Page 62 - Summer 2024 EDM Today

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WITH
WITH
JOE BALLEK, MBA
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MANAGING EDM Today Magazine

A DOWNTURN

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– IT TAKES

TEAMWORK.

Are you ready for an
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economic downturn?

Look to your entire team
to come out on top.

Manufacturing in the United States is facing uncertain times. The ongoing supply chain impacts from COVID-19, the
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cost of capital, and geopolitical tensions worldwide combine to create a challenging environment for manufacturing.
Historically, in every economic downturn, some companies fail while others emerge stronger than before.
Our industry has experienced numerous economic cycles and will undoubtedly continue to do so in the foreseeable
future. However, we can learn from theseexperiences to better prepare for the challenges and opportunities that lie
ahead. One thing that has changed in recent years is the data collected during downturns, providing us with valuable
insights.
Economists and researchers who study data can help companies develop strategies to combat an economic
slowdown. An example of this can be seen in the research work done by Dr. Ranjay Gulati of Harvard University.
Using data from the U.S. Department of Labor and other sources, Gulati tracked recessions from the 1980s and

beyond. Of the companies studied, 17% filed for bankruptcy or were acquired. However, 9% of the companies
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grew significantly during the recession.
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