The Consultant - Q1 2009 - (Page 40) PERSPECTIVES united states funded development.” Two areas of potential strength in noncommercial foodservices Clevenger is looking toward are corrections and healthcare. “Prisons typically need to expand their capacities during poor economic times,” he pointed out. “Healthcare is driven by demographics and, as our population continues to age, more U.S. citizens will need medical services. The question that worries me the most is, if states and municipalities can’t pass new bond issues during the recession, where will the money for these institutions come from? One potential answer to Clevenger’s financing question is future Federal stimulus packages, which he believes may create opportunities for foodservice design consultants in the military and government market sectors. Yet, the need for these stimuli to inject hundreds of billions of dollars into an increasingly faltering national economy speaks of the depth and scope of the current financial crisis. “Our economic policies over the past 20 years have led to a series of ‘boom and bust’ cycles, which has ended with the Federal government owning much of our banking system and the decimation of the American middle class,” Clevenger remarked. To deal with these straitening circumstances, Clevenger has made several pro-active changes in his firm’s operations. “While we’re not laying off anyone, yet, we’re also tightening our belts by freezing hiring and eliminating raises for our existing staff,” he noted. “As I spend more time reviewing our A/R and project book, the trends I’m seeing are making me increasingly cautious. I also realize that we’re going to have to sharpen our pencils and make our proposals more competitive if we expect to retain our share of available projects.” MARKET Predictions are that noncommercial operations will do best in the months to come, but even their budgets for new equipment are being shaved in an attempt to contain costs. INTERNATIONAL Looking ahead into 2009, Clevenger projects that revenue at his Puyallup firm will decline between 20% and 30%, compared to 2008, and admitted that layoffs are a real possibility. “One key to surviving a downturn of this magnitude is diversification of your client base across as many market sectors as possible,” he advised. “The problem is that is very difficult to do when there is a dearth of jobs.” He also foresees “turmoil throughout the E&S distribution channel” in ’09, as equipment manufacturers continue to seek more acquisitions and consolidations occur in greater numbers among dealers and rep firms. “This is really an unprecedented situation, one complicated by the transition of administrations in Washington, and consultants have to realize that the same globalizing trend that created international market opportunities for us is also spreading risk and contractions around the world.” “I have to admit that reports on current conditions appear very dispiriting, but I continue to believe that good new business is still to be had if we’re willing to work harder and smarter during what I expect to be an industry-wide down year in 2009,” related Mark Pumphret, VP of Sales & Marketing for Middleby Corp.’s Blodgett, Pitco and Magic Kitch’n companies. “We certainly seem to have brought this economic crisis on our own society through unsustainable greed in the financial and housing sectors, and the unchecked proliferation of derivatives during the past eight to 10 years.” Pumphret added that culpability for the current economic situation can be laid at the door of many sorts of individuals, including “unqualified and self-delusional” home buyers, “irresponsible” lenders and “overly lax” regulators. The best way to restore the U.S. economy, he believes, is to “ensure that the Federal government does everything it can to stabilize our banking system and free-up the rozen credit markets for qualified borrowers. Right now,” he added, “even good, solvent busi- 40 theconsultant
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