You would have to be hiding under a rock to not hear that the market sold off. The S&P 500 sold off 3%; the Dow tumbled 1,000 points, and tech company leaders lost a combined $1 trillion intraday (recovering almost half later in the day).
In the last month, we've participated in at least six economic forecast presentations or discussions with experts (economic, banking, investment, manufacturing). Although they each had nuances, common themes emerged. Adding our expertise into the mix, we see volatility on the horizon.
Lisa Anderson of LMA Consulting Group was quoted in Manufacturing Dive about how manufacturers can navigate a slowing economy.
Special Report: How Companies Should Reshape to Succeed in 2023 & Take Advantage of Huge Opportunities Coming Down the Pike
In the last few weeks, I've participated in three different economic events, talked with trusted advisors and seen what clients are experiencing. From banks to economists to executives, differing views emerge. But, what is the bottom line?
There is no doubt we are struggling with volatility in the supply chain. Inflation is the hot topic on one hand with rising prices, difficulty in finding people, wage inflation and much more.
Manufacturers are experiencing continued inflationary pressures threatening customer service and profit margins with record-breaking price increases and lack of material availability. To add fuel to the fire, they are also starting to worry about preparing for a potential recession.
Because we live in a global, supply chain disrupted world amidst record-breaking prices for food, commodities and oil (and all products dependent on these industries), not only are businesses looking to navigate inflationary pressures, but also deflationary pressures. Inflation can lead to deflation as consumers panic and demand softens.
Businesses can survive and thrive in a recession if they retool their operations well in advance of the economic downturn.
Expand your thinking of your customer base to GLOBAL.
