SDR previously featured five key U.S. manufacturing arenas poised for growth in 2016 and beyond. The baseline for this discussion stems from a keynote presentation by Brian Beaulieu, CEO of ITR Economics, at the 2015 Colorado CEO Forum. Beaulieu also featured several high-level strategies to help business owners prepare their businesses for 2016 growth. With industries such as manufacturing, robotics, alternative energy and others poised to transform marketplaces, the time to prepare for adaptation is now.
We want to highlight some of Beaulieu’s strategies to help prepare your business for coming change as technology and operational and acquisition costs continue to evolve.
Budget for the rise
Some companies have neither the infrastructure nor the inventory to sustain significant growth opportunities. Growth opportunities often come with limited visibility into upcoming business quarters. It’s therefore wise to budget for initial growth opportunities and implement a budgetary review and repositioning process to accommodate sudden growth in tandem with market change. If your company is experiencing significant growth through Q1 and Q2 of 2016, for instance, creating quarterly budgets can provide nimble, market-driven responses, rather than being limited by annual budget parameters.
Expand credit offerings to garner market share
While reports from publications such as The Washington Post and The Huffington Post predict some degree of 2016 recession, other publications such as The Business Times and Fast Company expect several U.S. industries to continue growth well into 2016. Although some global markets are expected to experience economic slowdowns, such as China’s projected 2016 dip in annual economic growth, U.S.-based companies can leverage international market reductions by expanding credit offerings to capture greater market share.
Invest in customer market research to reduce price sensitivity
As Beaulieu shared, double-blind market research studies can provide invaluable insight necessary to adjust your pricing structure for optimal profitability. Even if projected 2016 economic growth fades into a mild recession, the ability to adjust price sensitivity is much easier to manage with accurate data. Regardless of market growth, gauging prospects with varying margin and price parameters can be more accurately evaluated with reliable data providing indicators for maximum profitability.
Here is a comprehensive list of the suggestions that Beaulieu shared:
Click here for a full review of Beaulieu’s presentation at the 2015 Colorado CEO Forum.