Purchasing Managers Index (PMI) is down in Eurozone well below 50 %. While 2018 was a remarkably good year according to PMI, and a return to 2014 – 2017 rates after 2018 could be expected, it is possible that the PMI in 2019 is going even lower and signaling a new economic crash. Brexit and German manufacturing drop are definitely not positive signs. See Bloomberg, Business Insider, Financial Times.
How can manufacturing companies prepare for a new economic crash, if there is one?
Recognize global trends effect on your business
If global trends are mistaken for local market and customer trends, very destructive decisions can be taken.
Do not focus only on short term
It is an instinctive reaction to focus on survival by directing all resources to short term results and neglecting long term investments. But companies that stop investing in their long term roadmap will exit the financial crisis much weaker.
Crisis is an opportunity to improve efficiency
It is hard to convince managers that something successful is actually wrong. However, the same managers might be much more open to automation in the times of crisis when their staff and budgets are contracting.
If the predictions are true, then remain calm, brace for impact, and follow the above 3 suggestions. Otherwise I hope that we and our kids will never experience another economic crash.
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