Are We There Yet?

Reading the headlines, it seems many think the recession is over or at least beginning to recover. Germany, France and Japan are "officially" out of the recession, but the U.S. is still lagging. I'm not an economist and never pretended to understand the basis for knowing what those frequently reported indices tell us, whether we are going down or up. But I can tell you whether or not MY business is going down or up, as I am sure you can. And I realize for many, it is hard to believe the recession is over, or almost over, but let's hope they are right. It reminds me of going on a trip with my kids when they were young and after just a few miles away from home, the question was, "Are we there yet?" I guess it depends on your journey – which paper you read, when and how YOU interpret things, and whether or not you see your business in a recovery mode.

We see several auto companies restarting idle lines – not fully, perhaps, but restarting nonetheless, although that may just be temporary with the impact of the CARS program. We still don't know the longer term fate of GM and Chrysler, but coming through the convoluted bankruptcy situation, let's hope they become healthy again. Some homebuilders are beginning to see new orders. Some areas are beginning to report an upturn in home sales, though admittedly from a lousy bottom. Foreclosures are continuing to increase in some areas, but, overall, the bottom appears to have been reached or is in sight. Banks and investment houses are beginning to show profits again, though there are still problems in some areas, and some are still being closed. There are mixed reactions (at this writing in mid August) to the export and import situation. Industrial production was up 1 percent in July, the first rise in nine months. We still are losing jobs, but slower than before. It seems the good news is that the bad news is not as bad.

Isn't it strange? We are still in a miserable situation, but feel a bit better as it seems to have stopped hemorrhaging. Like a terrible accident, we've gone to the emergency room and are receiving treatment. We are not well and have a painful recovery, but we have stabilized a bit and have stopped, or slowed the bleeding. And we feel better. It’s all relative, isn't it?

One thing I have seen in my 45-plus years in this industry is that the economy goes up and down on a fairly routine basis. I have lived through some difficult recessions, as have many of you. And I am confident things are and/or will improve. Are you ready? Are you preparing for the recovery? Many hunkered down in this difficult period – some to just ride things out, while others used the time to revise their business model, make changes, and get ready to participate more fully in the new economy. To be sure, some went under and some more will. But as things get better, it's time to come out of the trenches and move forward. We can expect others to grow stronger and even see others come into markets with new and innovative ideas and products.
 
A sign? I have had several calls over the last couple of weeks from folks who want to discuss consulting services to help them enter new markets or improve their position. In my experience, this usually precedes a recovery from recession. Company managers realize things might be getting better and they want to be prepared.

Regarding Techtextil North America this year in Las Vegas, the most often heard reason for not attending or exhibiting was a cutback on expenses to ride out the recession. Yet many forward-thinking companies were there, most reported it as a very positive experience, and many are profiting from the contacts they made. Were you there?

Are you ready for 2010? When we get the leading textile machinery folks, the sewn products equipment folks, the chemical standards folks, and the producers and users of high performance textiles together in one place, as we will in May 2010, it is going to be one great industry event. Opportunities will abound. If you don't plan on being there, you will be missing out on what promises to be a fantastic event for our industry. You want to come out of this, you want to grow, you want to find new opportunities, you want to learn what is happening and about things that will impact your business, you want to make new contacts, you want to…well, if you want to expand your horizons, then it is important to make those plans NOW to be at Textile and Sewn Products Industry Week – and of course, at Techtextil North America and it’s Symposium.