Recession – How Will You React?
According to an article posted on the American Metal Market website, “five steel mills in Changshu city, in China’s Jiangsu province, have declared bankruptcy as a result of the current market downturn.” Just another sign that the current economic crisis in the US is being felt all over the world. The recession is real but it is up to each of us to decide if we are going to just accept it and let it roll over us or if we are going to find opportunity in it.
There will be many who choose to cut every possible cost so as to preserve cash and shore up profits. Those who do, will make the depth of the recession become a self-fulfilling prophecy for their firms. Those companies look to long-term results and work creatively and smart will find hidden opportunities to increase their market share.
October 17th, 2008 at 12:15 pm
This story actually gives a realistic view of how the country of China is functioning. These steel mills were operating at an inefficient level of operation. They probably had ancient equipment, poor safety standards, and cash flow issues. Up until this past year the government was subsidizing the steel somehow so it could be exported cheaply. Running close to the operating costs it only took a small downturn to sink them. In a capitalistic society, the economic downturns shake out the poorly run operations and leave the good companies stronger in the end. Recessions come and go, and the strong survive. If more steel mills in China and elsewhere go under, the global climate for the steel and recycling industry will be better for the remaining entities. Pacific Steel & Recycling is strong and will weather this storm and come out better than some.