Make Gains While Others Lose Ground

Even in the worst of markets there are businesses that not only survive, but prosper. Although many factors may contribute to their success, one factor in particular that can make a significant contribution to a company’s longevity is the ability to carefully monitor the market in search of opportunities and then successfully capitalize on those opportunities to make gains while others lose ground.

Market information abounds, but understandably finding the information that’s important to you may be a bit overwhelming given the hundreds of sources online, in print and on television. So, what do you look for when sifting through the tons of tidbits and data?

There are sector and regional areas that could give you insight to potential market opportunities, so be sure to watch for them. Let’s take a closer look at each one and see how your company could benefit.
The sector level. Even though our national economy is still in a recession, but that doesn’t mean everyone is suffering. The truth of an economic downturn is that when times get tough, some industrial sectors flourish while others just barely scrape by. For instance some analysts contend that during a recession, hospital spending goes up while research spending goes down. If your business has all its eggs in one market, this could mean either an abundant windfall or slim pickings, depending on which industries you’re servicing.

Way back on November 23, 2008 Financial Week report identified industrial sectors that were predicted to boom during our current recession, and which sectors were predicted to flop. Topping the boom list were the agricultural sector and engine, turbine and power transmission equipment makers. Not surprisingly, luxury and employment types of industries such as clothing accessory manufacturers, travel agencies, and employment and recruiting agencies, led the flop list.

What could this mean for your business?

Let’s say you were a mechanical engineering firm specializing in equipment prototypes and you worked with industrial manufacturers. While manufacturing in general may have been experiencing a slow down, you may have had an chance to open a door of opportunity in the engine, turbine and power transmission equipment market which was expected to thrive. Mechanical engineering prototyping may have very well been a transferable skill and since both markets had similar needs there may have been an opportunity to diversify into this growing market.

This is just an example of possible opportunities. Only you would know for sure which path, if any, is/was right for you. We’re not suggesting that you retool your entire operation for the slim possibility of profits, but we are suggesting that you should review your strengths to determine if there is an easily transferable skill set that can be applied to a more profitable sector, or if you have an opportunity to concentrate on vertical markets that are less impacted by the down economy while still maintaining your core capabilities.

The regional level. Similar to how the various sectors react differently during economic downturns, geographic regions also fluctuate. In November 2008 pockets of the Northeast had not yet fallen into recession. Today, some New England states, namely New Hampshire and Massachusetts are already on the upswing and experiencing economic recovery. MSN has published an interactive recession map from Moody’s that illustrates how the entire country is faring. NH is fortunate in that we were late to go into recession and early into economic recovery.

The point of looking at regional data is that no economic downturn, even if it is nationally recognized, has a uniformly geographic impact. Regional opportunities exist.

Now let’s say your business is located in New Hampshire but serves a national customer base. Knowing which regions are more severely affected by economic recession, and which regions were expected to have downturns and upturns, is valuable information when planning marketing campaigns for maximum return. Targeting regions with higher potential may offset poorly producing regions to temporarily maintain a more consistent overall revenue stream.

Keeping a vigilant eye on both sector and regional market health can lead to opportunities that others may miss. At the least, it may help help mitigate financial stressors during challenging times. Audit your surroundings and know where your company stands, then capitalize where you can to make gains while others lose ground.

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