How Manufacturing Fends Off Credit Squeeze
Don’t be the CFO who says, “I should have zigged when I zagged."
Manufacturers can’t afford to wait any longer. For two years, CFOs and controllers have managed supply-chain disruptions, labor shortages, and surging prices. Typically, these developments could require most manufacturers to raise prices to survive.
In Q4 of 2022, there potentially is a looming recession. The generally accepted definition of a recession of two consecutive quarters with a declining gross national product actually happened this summer. Yet, the National Bureau of Economic Research, which is the official scorekeeper, has not yet made the proclamation.
Normally, a recession means no consumer price hikes and less access to capital. Unfortunately, you can’t spell capitalism or keep a factory running without capital. So, carpe diem.
If manufacturers are feeling the pain today, the next six months are going to leave a mark. To mitigate the pending credit squeeze, here are five things manufacturers need to do today.
- Plan Ahead Before It’s Too Late
- Access Working Capital Before You Need It
- Stretch Price Elasticity
- Closely Track Costs, Margins
- Turn Data Into Dollars