It won’t have escaped anyone’s attention that we’re in the middle of a financial crisis. How serious it is depends on what newspaper you read. One thing is sure, though, costs need to be cut in line with volume forecasts which seem to be continually revised downwards. We are working with clients at the moment to increase efficiency in the usual areas, production and logistics, as well as addressing some new issues, such as efficiency increases in the area of innovation.
Companies are presently working on the basis of wanting to get more bangs for the buck, in other words wanting to answer the question how do I get more out of my R&D without increasing my headcount.
But what then? Costs can only be cut so far and forward looking companies are looking to additionally refocus their activities to replace lost sales in traditional areas with new sales in new markets. This approach is twofold. On the one hand, a short term replacement of sales volume and on the other hand using the time now to invest in innovation for the future.
The successful companies will be the ones who not only pare everything to the bone now, but the far sighted ones who have invested to catch the upward wave of a future economic recovery.