The stock market in 2016 is starting to look a lot like it did in 2008. Time to cut expenses?
As the market crash rapidly deteriorated business conditions in 2008, I was lucky to have a friend pull me aside and get me to pay attention to it.
Don't just cut your business expenses, he said. Get your entire company and family together and make them aware of how serious this is.
I did. Getting spending under control was a huge relief. Further, David Dourgarian, Tempworks president and now CEO, won a series of payroll funding and payroll processing deals that allowed us to make some key hires and roll out new software products while our competitors cocooned into defensive positions or sold out.
Well here we are again in a market that looks a lot like 2008. Time to cut again? I'm not convinced yet, but I can tell you my retirement portfolio doesn't look a whole lot better than the public staffing I watch.
My gut tells me yes watch expenses but keep an eye out for great hires at the same time. Competitors get sloppy handling layoffs and pay reductions when the heat is on.
I'm interested in what staffing industry leaders are seeing. One of the more persuasive voices over at Recruiters Who Actually Make Placements is Sandra Mccartt, President of Professional Search, Inc., who had this to say about why the economy may be crashing and what she is doing about it:
Sandra Mccartt [oil] supply has increased significantly with the abilities of the oil companies to extract shale oil and horizontal drilling from older wells. OPEC is indeed opening the spout to force the US shale oil companies out of business and it is working. Solar and wind do not create an abundance of sustainable jobs. Initially manufacture and installation but after wind goes online not that many. And if the wind doesn't blow you gots no power. We can look at the joys of Solyendra to see what happens to solar in the US. China can mfg. panels and wind equipment at a low enough cost to put US companies out of business. I fear we are about to "clean energy" ourselves right into another recession. Having been through a couple of these, what I am seeing is promoting me to cut exoenses and rathole cash. Hope I'm wrong but I sure don't like what I am hearing from a lot of clients, banks and what I see in the markets.
How about you? How are you or your company reacting?