Evidence that the recovery is available, but that it must be sought

I’ll cite three recent New York Times articles… which both fuel a sense of optimism and stress the need for companies to pursue an economic recovery, rather than wait for it to arrive.

This January 4 story about good progress in the manufacturing sector warns that factory-floor employment is still a bit fragile. (Companies could simply be placing orders to restock inventories that had taken two years to grow lean or diminished.)

This story from January 7 indicates that the Grinch did not steal the holiday season; consumers held-out until the last moment, hoping to capture steep discounts similar to those of 2008. But with better inventory management this year, many retailers were able to protect margins and still generate sales. (Bottom line: Consumers spent more than anticipated during the holidays, and more than they spent in the same period in 2008.)

The jobs report released this morning warns that while companies are firing less, they are still not hiring more. We’re in much better shape (in terms of employment) than a year ago, but the road back, in terms of employment, could be a little longer than anyone wants, and hold a few bumps and curves.

Implications: Just as the Great Recession was, in many ways, unlike any recession before it… the economic recovery that follows it may look nothing like we’ve seen before. I have said before—and I am increasingly convinced—that this recovery will not be an equal-opportunity event. Some regions, categories and companies will recover faster than others.

Waiting for the recovery to happen is a bad idea. The more logical approach is to reconsider who your most valuable target customers are, how and why they buy (determine the real benefits they seek when they seek your product or service), and how you can be seen as the best option against the most critical purchasing criteria.

Good things come to those who wait. They come faster to those who grab.

Mike Anderson