Manufacturers: Dare to Invest Now
The long-term outlook for the economy remains grim.
However, now is actually a good time for some companies to invest. If you have a good cash flow and little or no debt, you may want to take advantage of the downturn. Heres why:
There are a lot of vacancies in office and industrial space. Newer buildings and factories tend to be more energy efficient than older facilities. With so many vacancies, youre in a good position to negotiate sales or rental terms.
Businesses that are forced to shut down often sell their assets at auctions. Used manufacturing equipment is actually posted on sites such as e-Bay. You might be able to upgrade your existing equipment at a heavy discount.
A lot of skilled workers are unemployed. Instead of training, you might be able to hire workers with new skills.
Interest rates are low. Taking on debt is risky, but its certainly an optimum time to borrow if youve been putting off upgrades.