With the collapse in the housing market and the subsequent recession, everyone has had to become an economist. While most people get their information from the news and the stock market analysts, those individuals who work for an industrial supply company automatically have their finger on the pulse of the economy. This is because from their perspective, they see the struggles that our corex industries are undergoing and the ways that companies are finding to survive and even thrive in a challenging economic environment.
Take an industrial supply company that services the warehousing industry, for instance. Clearly, if retail sales are down, warehouse activity will be down as well. This slowdown trickles down to the company that supplies them with their essential warehouse supplies.
Orders for packaging products will be down; companies will not be expanding, so they will not be ordering large ticket products like pallet racks and forklifts, etc. Slowdown in one sector means slowdown in all sectors. What proactive measures can a warehouse supplies company take?
While contraction is one option, a forward thinking company always looks for ways to expand. An industrial supply company that has always enjoyed success in its home state, can expand its online presence and offer its expertise to a much larger customer base. With its years of experience in the materials handling industry, it will already have the infrastructure and contacts in place. It is just a matter of offering its services to a larger market.
While the company may have enjoyed buoyant new forklift sales throughout most of its history, in this tight economy, new vehicle sales are down, while used equipment sales are up. This long-established industrial supply company will already have access to cheap used forklifts and, have factory trained technicians at their disposal. They can offer reconditioned forklifts with as good as or better than factory warranties. This is a win-win situation for both the warehouse supply company and the buyer, who can purchase a used forklift cheaply and still have the confidence that it will perform like new.
An industrial supply company like this knows the value of cooperation versus competition in a tough economic climate. Of course, they will keep an eye on their competitors and keep their prices as low as possible. However, they will not sacrifice customer service or sell inferior products just in order to have the cheapest prices.
This company knows the importance of keeping their current loyal customer base at the same time they expand their customer network. In the long run, only first rate service combined with quality products and low prices will ensure survival and growth in a tight economy.