workforce can receive right in your facility or at home without need of a traditional classroom environment and travel.