Economic slowdowns are a time to plan and prepare

Recessions are a portion of the regular business cycle that benefit some sectors of the economy – many of which are heavy equipment and capital investment heavy. Slowdowns provide a time when firms can focus on productivity, the quality of their product and strategies to better compete in the future. Larger companies can examine scale of operations and how they are managed. Private companies can also participate by allocating more of their capital reserves into their future prosperity by restructuring, innovating new products and stocking up on inventories to sell later. Alternatively, recessions are a good opportunity to invest in capital assets that will appreciate substantially in value, like manufacturing buildings and storage facilities, sometimes by taking advantage of low-interest stimulus loans. 

The energy, materials and industrials sectors lead recovery during economic expansion that follows recessionary periods. The need for raw materials, new construction and manufacturing goods boosts the materials and industrials sectors. With supplies and materials needing time to order and the advanced timing it takes to plan, design, engineer and manufacture steel building components, an economic slowdown gives executives and managers the time they need to get started so they’ll be fully ready to meet the increasing demands of early recovery. 

Successful companies take advantage of opportunities

During the last two recessions, government invested heavily into both public and private building projects, and we should reasonably expect the same again. However, Summit Steel Buildings’ strategic planning is not relying on government intervention. We have positioned our efforts to remain heavily involved on the commercial and industry sectors where we continue to see strong private investment into expanding infrastructure and increasing company capacity. Growing local companies and community groups are spending wisely to add storage buildings to their existing campuses, such as FCMP Outdoor outside London, Ontario or Alberni Power & Marine in B.C., and Covanta Environmental in Kitchener that’s built new waste processing facilities to meet the growth they’ve been experiencing for the last several years.

View a few of our past projects.

As the economy recovers, the demand for building projects continues to grow across the country. Smart managers and executives recognize the value of investing in appreciating assets like pre-engineered metal facilities, rather than risking their capital on inflation-prone or volatile market investments. For companies that haven't yet considered the benefits of pre-engineered metal facilities, any slowdown represents an opportune moment to contemplate and plan for the next phase of their company's future.

Take the time of slower activity to make long-term plans

While recessions may initially be viewed with concern, they present prospects for sectors like infrastructure investment and heavy equipment industries to recalibrate and prepare for future growth. By leveraging the time during economic slowdowns to invest wisely in appreciating assets, companies can position themselves for a stronger and more competitive future as the economy rebounds.

Contact Summit Steel Buildings at 877-417-8335 to discuss how cold-formed metal buildings can contribute to your operation's future success.

About the author

Frank Melo has a construction civil engineering technology and business background with over 25 years of experience as a business owner and contractor. He was born and educated in London, Ontario and now divides his time between projects primarily in Ontario and British Columbia. He can be contacted at Summit Steel Buildings at (778) 951-4766 or by email at frank.melo@summitsteelbuildings.com or through LinkedIn.