Manufacturing Still Slow, But Solution Providers Plan For Growth

While it's true that U.S. factory activity slowed less sharply in January, the sector is still under pressure amid the biggest recession in decades, according to reports. Indeed, the category of Computers and Electronic Products was one of 16 reporting continued decline last month. The segments reporting growth in January were textile mills and petroleum and coal products. The number of new orders in January was still decreasing, just not as much as in the prior month. Employment continued to decline at the same rate as in December.

And yet, according to research by Everything Channel, 63 percent of solution providers said they see growth of better than four percent during the next 12 months. Nearly half -- 49 percent -- will expand regionally and 43 percent anticipate acquiring another business. A downturn, at least for some, means new opportunities.

"There is no better time to think about growth than during a downturn," wrote Dan DiSano, CEO of Axispoint (2008 VARBusiness 500 rank 481) in his recent blog. "That's when the future winners make changes, make investments, place bets and strengthen their position in ways that will allow them to leapfrog the competition when the economy turns."

That means a traditional strategy of hunkering down and waiting for the worst to be over is unlikely to be productive for companies looking to grow pretty substantially in 2009. Building the customer base and establishing a trusted advisor relationship is more in tune with success.

Targeting new markets with existing expertise is a primary go-to market strategy for 39 percent of VARs responding to the Everything Channel Growth study; in fact, 77 percent of participants said finding new business was one of the most critical factors in expanding business.

As the economy lurches through the next several months, solution providers should take stock of economic indicators and craft solutions that offer current and potential customers technological assistance to these challenges. Those that do are more likely to come out ahead at the end of the ride than those who are just hanging on.