Adam Hill Describes How Small Companies Can Prepare for Economic Shift
Scarbrough Group President and COO Adam Hill contributed a column for the January edition of IBNewsmag. Titled, “Agility an Asset for SMEs as Economy Heads into Market Correction,” The column responds to predictions of an impending recession with a look at supply chain conditions and how smaller companies may fare in the months ahead.
“While the economy is certainly changing, key supply chain indicators show that we are more likely headed toward a post-pandemic correction than a full recession,” Hill states. “Small and medium-sized businesses are better suited for this economic adjustment compared to larger actors, toting inventory agility and flexibility.”
Hill points to import levels as evidence for his assessment. While volumes are down from 2020 and 2021, they have remained higher than those of 2019.
“This indicates that our economy may not be heading down into a trench but is more likely reverting to a mean,” Hill says. “Specifically, companies are attempting to correct overfilled inventories by reducing their orders overseas.”
While we may not be facing a true recession, Hill indicates that challenges still lie ahead. Small and medium-sized businesses are uniquely equipped to handle them.
“Small to medium-sized enterprises have an advantage over larger companies with their ability to stay nimble amid a shifting economic landscape. But it’s a double-edged sword: having agility allows for quick decision-making but can also lead to moving too fast. The key to thriving during this course correction is balancing inventory agility with a deliberate, focused strategy.”
Visit IBNewsmag to read the full column and view the January edition.
If your small to medium-sized business is seeking solutions for a changing economy, contact Scarbrough today.