The Industry Is Facing Headwinds - You Are a Supplier

 When a sector enters hard times the negative impacts can fan out to its supply chain. Actually those businesses which are contractors can get hit worse than the industry itself. They might have fewer resources to navigate those tricky currents.

So, with the multi-dimensional troubles overtaking the global auto industry, a supplier like Bosch has announced it will cut the workforce about 5,500 in the next few years. Bosch cites these reasons:

Lower auto sales

Overcapacity in factories versus the amount of sales

Stalled transition to the EV.

Of course, other kinds of contractors, ranging from tire manufacturers to advertising agencies, could also be set reeling.

A standard strategy is diversification: Don't just provide ABC or XYZ products or services. 

In 2008, law firm Paul Weiss, known to be the powerhouse litigator for Wall Street firms, made a strategic shift. That was to bring in star legal talent to also become a leader in transactional services. Initially, it launched those such as M&A and restructuring which were most in demand at the time. Later it developed the resources to jump on what markets, ranging from ESG to AI, were emerging. 

Dentons law firm branched out into advisory services, including public affairs. From the get-go, that took off. Some of those add-ons have become recognized brandnames in their own right.

Before the Private Equity niche soured financial firm Apollo acquired the rest of Athene to facilitate a shift into private credit. Then it went on from there. 

As content-creators became glut I began beefing up my credentials in two other fields. Three years ago I was able to lessen my dependence on the former. 

But diversification, of course, involves risk, be it to the bottom line or to the brand. Gulf Oil, later acquired by Chevron, had broadened its portfolio with Barnum & Bailey circus. That didn't go over well during the 1970s oil supply shocks.

The very diversification of internal-combustion auto manufacturers into E-vehicles, with the exception of Tesla, has been an expensive disaster, at least so far. If the Trump Administration kills tax credits for those the crisis will deepen.

In coaching I recommend creating multiple sources of income. No longer does that necessarily dilute the personal brand. However, it is smart to keep the streams of income separate when positioning and packaging the services or products.  

Life is hard. Business is even more difficult these days. Get answers – and relief. Jane Genova is a results-driven confidential intuitive coach, tarot reader and content-creator related to careers. Complimentary consultation (please text/phone 203-468-8579 or email janegenova374@gmail.com)