Take the case of small companies riding high. The Mishawaka, Ind. based commercial graphics firm, which provides businesses with decorative markings for their products, had a growing stable of clients in the booming recreational vehicle and marine industries. The company enjoyed a growth of 10% annually since 2001, increasing the count of its employees from 50 to 75 within 6 years.
However, with the credit crunch hitting in 2008 and the bottom falling out of the RV market, the company would not be left far behind. About 70% of the business was tied to the industries which had been dependent on discretionary spending aspects and these had dropped off considerably. The purchasing power of the people had dropped considerably.
In 2007, the company had a growing base of customers which boomed in the marine and recreational vehicle industries. The company has since then enjoyed a growth of 10% every subsequent year with the employees expanding from 50 to 75. The credit crunch hitting in 2008 and the bottom fell out of the RV market.
Above 90% of the businesses were tied to the industries, with the sales slipping and firms running out of business. After a couple of layoffs, the company’s benefits were reduced to a great deal, so that when one job was cut, the talent pool could be kept in place with innovative management policies. Even with the cuts, the company had to be creative in terms of keeping its designers each of whom had differing strengths.
Why the company was suffering was something which something that needed to be handled. Monthly meets were held to inform employees about the new projects and the open door policy so as to keep the lines of communication open. This would foster better growth and expansion for the business and keep things in perspective.
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