Helping Customers Through Difficult Times

A few of our large customers are struggling in the current difficult economy. We are using our customer business resource concepts to do all we can to help them. It is during these difficult time that being a true customer business resource shows its true value for OPSA and our customers. Because we ask and learn about their entire business, not just the portions our services touch directly, we are able to offer suggestions, referrals, and ideas. It is during tough times that real strong relationships are built.

There's no sugar coating it - this is a difficult time. We'll get through it, but it will take a while.

If you are interested in learning more about becoming a customer business resource, check out Jerry Stapleton's book From Vendor to Customer Resource. It embodies many concepts I learned and have honed during my career at Little Rapids and OPSA. I believe strongly that becoming a customer business resource is the best method for a sales team. I've seen it generate excellent returns and I've seen the alternatives generate lackluster results.

Have a great week!

China Claims Stimulus Will Not Harm Environment

An interesting story out of the AP today quotes a Chinese official comforting the world that the huge Chinese stimulus program will not be used for projects that are not environmentally sound. He claims several projects have already been rejected because of their negative environmental impact. Also, there is $30B US in the stimulus specifically for projects that help the environment.

The end of the article mentions some progress China has made in reducing pollution this year. The amount of sulfur dioxide, an air pollutant tied to acid rain, fell as did the amount of chemical oxygen, a measure of water pollution.

The amount of money the Chinese are spending on environmental clean-up is a huge opportunity for US firms. I've mentioned several times that environmental projects are a great fit for the US economy.

Also, one of my big problems with visiting China is seeing the pollution. It must get better, and I'm confident it will. Here's the article. Have a great weekend!

http://news.yahoo.com/s/ap/20090605/ap_on_re_as/as_china_environment_2

Communication Is the Key in Tough Times

One of our larger customers is really in trouble. Unfortunately they've taken to not responding to questions or providing information. This means we can't respond correctly to questions from the factories we manage for their products. This is absolutely the opposite tactic to take when times are tough.

US companies need to communicate even more often and thoroughly when things are difficult. The Chinese culture is very collective and the Chinese people will respond positively to honest communication about difficulties. With a long-term view it can be an opportunity to build your relationships with your Chinese suppliers.

I suggest supplementing e-mail communication with skype calls and even video calls. A handwritten note of thanks for support and partnership can also go a long way. Using multiple forms of communication will build rapport and trust.

Things overall with the economy are improving and better times lie ahead. Build relationships now when things are difficult so you and your partners can react quickly to the opportunities the improved economy of the near future will bring.

June Starts with Upbeat News

There is data out today that shows manufacturing activity in China grew in May. Two different purchasing managers' indexes were above 50 which means growth in activity. This is good news for the global economy as China appears to be coming out of the recession which will eventually mean most of the rest of the world will as well. The stimulus program in China is being touted as having an impact on this growth.

The global stock exchanges certainly think we are moving out of recession. The Hong Kong market was up 4% overnight and the Dow is up significantly today despite GM's bankruptcy filing.

I believe we will look back on this recession as a very difficult time, but a time that set the stage for further growth and prosperity long-term. Here's a link to a Newsweek article on the above data. Have a great Monday afternoon!

http://www.businessweek.com/ap/financialnews/D98HKJQG0.htm

Two Great Articles in Forbes about US Manufacturing Strength

There are two great articles in Forbes online today on the strength of US manufacturing. I've mentioned before that I feel a resurgence of American manufacturing coming as we move out of this recession driven by several factors.

The first article describes the transformation of tape manufacturer TaraTape. It's a great example of a manufacturer adjusting based on the opportunities and threats facing it. It's a great story. Hats off to TaraTape and continued success.

http://www.forbes.com/2009/05/27/taratape-manufacturing-china-business-rivoli.html

The second article is by former Michigan Governor, and current President of the National Association of Manufacturers, John Engler. He highlights some of the strengths of US manufacturing and also the challenges. He briefly describes three companies/factory locations that adjusted to their opportunities and threats and are now thriving. This is another good read.

http://www.forbes.com/2009/05/27/john-engler-manufacturing-business-america.html

Even at OPSA we are moving to incorporate more US manufacturing and assembly into our service offering. It feels right and it's the right thing for our customers and our business. I'm looking forward to this phase of our transformation.

A Contrast in Directions

There is an interesting contrast in two articles from today's China Daily. The first one describes how the Chinese government is pushing to privatize more industries including oil, power generation, and railways to "boost efficiency". The second article describes how the US government will soon be taking a majority ownership stake in GM.

Who would have thought twenty five years ago that China would be privatizing this quickly while the US government took majority stakes in large banks and auto companies. What a change.

I don't have alternative ideas for the Obama administration that I'd like to throw out to solve the GM or banking situations. I do know that they need to have an exit plan just like any investor, and I hope that exit plan has a short horizon. Government ownership of industry has not shown to be a benefit to citizens or economies throughout history.

These sure are interesting times. Here are links to the two articles:

http://www.chinadaily.com.cn/china/2009-05/27/content_7948433.htm

http://www.chinadaily.com.cn/world/2009-05/27/content_7948681.htm

Memorial Day Remembrances

Memorial Day weekend is upon us. This is one of my favorite holidays of the year. Not only is it the traditional start of summer, but it's a very meaningful holiday for me. My father was a Air Force veteran, my father-in-law and his brother were both Army veterans who fought in WWII, and my partner Dan Cook and his wife are both Navy veterans. I sometimes wonder how my life might be different if I had entered the military either before or after college. I do strive to serve our country and community in very significant ways, but it still doesn't match the service and commitment required of those who join the military.

I am a bit of a history buff and hold in very high regard those who have sacrificed for our country by committing to military service. My family enjoys the lifestyle we have in this country in large part due to the service and sacrifice of millions of veterans. Thank you so very much for your service.

Our work in China relates in a small way to the security of the USA. China and the USA are the two main powers in the world right now. By fostering business relationships and cultural understanding, our two countries can work together to make the world a safer and better place. In my small way I'm working to advance this cause.

So, enjoy the holiday weekend. Please take time to fly Old Glory and reflect on the sacrifice of those who've served in the military, especially those who've died or been wounded in that service. I will do so several times this weekend and will be humbled when I do.