Opinion: surviving the coming downturn in contracting.One of the benefits of getting old and working in the same industry for over 37 years is that you see the recurrences of events. The simple fact is our involvement in Iraq Iraq or Irak (both: ēräk`, ĭrăk`), officially Republic of Iraq, republic (2005 est. pop. 26,075,000), 167,924 sq mi (434,924 sq km), SW Asia. is going to decrease and therefore the spending will decrease. Our involvement in Afghanistan will increase, but it will not off-set the drop in Iraq spending. A new administration will have different priorities. Since the Democrats won both Congress and the presidency, we will have wholesale priority changes.
Couple all this with our current financial crisis and an already huge deficit, and government contracting is going to shrink shrink Vox populi noun A psychiatrist over the next few years. We have seen this happen before. Now is the time to check your company's financial condition and prepare to weather the downturn Downturn
The transition point between a rising, expanding economy to a falling, contracting one.
A decline in security prices or economic activity following a period of rising or stable prices or activity. . I can guarantee you that some of you are working for companies that will be going out of business over the next couple of years.
There are two things your company can do to ensure its survival and maybe even enable it to continue to grow. First, you need to make sure your financial house is in order. Your spending has to be under control and, most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent"
above all, most especially , plans must be in place to ensure that your financial obligations can be down-sized along with your revenue. One of the most important of these is property leases. If you lose a contract, can you get out of the lease?
That was the doom and gloom doom and gloom
Gloom and doom.
doom-and-gloom adj. . In major downturns we have had clients not only survive but also grow successfully. The companies who do their homework and preposition preposition, in English, the part of speech embracing a small number of words used before nouns and pronouns to connect them to the preceding material, e.g., of, in, and about. themselves on upcoming procurements will continue to have higher probabilities of winning the contracts and the work. If you are going to continue winning those task orders and contracts, you are going to have to conduct business development better than your competitors. In downturns the competition only gets harder and companies work harder to win, because there are going to be fewer opportunities. You are also going to see companies who you do not normally compete with show up in your market space. You are going to see more large companies going after smaller contracts.
It is often said that the federal government marketplace is recession-proof, and in many ways that is true. That does not mean it is untouched by recession, however. The federal marketplace for contractors is very sensitive to changes in government spending Government spending or government expenditure consists of government purchases, which can be financed by seigniorage, taxes, or government borrowing. It is considered to be one of the major components of gross domestic product. priorities. That means the DOD (1) (Dial On Demand) A feature that allows a device to automatically dial a telephone number. For example, an ISDN router with dial on demand will automatically dial up the ISP when it senses IP traffic destined for the Internet. budget will shrink and the civil side of government will increase, but overall the pie is going to shrink. I would expect this to be a very significant down-sizing. The government is running out of money!
Doug Allston can be reached at firstname.lastname@example.org or 703-627-5820.
By Dong Allston, President
Advantage Consulting Inc.