For months now I have been advocating that now is not the time to stop planning strategically, conduct research, or decrease advertising. In fact, I have even stated on several occasions that those companies who continue to progress, will be the market leaders once the recession ends.
I am reminded of a study McGraw-Hill conducted during the last major recession (1980-1985. The study indicated that those companies who continued to advertise aggressively experienced a 256% increase in sales. That is significant.
Those companies that decreased advertising during that same period found that not only did sales drop dramatically, they had to work 2.5 times as hard and as fast once the economy improved, just to get back to where they were before the economic downturn.
In fact, when presence in the marketplace is decreased for 2 years, 40% of the targets don't even know you exist.
Tuesday, May 19, 2009
Sunday, May 3, 2009
BIO AND NANOTECHNOLOGY – OUT OF BUSINESS
There are many who believe that bio- and nanotechnology are likely to be two of the largest industries to generate jobs, revenue and growth over the many years to come. Unfortunately, the U.S. and some state governments have been opposed to much of this (gene and embryo) research which has prompted many firms in this industry to migrate to other countries to conduct is research and development (R&D).
This week it was announced that much of the R&D efforts are struggling financially as it takes years of research and billions of dollars in funding before a product is often brought to market. Media reports indicate that 100 or more bio- and/or nanotechnology firms could go out of business this year due to the financial crisis.
One of my concerns regarding the stimulus package has been the fact that the initiative lacks a major focus on the jobs, the skills, the technology and the industries that are likely to be world leaders for the next 25 to 50 years. Allowing over 100 bio- and nanotechnology firms (companies that might be working on a cure for cancer) to go out of business while financial firms and car companies receive billions in financial assistance illustrates a lack of strategic focus and planning on the part of the United States.
Research and development incentives should be promoted. Venture Capital firms should be given tax breaks and incentives for participation in bio- and nanotechnology research. Colleges and universities should receive funding to help prepare students for these future jobs. And bio- and nanotechnology research should be supported and encouraged in the incubators throughout the United States.
This week it was announced that much of the R&D efforts are struggling financially as it takes years of research and billions of dollars in funding before a product is often brought to market. Media reports indicate that 100 or more bio- and/or nanotechnology firms could go out of business this year due to the financial crisis.
One of my concerns regarding the stimulus package has been the fact that the initiative lacks a major focus on the jobs, the skills, the technology and the industries that are likely to be world leaders for the next 25 to 50 years. Allowing over 100 bio- and nanotechnology firms (companies that might be working on a cure for cancer) to go out of business while financial firms and car companies receive billions in financial assistance illustrates a lack of strategic focus and planning on the part of the United States.
Research and development incentives should be promoted. Venture Capital firms should be given tax breaks and incentives for participation in bio- and nanotechnology research. Colleges and universities should receive funding to help prepare students for these future jobs. And bio- and nanotechnology research should be supported and encouraged in the incubators throughout the United States.
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