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Al's Column
Article Number: 4668
 
OPTIMISM: There are among us the incorrigible optimists who will always see the glass half full— bless their hopeful hearts. A recent national survey found that manufacturers and wholesalers are starting to see positive signs of economic recovery. Respondents, 46%, expect their companies to rebound from the recession beginning in late 2009, and 44% believe it will be in early 2010. Talk about optimism, companies polled predict an earlier rebound for their businesses than for their industry or the U.S. economy. Factor in this: 40% of respondents reported their business as “declining” this year, compared to 12% in 2008. Only 9% described their companies as “thriving and growing.” That’s the American spirit, indomitable and unrelenting.

ADDENDUM: More than 920 manufacturer and distributor executives weighed in on current business conditions, growth strategies, operations, technology costs and risk management. The survey found companies are responding to the current economic conditions by implementing lean principles and streamlining operations to make businesses stronger and more competitive as “we climb out of the recession.” The top four growth strategies cited in the survey were new customer acquisition, increase domestic sales, increase sales to current customers, and increase brand recognition. Green initiatives are also a growing priority. As for the workforce, the outlook for 2010 appears bright, with only 11% projecting cuts and 44% planning to add employees. Good reasons for optimism.

UNDERWHELMING: Here’s a news flash: The National Retail Federation and the Retail Industry Leaders Association have halted their merger discussions. The two trade groups had announced their plans to merge in April. After two months, the retail groups probably couldn’t find sufficient common ground to join forces. A joint statement from the boards of directors of both organizations did not give a reason for ending the merger talks. How about a reason for starting the merger talks? In most instances like this it’s a struggle for power. Which group will give up its identity. Remember the merger of the Tufted Textile Manufacturers Association and the American Carpet Institute? That was fruitful; the Carpet & Rug Institute emerged.

FAMILY TIES: Mike Henning of Henning Family Business Center lists five personal thoughts on being in business with relatives. “1) Your title may read Chairman, President or CEO, but your parents still see you as son or daughter. 2) When it comes to your child’s performance in the business, trust a non-family member’s judgment more than your own. 3) In the family you can march to a different drummer; in the business they want you on the beat. 4) Conversation starters: I always wondered why you and dad… 5) Don’t look for your business partnership to fill a hole in your relationship. It’s likely just to make the hole bigger.” A family business is a unique operation. I often wondered how one feels when control of the company is relinquished to the next generation. Pride? Regret? Relief?

TO THE RESCUE: Last issue I discussed the new Help Veterans Own Franchises Act, and now the U.S. Army Reserve has launched a partnership with Helmets to Hardhats, a nonprofit program that connects military service members with quality career opportunities in the building and construction trades. The joint venture will enable each organization to recruit highly-skilled employees, support military families and contribute to a stronger national economy. Like the Franchises Act, this venture also contributes to the flooring industry. If they pass on franchising, they could get into the home building business and bring more floors to market. What’s important here is the business community reaching out to help the veteran and reservist re-enter civilian life with opportunity and dignity.


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Date
7/20/2009 9:28:47 AM
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Transmitted: 4/1/2026 2:37:29 PM
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