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Asset reduction programs: Chopping versus pruning

  • September 2010
  • Number of views: 2500
  • Article rating: No rating

Dr. Al Bates
President, Profit Planning Group
Boulder, Colorado

“So this EASA member walks into a bank and asks for a loan.” Well, there’s no need to wait for the punch line as it is no laughing matter. In many cases, the credit available to members has all but dried up. Where money is available, banking require­ments are becoming more restrictive almost every day. The likelihood of things getting better any time soon is remote.

With enough patience and concert­ed effort, the cash challenge associated with disappearing lines of credit can be overcome by rethinking gross mar­gin and expense levels even during a recession. In fact, this will be the topic of the next Profit Improvement Report.  However, many distributors need cash now, not in six months. The conclusion is that inventory and accounts receiv­able reductions are in order.

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Getting The Most From Your Electric Motors

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EASA Technical Manual

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The EASA Technical Manual is the association's definitive and most complete publication. It's available FREE to members in an online format. Members can also download PDFs of the entire manual or individual sections.

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