Canada’s Economic Recovery – 5 Tips on Building an Economic Recovery Plan

BC businesses have faced enormous challenges and pressure from global economic uncertainty in the past year, and although you cannot predict the future, shifts towards economic recovery have become more prevalent in recent months. 
From a Reuters News article dated November 19th, 2009, we learn that Bank of Canada Governor Mark Carney said “Canada's economic recovery is starting”.  Confidence in the Canadian economy has also been cited as soaring by the Canadian Institute of Chartered Accountants.  The survey by the Canadian Institute of Chartered Accountants found that 46% of respondents were optimistic about the economy over the next 12 months.  Compared to just 2% in the final quarter of 2008, this is a significant improvement!  So what does this mean for our BC technology community, and how can we benefit from this knowledge?

Looking Forward

Your business is surviving the recession.  You made the necessary adjustments, shed unprofitable or unreliable customers, deleted poor-selling products from your portfolio, and continued to deliver a strong return on investment.  You may have downsized, voluntarily or involuntarily, since the recession began - but at least you're still in business.
Planning is always a good idea when macroeconomic shifts are imminent. 
Here are my 5 tips on crafting an economic recovery plan:

• Don't wait for permission.  Most companies will not begin reinvesting until the Financial Postor the Bank of Canada says that the economy has recovered.  Get ahead of the crowd.  Craft your recovery plan now, and be ready for growth.
  
• Focus on high-potential customers.  Make sure you focus on building relationships with ambitious customers in growth industries where demand is going to soar once the economy fully recovers.  And don't forget to get geared up to take advantage of the demand that will grow once all other clients get their confidence back.
• Don't assume a return to normal.  The longer and deeper the recession, the more likely consumers will adjust their attitudes and behaviors permanently.  Their coping mechanisms may become ingrained and define a new normal.  In addition, the competitive landscape will have changed.  Listen closely to your customers and revise your market segmentation assumptions.
• BC manufacturing will remain focused on costs.  Many manufacturing industries (as opposed to services industries) are suffering from global overcapacity.  This may be evident in the electronic parts industry which has led to downward pressure on prices.  Economic recovery will not be as evident until excess inventories are reduced. 
• Develop scenarios.  How long the current recession will last is widely debated.  And whether the eventual economic recovery will be gradual or dramatic is equally unknown.  Marketers planning for 2010 should bear in mind Peter Drucker's wise advice: "A strategy is a sense of direction around which to improvise."  Know how you can source supplies and expand distribution in a hurry if demand suddenly spikes.

From all of us here at Dena Technologies, have a fantastic
holiday season, and see you in 2010!!!

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