Marketing in a Recession: How to Adapt & Win When Others Retreat

Marketing in a recession graphic with office buildings in the background.

 

Now’s not the time to hold back. Marketing in a recession can be the road to survival and long-term success. 

 

We’ve all lived through recessions before, and I think we can all agree that this one is... different – historical, even. 

 

What we’re looking at today is not a ‘typical’ recession. The combined forces of inflation, costs of living, and geopolitical change that few of us could have predicted is creating a level of uncertainty that feels unprecedented.  

 

In times like these, it’s important to focus on what you, as a business, can control. This includes managing how you communicate with your customers, clients, and partners. And one of the most important and effective ways to do this, regardless of the economic climate, is to market yourself. 

 

But investing in marketing is not the first instinct most people have in uncertain times. The knee-jerk reaction is the opposite: to cut back, often significantly. It feels like the safest course of action, and marketing often feels like an ‘easy’ thing to cut.  

If you’re thinking about it, odds are that your competitors are thinking the same. Right now, they’re having similar conversations around their boardroom table as you are at yours.  

 

Believe it or not, that’s a good thing – because when your competitors start to pull back, when they take to the sidelines, the net is wide open. 

 

And history has shown us, time and time again, across many different downturns, that those businesses that persist and stay in the game are the ones who come out stronger on the other side. 

 

A lot of what’s been said about marketing in a recession before might feel like a relic of a more stable past. But the foundations of effective marketing – human psychology and behaviour – aren’t something that changes overnight. 

 

This is why the case for marketing in a recession is a practical one. 

 

Marketing in a Recession Isn’t a Luxury, It’s a Strategy 

Taking a passive stance means losing valuable ground.  

 

While your competitors are focused on hunkering down, you can be building relationships, reinforcing trust, and positioning yourself for future growth. 

 

People still need goods and services. They still make purchasing decisions. And they still respond to businesses and brands that connect with them on an emotional level. 

 

The key is to adapt your approach by: 

 

  1. Adjusting to a longer sales cycle. Understand that customers are taking more time to make decisions. Reach out to them early in their journey and nurture them through the process.  

  2. Strengthening brand recognition. Reinforce your presence and build trust with customers who are seeking stability. A familiar brand offers a sense of security in uncertain times.  

  3. Sending the right message. Acknowledge your audience’s concerns and offer solutions. Show them you understand their challenges and are there to support them. 

 

We’ll explore each of these points in detail, providing practical strategies to help you navigate the current climate and emerge stronger on the other side. 

 

1. Surviving a Longer Sales Cycle 

Economic downturns naturally lead to more cautious consumer behaviour.  

 

People take longer to make purchasing decisions. They spend more time researching and comparing their options – and not just when it comes to pricing. Value and quality matter more than ever when consumers are stretching their budgets. 

 

Right now, we’re also seeing consumers pay close attention to country of origin and company ownership – a trend which applies to both business-to-business (B2B) and business-to-consumer (B2C) markets. 

 

The result of this shift in consumer behaviour is that sales cycles become longer and more drawn-out. This presents a challenge, of course, to businesses that are used to a much faster turnaround.  

 

Marketing, and particularly awareness advertising, is absolutely vital for reaching these cautious consumers early in their buying journey and nurturing them through the sales funnel. Investing in the awareness stage builds up a larger pool of prospects.  

 

Then, when those prospects are ready to buy, your brand is already at the top of their minds. 

 

These are starting points. The best strategies will always be those made for your specific business, customers, and circumstances. Adapt your approach accordingly.

 

  • Develop valuable, informative content. Create blog posts, articles, eBooks, videos, and other marketing collateral that address your audience’s concerns, answer their questions, and guide them through the decision-making process. You only have to invest in creating these once, and they will continue to provide dividends each time a new prospect uses them. 

 

  • Focus on value. When customers are hesitant to spend, it’s not only pricing or product features that matter, but value. Talk about the benefits of your product or service and how it solves their specific pain points, not just what it is, what it does, and what it costs. 

 

  • Optimize your website for SEO. You want to ensure that potential clients and customers can easily find you when they go searching for products and services like yours. The evergreen content mentioned in the point above can also be a great SEO asset if properly optimized. 

 

  • Use email marketing to nurture customer relationships. Once you have a prospect’s email address, it costs nothing to email them. As with evergreen content, an email nurture campaign is something you can create once, automate, and then use time and time again. 

 

  • Emphasize customer service. Provide exceptional customer service at every touchpoint, recognizing that potential customers and clients may need more time and more information. Avoid pressuring them and focus on building trust. Every interaction is an opportunity to strengthen your relationship and move the customer closer to a decision. 

 

2. Strengthening Brand Recognition 

Brand recognition matters more than ever during times of uncertainty. Your customers and partners are looking for stability. A familiar brand offers a sense of security and confidence.  

 

Consistent marketing and advertising reminds people you’re still here and here to stay. 

 

Now is the time to protect and preserve the brand ‘equity’ you’ve built and nurtured for years. You won’t lose it overnight, of course, because the good work you’ve done isn’t something people will simply forget.  

 

But the longer they go without hearing your name (and the more they hear from your competitors instead), the harder it will be to get going again when the economic pendulum swings back. 

 

Consider these strategies. Take the time to analyze your current brand perception and identify areas for improvement. 

 

  • Stay in touch. Don’t let your brand fade into the background. Maintain a consistent presence through regular communication across various channels: your website, social media, email, etc. You need to remind your audience that you’re still here, you’re still active, and you’re still committed to serving them. 

 

  • Be consistent in your branding. This includes your website, social media, marketing materials, and customer service interactions. Make sure that your logo, colours, fonts, and messaging are consistent and reflect who you are. This matters in any climate, but especially one where prospects are searching for stability. 

 

  • Get involved in your community. Sponsor the local events, support the charitable causes, and be present at the trade shows and industry events you would when times were good. Scale back if necessary, but don’t disappear. Goodwill is a difficult thing to regain once lost. 

 

  • Don’t underestimate the power of public relations. Right now, many media outlets are looking for business owners who are willing to discuss the changing business landscape or highlight their local bona fides. Media appearances, guest articles, blog posts, and press releases are great opportunities to stay visible and build credibility. 

 

3. Sending the Right Message 

It goes without saying that times like these test everybody, not just those running and operating a business. Your clients and customers are feeling it, too.  

 

The impact of inflation has been impossible to ignore for years, and now, the stress has been compounded by external factors. People are worried about their homes, their jobs, and their families. 

 

In uncertain times, customers gravitate towards brands that meet them where they are and speak to them.  

 

The key is to craft messages that reflect the times and describe how your products or services benefit them. Acknowledge their pain, but don’t dwell on it; instead, empower people and help them think of ways to be in control in a world where they feel out of control. 

 

In Canada, we are already seeing some businesses speak up and shift their messaging in a huge way. Those with strong ties to the country are actively promoting those ties in a way they hadn’t been six months ago. And in both Canada and the United States, we’re seeing businesses talk about their values – and changes to corporate policy that better reflect those values.  

 

While others hesitate, you can seize opportunities to innovate and adapt. Position your brand as a thought leader and a reliable partner. This is the time to showcase your resilience and commitment to your customers.  

 

But what about B2B? At times like these, it’s easy to assume that B2B buyers are purely driven by logic and data. But they’re not immune to the anxieties of economic uncertainty. They’re facing the same challenges as everyone else – rising costs, supply chain disruptions, and pressure to make the right decisions for their businesses. 

 

Businesses want to believe that their chosen solution will not only solve their immediate problems, but also contribute to their long-term success. They want to feel good about the companies they partner with, knowing they share the same values and can be trusted to deliver on their promises. Your messaging needs to acknowledge these feelings and offer reassurance. 

 

In uncertain economic times, your messaging needs to meet your audience where they are. It’s a balance between acknowledging the difficulties and offering solutions. 

 

Solutions attract those actively seeking them out. 

  • Don’t shy away from what’s going on. It’s no secret, and customers are feeling it whether you acknowledge it or not. When you do acknowledge your audience’s concerns and show that you are there to support them, that makes a connection. 

 

  • Then, focus on solutions. While acknowledging the challenge is important, don’t dwell on negativity. Shift the focus to solutions and how your products or services can help customers navigate the current climate. Highlight the value you offer and how you can make their lives easier or their businesses more successful. 

 

  • Reinforce your brand’s stability, reliability, and long-term commitment. This could involve highlighting your history, your growth over the years, your values, or even your customer service. 

 

  • Don’t be shy about your values. People want to do business with companies that share their values. Communicate these values clearly and authentically, and show how these values play out day-to-day – how you source your products ethically, the extra mile you go to do quality work, your commitments to sustainability, your amazing company culture, your patriotism, and so on.  

 

History Shows that Cutting Back is a Costly Mistake 

At this point, it’s safe to say there is no historical period that perfectly mirrors our current situation. We can draw comparisons to certain events, certain figures, certain policies and actions and reactions – but the combination of factors at play here is unprecedented. 

 

But, really, that’s the case with every recession. We’ve been through more than a few of them since the advent of ‘marketing’ as we know it, and no two have been close to being exactly alike. Different factors, different people, different outcomes. 

 

Yet there is still a clear pattern when it comes to the benefits and the risks of cutting back on marketing during a recession – whether it’s the Great Depression, the Great Recession, the COVID-19 pandemic, or anything in between: 

 

Businesses that stand firm will reap the benefits when the recession is over. 

 

The Recession that Proved Marketing Works (and What You Can Learn) 

Let’s travel back to 1981, shall we? 

 

Before the Great Recession, the 1981-1982 recession was the worst economic downturn the U.S. had seen since the Great Depression.  

 

Following a decade of rising inflation, high unemployment, and a stagnant economy, the Feds rolled out new monetary policies designed to aggressively curb inflation. As a result, businesses drastically cut capital expenditures and cancelled investments in new equipment, factories, and tech.  

 

Manufacturing industries, particularly those sensitive to interest rates (like auto manufacturers), were hit the hardest. 

 

By late 1982, unemployment had grown from 7.4% to a peak of nearly 11%. For auto workers, it hit 24%.  

 

Consumer spending hit the floor. 

 

Many businesses saw no choice but to cut back or even abandon their marketing and advertising entirely. It felt like common sense. Why advertise when it seems like no one’s buying?  

 

Like all downturns, this one didn’t last forever. By the summer of 1983, the recession was officially over. Output and spending were back to normal, pre-downturn levels.  

Here’s where things get interesting. 

 

A landmark study by McGraw-Hill Research, which analyzed 600 companies from 1980 to 1985, revealed an important insight: businesses that maintained or increased their advertising spend during that recessionary period saw significantly higher sales growth by 1985 (256% higher) than those that cut back. 

 

Even with spending at an all-time low and unemployment at an all-time high, investing in marketing paid off.  

 

While this research by McGraw-Hill is one of the most in-depth looks at marketing in a specific recession, we know this phenomenon isn’t unique to the 1981-82. We see it time and time again in examples across different downturns and in different industries, including: 

 

  • When COVID-19 forced people to stop travelling, VRBO and Airbnb responded in opposite ways. Airbnb scaled back its advertising, while VRBO increased its spending to $90.8 million. In the end, VRBO saw a 61% recovery in bookings while Airbnb’s bookings dipped by 15%. 

 

  • In the recession of the early 1990s, McDonald’s, then the biggest player in their industry, cut its advertising budget. Its sales declined by 28%. In the same period, Pizza Hut and Taco Bell both strengthened their advertising efforts and increased their sales by 61% and 40%, respectively. 

 

  • When the Great Depression hit, Post was the biggest cereal contender, and Kellogg’s was the up-and-comer. Post cut back on advertising. Kellogg’s doubled theirs. You can guess where this is going: Kellogg’s sales grew by 30%, and they leapfrogged Post as the industry leader. 

 

Maintaining visibility and brand presence during uncertain and challenging times put those businesses in a much stronger position when the pendulum swung again. And, as hard as it is to picture it during challenging times like these, the pendulum always swings back. 

 

Don’t Retreat, Adapt 

This is a tough time to be in business. The uncertainty of it all can feel overwhelming, especially with customers, partners, and a team all counting on you. But that is also precisely why now is not the time to retreat. 

 

History has shown time and again that those who maintain a strategic focus on marketing during downturns are the ones who emerge stronger. Take control of your narrative, connect with your audience, and show your resilience. The challenges are real, but so are the opportunities. 

 

REM Web Solutions is here to help you develop a marketing strategy that positions your business for long-term success. Reach out today to start the conversation

 

 

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The Role of a Good Benefits Advisor

Business advisor presenting energy cost and efficiency charts to a client.

 

Every business is different, with respect to what they do to generate value for their clients and shareholders. Some are incorporated, while others are not. Some manufacture products, and others provide services. Some employ highly educated professional people, while other companies hire unskilled workers. 

 

There are endless ways that businesses are designed to create value, but one thing remains constant…each business must attract the appropriate people to perform the work that gets results for the beneficiaries of the products and/or services that they deliver. 

 

Attracting and Retaining Talent 

We all know that good people in every walk of life are hard to find and sometimes, even harder to keep. Life changes and evolves constantly, and these changes affect how people perform.    

 

Managing the distractions that life delivers is not always easy, even for highly educated professionals. In our fast-paced society, we are constantly faced with changes, and not all of the changes are good news.     

 

Health is Key to Managing Change 

What I’m getting at is that maintaining good health, be it physical, mental or spiritual, is key to being able to deal properly with change. 

 

How is the current economy going to affect your business, your job, your family? The same question generally affects other changes that we are faced with: health issues, car maintenance, your roof that needs to be replaced, your kids who need help with education...the list is endless.    

 

All these changes that you come up against will deliver some level of stress. It’s up to you to find the best way to cope. Good health can provide many advantages for coping with the dynamics that come your way. Unchecked health concerns can lead to bigger problems. 

 

Employee Benefits Help Manage Costs and Stress 

Employee Benefits are a wonderful tool to help people deal with the issues and the rising cost of Health Care.    

 

Some companies provide a full suite of benefits, including retirement savings. Other companies provide very little in the form of benefits. No two companies are alike.   No two company sponsored benefits plans are alike.     

 

Most successful companies know that the more they care for their employees, the easier it is for their employees to care for the company they work with. 

 

My role as an Employee Benefits Advisor is to provide guidance that helps business owners provide what they feel is adequate coverage for their employees. This can be dramatically different for each company.     

 

One thing will never change… most people do not buy what they need or want; they buy what they can afford that best serves their needs. 

 

Business owners who take on the role of being a conscientious Corporate Leader know that most people need benefits. Benefits that are properly designed will help companies attract and maintain stronger employees. 

 

Choosing the Right Benefits Advisor 

My best advice is to make sure you are aligned with a Benefits Advisor that is focused on advising, not focused on selling.    

 

A good advisor is always working to help you grow your business, by aligning you with a cost-effective benefits solution that serves your employees’ needs, within your budget.    

 

A good long-lasting benefits solution is based on a strong platform backed by Risk Management strategies that protect your employees over the long term. 

 

To learn more about how Bauer Benefits helps our clients deliver “Better Benefits for Less Money”, you are welcome to plan a free consultation

 

 

Ross W. Bauer

[email protected]

https://bauerbenefits.com/

519-240-1290

 

       

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The Evolving Energy Environment: 5 Key Strategies for Smarter Energy Purchasing

Close-up view of solar panels reflecting the sky on a sunny day in a green field.

 

In today’s rapidly  changing energy landscape, purchasing energy isn’t just about finding the lowest commodity price anymore. 

 

Forward-thinking energy managers and purchasers are expanding their focus to include strategies that lower costs, increase energy efficiency, and reduce carbon emissions. 

 

Here are 5 essential areas to consider when optimizing your facility’s energy purchases: 

 

1. Conduct an Energy Audit 

An energy audit — often starting with a free walk-through — is a crucial first step toward improving your facility’s efficiency. A comprehensive audit will: 

 

  • Analyze current energy usage 

  • Highlight opportunities for energy savings and equipment upgrades. 

  • Prioritise projects based on your key factors such as cost, ROI, safety, and carbon reduction. 

 

Installing an Energy Metering and Monitoring System (EMIS) allows you to track real-time energy consumption, making it easier to spot inefficiencies. Many capital improvements can qualify for provincial and federal funding, helping to reduce out-of-pocket costs while delivering long-term savings. 

 

2. Implement Commodity Hedging 

Natural gas prices are forecasted to nearly double over the next two years. Since natural gas is a major input cost for electricity generation, electricity rates are also expected to rise. 

 

Facilities can mitigate these risks by: 

 

  • Purchasing energy supply through third-party suppliers or brokers. 

  • Locking in rates through hedging strategies, protecting against extreme market volatility caused by events like hurricanes or global disruptions. 

  • Choosing between fixed rates and spot market pricing options based on their risk tolerance and budget predictability needs. 

 

Hedging provides budget stability and protection against unexpected price spikes — crucial for long-term planning. 

 

3. Participate in Demand Response Programs 

Facilities can further optimize electricity costs through programs like: 

 

  • Demand Response Programs: Curtail electricity use during peak periods in exchange for financial incentives. 

  • Ontario’s Industrial Conservation Initiative (ICI): Reduce your Global Adjustment costs by cutting usage during Ontario’s five highest system peaks. 

 

To participate effectively, many facilities partner with peak advisory services that help predict when these peaks will occur. 

 

Other options to manage peak demands include installing on-site energy storage or backup generation systems, further reducing reliance on expensive grid power during critical periods. 

 

4. Explore Solar Power Opportunities 

Assessing the business case for solar energy has never been more compelling. New incentive programs are encouraging companies to install solar panels for:

 

  • Net Metering: Sell excess energy back to the grid. 

  • Load Displacement: Offset internal energy use directly. 

 

Solar installations not only reduce utility bills but also significantly lower a company's carbon footprint — helping to meet sustainability goals and prepare for a net zero future.

 

5. Build a Roadmap to Carbon Emissions Reduction 

Start with a Greenhouse Gas (GHG) Reduction Plan to benchmark and assess your current emissions. Key steps include: 

 

  • Implementing energy efficiency and conservation projects. 

  • Integrating renewable energy sources like solar and wind. 

  • Purchasing Qualified Carbon Offsets or Renewable Energy Certificates (RECs) for any remaining emissions. 

 

A clear roadmap to net zero helps align your facility with evolving regulatory requirements and strengthens your brand’s commitment to environmental responsibility. 

 

If any of these are of interest to you, please do not hesitate to reach out to Steve Sabean by phone or text at (519) 577-2362 or via email [email protected] 

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The Truth About Research, Development, and Innovation

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In today's hyper-competitive global market, the drive for growth and search for new innovative ideas, combined with increasing competitive pressures, have elevated Research, Development, and Innovation (RD&I) to one of primary strategic importance. 

 

However, it is often very difficult to remain focused on your RD&I objectives, as the preoccupation with immediate day-to-day operational issues often dominates your priorities. Because of their uncertain nature, it is often the RD&I initiatives that suffer most, perpetually being put on the back burner. 

 

To ensure the success of your RD&I initiatives, it is important to remove the uncertainty and understand:

 

 

The Truth About Research, Development, and Innovation

Research, Development, and Innovation often sounds like some grand program or large project. The reality, however, is that RD&I is scalable and can take the form of large well-funded collaborative projects or small budget activities that take up a portion of one person’s time and everything in between. 

 

 

The problem is that RD&I, at any scale, can be extremely parasitic on a corporation when the true costs and efforts are underestimated, or the project’s progress is stunted by unexpected results or inefficient development practices. 

 

Due to the uncertainty of outcome, RD&I project management certainly differs from conventional project management. However, it is still critical to have an appropriately detailed plan in place and to effectively control and co-ordinate the RD&I project’s activities to:

 

  • Improve your development efficiency and overall results
  • Reduce your development risk and costs
  • Maximize the output and ROI value of RD&I within your organization
  • Accelerate the timeline to commercialization of your product or services

 

 

The Importance of a Strategic RD&I Plan

Because of the evolutionary and agile nature of most RD&I, many organizations forgo the creation of a strategic development plan for fear that it will become irrelevant as the project evolves and inevitable changes are required.

 

THIS IS A MISTAKE.

 

The successful development of any new product, process or technology often hinges on establishing a solid RD&I plan. It should be structured to provide the clarity, agility, and conviction necessary to realize your development aspirations, and should consider the following 5 Step Process:

 

 
1. Establish RD&I Goals, Objectives, and Boundaries

  • Establish clear and measurable RD&I project goals and objectives. Be clear in distinguishing between the overall project goals and the technical objectives necessary to achieve them, and determine how you will know the project is progressing or has been successful. 
  • Establish the scope of the project. For example, are you developing a prototype, minimally viable product, full commercial product, etc.? Just as importantly, identify what is outside the scope of the project.
  • You will have limited resources, so it is crucial to keep them on track and deploy them in areas directly related to what you are trying to achieve. To monitor this, incorporate periodic project reviews to evaluate your progress.

 

2. Establish Activity Sequence, Dev Phases and Resource Planning 

  • An RD&I project plan should make it clear what needs to be done and by whom. You should also establish who is accountable and who will report to whom.
  • Establish development activities as clearly as possible, with estimates noted about the required resources, duration and sequence.
  • If applicable, segregate the project into Development Phases, identifying when the completion of a specific phase can lead to the initial commercialization of your product and/or services.
  • Be sure not to underestimate the magnitude of effort required by respecting the level of uncertainty and incorporating sufficient time for unexpected problem-solving. 

 

3. Establish an RD&I Tracking and Communication Plan

  • Determine how you will practically and consistently communicate with your development team and other stakeholders.
  • Determine how frequently this will happen.
  • Determine where and how RD&I activities and information will be recorded.

 

4. Establish Key Risks and Uncertainties

  • To the best of your ability, determine the potential risks and uncertainties you may encounter during development that may delay the project or stand in the way of success.
  • Alongside these, ascertain potential actions or solutions that may be implemented to mitigate these risks or resolve these uncertainties.
  • Create a “Risk Log” that can be reviewed and updated during project reviews.

 

5. Summarize Estimated Costs and Establish Funding Opportunities

  • Although it can be difficult during the early stages of planning, it is imperative to establish a reasonable cost base for your RD&I that reflects its true costs and efforts, recognizing that the path to the final solution will be met by several obstacles.
  • Once a reasonable cost base is established determine how you will fund your RD&I. 
    • Will it be funded internally? 
    • Will you seek investment? 
    • Will you seek government funding? 
    • Will it be part of a commercial job?
    • Will it be a combination of any or all the above?

 

 

How Can Transtech Research Help?

At Transtech Research Inc., we understand that Research, Development, and Innovation (RD&I) is foundational to bridging the gap from conceptualization to successful commercialization. Our primary mission is focused on providing innovators with a comprehensive suite of RD&I tools, resources, and collaborative services, all meticulously designed to help you mitigate the inherent challenges associated with RD&I, allowing you to meet your innovation goals while maintaining efficient resource allocation and financial stability.

 

 

Whether taking advantage of one or all of our “Value Hubs”, which includes our Idea Hub, Development Hub, Funding Hub and Community Hub, we can help clients:

 

  • Maximize the value and output of RD&I within their organization.
  • Improve current and future development efficiency with the capturing of intellectual property within TranstechWeb, our online development lifecycle management tool.  
  • Identify problems and develop cost-effective solutions. 
  • More successfully take advantage of government funding programs and incentives such as: SR&ED, FedDev, IRAP, O-AMP, etc.  
  • Accelerate the timeline to successful commercialization. 

 

 

 

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The Power of Continuous Improvement

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Continuous improvement is, well, continuous.


And often, the improvements with the biggest impact come from looking beyond the obvious, questioning assumptions, and seeking out external expertise when needed. 


The following case studies show how two Canadian companies embraced this philosophy to achieve remarkable results.

 

 

Case Study 1 – Savings in Unexpected Places

An aerospace parts manufacturer based in the GTA was doing well but, as always, was looking around the corner for what was coming next. A 40-year-old family run company, they had quietly built up a reputation for innovation and quality with their customer base. Management believed that continuous improvement isn’t just a catchphrase. It’s a mindset and an integral part of their culture.


So when they saw the surge in business during the peak C OVID era start to abate, they began to plan for potentially leaner times ahead. And one of their strategies was to re-evaluate all of their costs, including fixed costs.


That’s where ERA Group came in. Mario Jelic, a Strategic Partner and ERA Group (Expense Reduction Analysts) Consultant, helped them review a few basic costs many companies take for granted: w aste services (the blue bins behind the factory), janitorial, and uniforms.


Each of these cost centers is important to the business mission , but usually an afterthought. Collectively, they represented an annual spend that was less than 1% of the revenues. And besides their relatively minor cost, they quite frankly aren’t very ‘sexy’.


So why bother? Aren’t there more important things to do?


Not true. Management has always fervently believed in continuous improvement and cost minimization. With ERA’s help, the company was able to find savings of over $120,000 per annum in those three ‘boring’ cost centers.


Better yet, the service levels improved in all three, which indirectly led to better output company wide.

 

 

Case Study 2 – Freight Costs Under the Microscope

Another one of Mario’s clients, an Ontario-based manufacturer about an hour west of Toronto, also subscribed to the continuous improvement philosophy. They make residential elevators and ship them all over North America.


Management is hard-working and very smart, and they run a tight ship. But to be frank, they were missing out on an opportunity to minimize freight spend and optimize delivery schedules.


Like a lot of small and medium-sized firms, they didn’t have the resources or expertise in this area. They basically had three long-time incumbent carriers, and one employee manually called them and got quotes every time they needed to make a delivery.


With the help of ERA, they were able to save between 20% and 40% on their freight spend. That’s not an insignificant sum for a small growing company. Their freight spend in the most recent financial year was roughly $1/2 a million p.a.


Beyond that, they also were able to minimize the work required by their employees every week and also to significantly improve options for delivery. We introduced them to a transportation management system (TMS), which added a multitude of delivery options across the continent.  


Now, their freight management process is less expensive and as simple as the click of a few buttons.

 

 

External Expertise Makes the Difference

Small and medium sized businesses in Canada are facing numerous challenges today. From inflation to excessive regulations to ‘quiet quitting’ to fierce global competition, they’re in the fight of their lives. Every and any advantage helps.


In both examples cited above, a continuous improvement mentality by management, and an openness to looking for help from an outside party, led to lower fixed costs, increased financial flexibility and a competitive advantage.

 

 

 

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Please contact Ross Bauer for more information about the Strategic Partners.

Phone icon (519) 240-1290