Companies! Command employees R & I

What is R& I?

R&I is a favorite catch phrase invented by the Business Guru Dr. Steven Covey. It stands for "resourcefulness and initiative." He commands his staff to focus on their R&I when the situation begins to unravel, or when a problem appears larger than life.

What is FUD?

One of my favorite acronyms for business leaders who are floundering is: FUD. It stands for "fear, uncertainty, and doubt." FUD immobilizes leaders. How can it be diagnosed? If a leader calls for a "prevent defense" it is a sure sign, in the best case,the leader is trying to buy time while a strategy is being devised. In the worst case, the leader is in a panic, trying to prevent chaos while wringing the hands.

It really is ugly out there

Being in the international area provides one with additional perspective on the current economic crunch. Major construction equipment producers have seen increases in inventory, reduced cash positions, lower orders.



This situation will last at least untill the Fall of 09.



Why?



All these "shovel-ready projects" , many of which must be rebid, are not so ready. Prior to the owner rebidding the project, many of the owners will redesign and re-spec the project. Old bids will be invalid. New bidders will need to be found in many cases. That process will take 6-9 months depending on the project.



And if they projects are ready then to start in the Fall of 09, then the Fall rains and snows will begin to slow up projects beginning in the north and northeast.



Not until Spring of 2010 could we see a response to the stimulus.

So what are the targets of construction equipment makers? The Middle East; China; and Indonesia.

What products will succeed? Not small rental items. Large equipment which are very efficient will be in strong demand. Large equipment with technological innovations will lead out.

The lesson? Go big or go home.