As I was getting ready for work this morning I caught a story on the local news that got my blood pressure up! The beginning of the story was ominous enough, “another local plant falls victim to the slowing economy.” The reporter went on to say that Meadwestvaco is going to close a plant near Dayton. Although the company is using the backdrop of a slowing economy as a reason for the closure, the 316 jobs from the plant are being outsourced to another Meadwestvaco plant in Mexico. So at a time when we face a deepening financial crisis here at home, this U.S. based company is cutting workers and shipping their jobs outside our borders. I ask why the hell they are not cutting their workforce in Mexico and bringing those jobs back into this country when we need them?

Call it a lack of conscience, a lack of patriotism, a lack of class, or a lack of common sense, this action shows just how short-sighted these executives are. When are business executives going to realize that cutting jobs here at home just reduces demand here at home. Actions such as this help to push our economy further into a death spiral. Meadwestvaco may get a short-term gain on their income statement, but its actions will have a negative long-term impact.

I ask every executive who has made the decision to move American jobs out of this country, “Is this really worth it?” Just imagine if all the manufacturing jobs that have been shipped off to Mexico and China were still in the United States, perhaps we would not be suffering the crisis of demand we have today. All of those workers would still be consumers, but instead we get spiraling unemployment, economic contraction, and now government intervention. I am sure many of the executives who made the decision to outsource jobs are now complaining about the government’s proposed stimulus package. Well fellas, someone has got to pick up the slack, and it obviously is not going to be you!

There can be little doubt that the current economy is difficult! As we wake-up and start our day, many people have lost their jobs (more than 500,000 in January). Some families have lost their homes. Today we are all faced with the daunting task of pitching in to help right the ship that seems to have gone way off course.

Companies have taken to slashing payrolls lately as a short-term measure to control cost. Some of these organizations are cutting workers because of true economic hardships. They have found themselves in the position of needing to reduce their workforce simply to survive, they have no choice. Some businesses have taken to cutting workers not due to what is, but due to what might be. They are cutting out of fear. The fear that if they don’t do something now they will face hardships in the future. Finally they are some organizations who see the current downturn as an opportunity. They don’t need to make cuts to survive; however, the current climate gives them “cover” to get rid of poor performing divisions or locations with lackluster sales. I hope that we are nearing the end of this cycle of reductions, although no one can be sure.

The economy did contract in the fourth quarter, and many are feeling its effects; however it did not stop. We have a $14 trillion dollar economy that slowed 3%, it strikes me that there is still a great deal of commerce going on. Customers are still buying, albeit at a slower pace than in the past, but people are still buying. So before you bemoan our economic plight, it is important to ask yourself these questions about your business.

1) Do you have 100% market share? My guess is like most businesses you don’t, and if you don’t then you have an opportunity to grow your business in a tough environment. Just because the economy has slowed does not mean you should pull in your promotion and selling efforts, and wait until the storm passes. Now is the time for you to work harder to win new customers, and keep old customers. Don’t be defeated before you start!

2) Are you paying attention to cost? Make sure you understand where and why you are spending money in your business. Now is a great time to find deals on needed assets. Because of the economic mood you may find some vendors more apt to negotiate pricing and terms. Just make sure you understand your overall cost structure, and you are getting maximum utilization out of it.

3) What else can you do? Too many people are just waiting around for the next show to drop. If all of us do that, then I guarantee, the shoe will drop. If enough of us start working harder to grow our businesses, and focus on winning share, then perhaps we can start righting this ship together!