Supply Chain Connections

Dec 4 2008 8:14AM | Permalink | Email this | Comments (1) |
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By Glenn Singer

I have been talking to a lot of manufacturers over the past month and it seems that many are on their second or third round of layoffs which reflects the state of our industry. It has been my experience that layoffs tend to cast a dark environment among the companies that have invoked the downsizing. The attitude of the remaining employees is usually gloom and sometimes even negative. People just want to keep their heads down and weather the storm and all of this can lead to a negative “vibe” that is reflected to the market place and customers.

It is my belief that now is the time for manufacturers to begin planning and implementing a recovery strategy. The experts are beginning to tell us that the market is or has bottomed out and recovery will start slowly later next year and for sure in 2010. In fact, there are markets today that are not doing badly and many will begin to show growth in the very near future. I want to encourage manufacturers to take the time to review their builder strategies and programs today. Do you have a balanced builder portfolio? What is your strategy with the custom builder? Have you identified target local and regional builders? What will you do differently with the public builders when the market turns?

I also want to encourage manufacturers to meet with existing and target builders now to begin defining a marketing strategy that provides a “win-win” for the builder and the manufacturer. Many builders can use the assistance of the manufacturer as they re-engineer their product offerings. Manufacturers can provide valuable input as to consumer preferences, cost-saving products and strategies as well as sales training and product installation assistance.

Here is my point!! If you wait until the market turns around to begin these efforts, you will be too late. Builders are looking for assistance now and will be very loyal to those manufacturers who provide it to them today.