Times are tough for everyone. For many in our industry, the impact of the current recession has been intensified by the explosive, pre-recession economic climate that preceded it. Less than a year ago we were all on a tear, spurred by record-high scrap revenues and ever increasing attention on data protection. The good times we enjoyed then forgave many mistakes, such as relying on short-term pricing strategies and market-driven growth.
Amid soft recycled material prices, slowing demand for new services and growing accounts receivables, it may seem a bit callus to characterize the current economic slowdown as being good for the industry. But, if it results in more sound business practices and sensible growth, it is probably not a bad thing. In fact, it is likely that a better industry awaits us on the other side, an industry made up of a stable field of competitors and a revived appreciation for the importance of sound sales activities, intelligent pricing strategies and appropriate industry qualifications.
Industry contraction in the near term is probably inevitable. It is not inevitable, however, that your firm be among those that will not make it. The key is to start now—with pricing that makes sense; with organized, dedicated sales; and with operations that are benchmarked against the best.
Bob Johnson is the executive director of the National Association for Information Destruction. He can be reached at exedir@naidonline.org.