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So, the economy has hit the skids and your sales are probably down; maybe even way down. Add that to all the bad news floating around and right now it’s tempting to dig a deep trench around your business and stay holed up.

Good idea … if you want to get buried by the competition when things turn around. Instead, consider these troubling times a great opportunity to solidify your future.

Find a cheap deal on another company

For those looking to grow quickly, many businesses on the selling block right now are going at bargain prices, says David Velie, managing partner of Cincinnati, Ohio-based Amend Consulting/Techsolve. As part of its services, Amend advises companies on acquisitions and does due diligence work.

“You’ve got an opportunity to take advantage of a market for companies that aren’t doing very well right now,” Velie said. “It’s similar to the people who are buying up the bankruptcy homes; you hate it for the people who went bankrupt but it’s a decent business proposition for those who are buying.”

Benefits of an acquisition range from being able to cut costs because of duplication - maybe in management or facilities - to getting access to similar products and/or markets you’re not already exposed to. For example, metal fabricators might find a good fit by purchasing a company that does metal assembly work.

“What I’m seeing is that the really good companies are doing some acquisitions, but the companies that are just doing okay are afraid to spend the money now,” Velie said. “(Making a buy) is definitely part of a long-range vision as opposed to eyeing what’s going to happen in the next six to nine months.”

Now is the time to build

Will having a new facility or some extra space be the ticket to your success during the recovery?

Then now is the time to take advantage of the aggressive pricing in the commercial construction market, says Beth Naber with Cincinnati, Ohio-based BASCON, Inc., which specializes in design, construction and construction management of industrial, commercial and aviation facilities.

“There are some areas in the U.S. that presently are not feeling the impact of the market, but in the majority of the markets we are seeing competitive bidding with the sub-contractors,” Naber said.

Vendors are making it easier to invest in new technology

One of the Catch-22’s for companies is that when business is slow, they think they can’t afford to invest in tech upgrades, says Todd Majeski, president of 3DVision. And when orders are flowing steadily – usually the worst time to implement changes – well that’s when owners start looking for ways to do the job faster.

These days, 3DVision - which sells and supports software for the design and manufacturing industries - is running variety of promotions such as free training and deferred payments to stimulate business and change the perception that now isn’t the time to invest.

“I think a lot of companies are afraid to spend money because they don’t know where their next customer is coming from,” Majeski said. “A lot of people don’t know about these types of options.”

Deferred terms, for example, may give companies 90 days before they have to make their first payment on a new product. Meanwhile, workers get up to speed during slow times and will be ready to produce when things turn around. “The promotions our suppliers are helping us offer give us flexibility to find the right buyers,” Majeski said.

Good deals abound on used equipment

Think upgrades on the shop floor will put your business in better shape to compete when orders pick back up? Well, a glut of used products makes this the perfect time to go bargain shopping.

“The availability of good stuff is plentiful, so it isn’t like people have to go out and hunt every day for something they need,” said Scott Yoder, president of G 2000 Inc., a Toledo, Ohio-based industrial auction, appraisal and services company. “The good stuff that’s coming available through the closure of these plants is giving people an opportunity to upgrade at a very economical price.”

In many cases, Yoder said used machine buyers are saving 20 to 40 percent over what they would have paid just five years ago.

Look for closed die-cast shops to continue dumping product on the market. And even though the market for used stamping presses from auto suppliers went through a weed-out period – over several years many were scrapped - they could become plentiful again if a new wave of companies go out of business.

Years ago, Yoder’s father and three uncles started Yoder Machinery, which he says is the largest used stocking machine tool dealer in the country. His cousins still run that business and recently have been able to buy middle-of-the-road equipment “very, very cheap,” Yoder said, so they are passing those savings on to buyers.

“It’s just a tremendous opportunity right now out there for people to get good deals.”

Sources for this article include:

• Amend Consulting/Techsolve http://www.amendllc.com

• 3DVision http://www.3dvision.com/

• G 2000 Inc. http://www.g2000inc.com/

• BASCON Inc. http://www.basconinc.com/

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