As the stock market plummets from repercussions of the global oil crisis and ongoing restrictions from the coronavirus, many manufacturers are faced with reassessing their day-to-day operations. These stressors can turn into opportunity for companies who are willing to take a look at their options.
According to news in transportation, port traffic in large cities such as Los Angeles declined by 25 percent last month. Impacted by coronavirus restrictions, this has caused many companies to reevaluate their global outreach. Stateside-based companies should be investigating these potential reshoring efforts not only from the purchasing standpoint but also their own customer base.
With the rapidly changing oil market fluctuations, small and medium sized businesses are challenged to maintain control of how to handle the impact. Lower barrel prices may not benefit the reshoring efforts, but taking a look at how your company plots distribution can. Partnering with companies who can either stock fast-moving products or can assemble the product closer to your buyer allows companies flexibility of inventory while taking advantage of the lower transportation costs.
If you have good relationships with your carriers, start negotiating contracts for the 2020-21 season now. With the slowdown occurring now, there is a greater likelihood for rate increases in that next year.
In a previous article, we mentioned companies may want to evaluate the potential for new market opportunities. Numerous Pennsylvania organizations offer assistance to companies with researching new innovations, particularly in manufacturing, as well as funding streams for new equipment.
Pennsylvania also offers a Shared-Work program that allows employers to reduce work hours amongst a group of employees on a temporary basis. There are week-to-week eligibility requirements which are waived allowing for more flexibility. Contact the Shared-Work representative at 833-728-2367 for more information.
The status of business is tumultuous right now with changes coming by the minute. If you are feeling the stress of what steps to take right now, our Regional Directors are available to help. Don’t wait until it’s too late! Contact SEWN to schedule a consultation and take advantage of the free services we provide to help keep jobs and companies in Pennsylvania. We’re available for phone and video conferencing at your convenience.