In this space last month we contemplated predictive analytics, the idea that we can use the data collected in our businesses to predict future customer, supplier and employee behavior, and then use the data to get a jump on the competition. Another valuable process is to consider market and industry trends, and modify strategy to take advantage of them. Consider the following finishing industry trends and the opportunities they create in our markets:
CAPITAL SPENDING AND NEED FOR CAPACITY
A move that should come as welcome news to those working in coatings operations and their suppliers alike, the moratorium on capital asset investments finally has been lifted. Talk to just about anyone involved in manufacturing and he will tell you that economic activity in his sector is robust. Growing production volume brings with it a need for additional capacity, as well as investments in repairs and upgrades that were deferred during the extended downturn. The good news is that growing production volumes also bring the incremental cash flows necessary for such investments. Thus, finishers are beginning to open up their checkbooks and make investments in their equipment and operations.