The unclear economic outlook has made many distributors leery of investing in their businesses, but focusing too much on fear can prevent growth and heighten the risk of disintermediation, according to industry executives in Don’t Be Frozen by Fear.
Many distributors are waiting for a clear sign – or even a hint – of what is to come before making any major business decisions or investments. Unfortunately, the current signals aren't clear and waiting too long could lead to a missed opportunity, according to Mike Marks, principal for Indian River Consulting Group.
Customers are changing, which means distributors must also change in order to grow with the market and not get left behind, he says.
In this new competitive environment, customers seem more willing to exercise their “out clauses” if a distributor doesn’t meet their demands 100 percent of the time, says Bill Moore, president of Industrial Profit Strategies LLC.
“Both buyers and sellers need to sharpen their skills and their decision-making processes in order to survive,” he says.
Read more about overcoming the challenges of uncertainty in Don’t Be Frozen by Fear.
