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Dr. Jeremy Cripps brought some welcome news to area manufacturers at a recent Gilmore Jasion Mahler (GJM) Manufacturing & Distribution Financial Executive Roundtable event. That news: he sees no sign of recession now or in the next few years. Economists have been keeping close watch as there had been speculation toward the end of 2019 of a potential recession late in 2019 or perhaps in 2020.

Cripps, an accounting professor at University of Findlay, and avid economy watcher, was the featured speaker at GJM’s roundtable events in both Maumee & Findlay on January 23^rd. He says there are three key factors to consider when looking at the possibility of recession: job growth, consumer confidence and business confidence. He told attendees at both roundtable events that in his opinion none of those indicators suggests recession. He says non-farm job growth is steady, consumer confidence is healthy and he sees no big dip in business confidence.

While easing concerns about recession are welcome, any successful business owner knows they must always be on alert to a potential downturn in the economy and many other potential threats. Gilmore Jasion Mahler CPAs Bob Bobek and Wes Beham say threat of recession or not, there is plenty you can do right now to ensure the health of your business headed into 2020.

“First and foremost,” says GJM Assurance Partner Wes Beham, “Do what you can to improve your balance sheet. Look at your discretionary spending: What can you cut out? For example, dues and subscriptions, travel expenses and other costly commitments can really add up.”

Wes’ other recommendations include the following steps:

• Improve receivable collection efforts with timely and efficient invoicing
• Tightly control investments in new equipment
• Pay down debt

GJM’s Bob Bobek, like Wes, also spends a great deal of time advising clients how to protect their businesses from potential threats. Bobek says regardless of the state of the economy, you should never ignore business growth strategy.

“You need to fight for your market share,” says Bobek. “You need to be prepared for aggressive pricing. And don’t rely on your current customers for more sales. Remember, they’re watching their bottom line as well. Protect those customer relationships but add new customers too. I always say, ‘a business that isn’t growing is shrinking.’”

Bobek and Beham offered attendees other important strategies to safeguard their businesses headed into 2020. They include:

• Reduce raw material and finished good inventory levels
• Evaluate your supply chain
• Evaluate staffing flexibility
• Invest in new technologies with immediate returns
• Reduce Costs
• Engage your banker, continue to manage and grow this relationship
• Develop an acquisition strategy
• Save cash

Gilmore Jasion Mahler offers the Manufacturing & Distribution Financial Executive Roundtable events three times a year at both Maumee and Findlay locations. The gathering is designed for area manufacturing financial executives to come together and share best practices and hear from guest speakers on timely issues that impact their businesses. The next scheduled GJM Manufacturing & Distribution Financial Executive Roundtable event is April 23 and the topic will focus on logistics challenges. Any manufacturing financial executive who would like to attend or sign up to receive future roundtable invitations can email info@gjmltd.com. 

Wes Beham is a partner in the firm’s assurance and consulting area and has over 15 years of experience with Gilmore Jasion Mahler. In his time with the firm, Wes has provided audit advisory and services to a broad range of companies. He leads the firm’s Manufacturing Specialist Team and is a key member of the Construction & Real Estate Specialist Team. Wes has also worked extensively on mergers and acquisitions, and with publicly traded companies as a Sarbanes Oxley auditor and an Internal Auditor for those companies.

Bob Bobek is an assurance partner with over 35 years of public accounting experience who specializes in advising high growth entrepreneurial companies. Bob speaks to groups on topics including; developing key financial ratios and using them to manage your business, understanding and developing contract price estimates, internal control and fraud risks, developing an accounting system for a small organization, treasury management and the fiduciary responsibility of a board.   

Established in 1996, Gilmore Jasion Mahler, LTD (GJM) is the largest public accounting firm in Northwest Ohio, with offices in Maumee and Findlay. Locally owned, GJM offers cloud-based accounting and provides comprehensive services including assurance, business advisory, tax, risk advisory, healthcare management and outsourced accounting. The Firm’s professionals specialize in industries including construction & real estate, healthcare, manufacturing & distribution and utilities.