As the manufacturing sector continues to feel the impact of the economic downturn, executives and corporate managers have rarely faced such challenging and high stakes business choices: How much should we cut capacity? Which plants should we idle? How will we know when the recession has reached its bottom? How do we maintain the flexibility and resources to grow when demand returns? They must respond to the reaction of financial investors and decreases in the amount of credit available, which may lead to risk of insolvency if not addressed before issues become critical.
Companies can weather the credit crisis and the economic downturn by acting quickly and decisively, and making the hard decisions early on. They need to address the critical short term risks of liquidity and financing while also preparing for the longer term challenges of the economic slowdown. Well capitalized companies can find opportunities to achieve strategic objectives such as acquiring weakened competitors to increase market share, adding new product lines or expanding into new geographies.
PwC has strong credentials in helping clients with effective business management through financial forecasting, capital allocation and budgeting, liquidity and financing, risk management, working capital, sustainable cost reduction, restructuring/reorganization and human capital retention. Our network of chemical industry experts worldwide support clients in finding the right solutions which will help them through the challenging short term financial environment and build towards sustainable long term business practices.