Preparing for the downturn

What should electrical and electronics parts manufacturers be doing to prepare themselves for a contraction in the business cycle? The Federal Reserve Board reported in mid-May that current economic activity is proceeding “at a somewhat slower pace” than earlier this year. The index of leading indicators has shown a dip, and a slight rise in unemployment. Most observers now say that we are in for some sort of a “correction” in the economic cycle. A correction means keener competition and pressure on prices and profits. A number of leading companies have prepared themselves by installing pay-for-performance wage systems (commonly called gainsharing), thereby attaining more efficient plant operations-at no extra cost