Don't Downsize-l nnovate

We do not have to move far from our TV sets or newspapers to see and read the news of doom and gloom. As the business world announces layoff after layoff as well as falling revenues and profits, the words "downsizing" and "restructuring" have reared their ugly heads for the first time in a number of years.

In our niche, as my colleagues and I call around, we find many companies that are doing well. We should be curious why some companies make it in both good and bad times, and why others-perhaps your own-struggle or simply do not make it.

As one who has handled a number of turnarounds, I have seen the often disastrous results of downsizing and cost cutting. It is often a slow road to oblivion. Downsizing typically does not work and strips the company of much of its talent and its ability to function. If competition downsizes with you, if your competitor matches your new lower prices and achieves your new lower costs, what have you achieved? Lower prices, lower revenues, lower profits and a demoralized company! At the end of the day, you're still left without a competitive advantage.

I have found after many years that success is innovation, a constant review of the business model, and a pinpoint focus on the market. I have found that in most companies not even the basics are covered well. It is no longer enough to provide "good" customer service. In your own company, do you truly look to see what the industry leaders are doing and how they are constantly evolving? Have you ever dispassion-

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ately tried to get feedback from both current customers and past customers? Are you spending more time selling to the unprofitable customers than the profitable ones? Have you retooled your plant for maximum efficiency? Have you had a constant flow of new products or value-add services? Have you developed a customer-centric culture throughout your organization? Have you formed effective, consistent business policies and enforced them? Have you used multiple marketing channels to effectively keep your company in front of present customers and potential new customers? Have you ever asked what percentage of your top five customers' business you are, and how vulnerable you are to lose that business? Or how much opportunity you have to increase that business? Remember, it costs 20 times as much to find a new customer than to grow a current customer.

Every avenue must be explored to find ways to differentiate your company in a very crowded marketplace. Today's business world is not for the faint of heart. Taking positive steps to retool and remold your company takes courage and guts, especially in a difficult market.

However, change will be readily accepted by your whole organization at the same time your competition is worrying about their downsizing. So, do not downsize, innovate. Spend your energy and every dollar possible in adding new products and processes, and improving communications to customers and prospects, and become the leaders of tomorrow.

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Canadian Softwood lmports Hit With 19.3o/o Duty

The Commerce Department has preliminarily placed a record 19.37o tariff on Canadian lumber imports that is both effective immediately and retroactive to all shipments since midMay.

Final rulings on the countervailing duty are due from the Commerce Department in late October and from the U. S. International Trade Commission in early December. In addition, Canada also may face a penalty of up to 38Vo for allegedly dumping tons of low-priced, subsidized wood into the U.S. in the months following expiration of the five-year Softwood Lumber Agreement. The Commerce Depart- ment will issue its preliminary ruling on the anti-dumping claim Sept. 24.

For Canadian producers and their allies, possibly the most stinging aspect of the preliminary ruling was that the sanction be retroactive 90 days. The Commerce Department said the penalty was triggered due to a seasonally unadjusted 3l7o surge in Canadian imports from first quarter 2001 to second quarter 2001.

"I think they're using fuzzy math over at Commerce," said Gary Donnelly, president of the National Lumber and Buildins Material Dealers

Association. "Commerce released its own numbers on July 27 showing the difference in imports from Canada in April 2001 vs. April 2000 to be only I l7o"-less than the l5%o increase required to trigger a special circumstances action by the agency.

NLBMDA argued that the department should have compared year-toyear second quarters. "Clearly," Donnelly said, "there is always an increase in imports between the first and second quarters of the same year-the building season for most of the United States doesn't start until April!"

NEW BUILDING: Joine/s Discount Building Supply's new Carthage, Ms., facility is under construction.

Mississippi Retailer To Move

Joiner's Discount Building Supply, Carthage, Ms., is building a new store across from its main location in an effort to expand and consolidate two locations.

Owner Dale Joiner stated that crowding was the main factor for the move: "You want to know why I'm moving? Just come over and check out the aisles."

The new facility, with an overall increase of 21 ,500 sq. ft., will feature a 15,000-sq. ft. rental showroom and a floor covering department.

The expanded rental department will feature home use, do-it-yourself equipment such as pressure washers and lawn mowers, although Joiner hopes to include commercial rentals at a future time.

Joiner bought the main store in 1986, which has housed building supply stores since the mid-1960s. In 1999 Joiner bought out Carthage Building Supply and used it for his rental and floor covering department.

The new store is expected to be opened by mid-September. Joiner said that the two current locations will be open right up until the final move.