CRW CEO speaks out.
What do you see as your biggest challenge in 2009?
"Getting sales up. Sales are the toughest thing to grow right now because of everyone's trepidation to what is going on. With the economy, people are very cautious about spending anything so trying to grow your sales is very difficult. You may have to branch off into things you've never branched off into, broaden your horizons, seek customers you may never have had to seek before. That is the toughest thing we face right now."
How has your business been impacted by consolidation?
"Through consolidation, you can lose your local touch in the marketplace. The company that made its life in your region knows what the customer wants, knows what to have in stock and has it in stock. A big company that comes in has to pay for the acquisition so they cut talent, they cut inventory and it is not a good scenario. And depending on what they push in the way of product may not be what the market wants. A lot of big companies are promoting their private label. And if the marketplace is name brand, it is not a success."
Is brand still important to your customers? Or are they more focused on the bottom line?
"It depends on the product and the history. We are both in the automotive and heavy-duty business. A lot of what has happened in automotive business is happening in heavy duty. A lot of equipment built in China was not good quality a few years back. So some people are reticent in getting foreign-made products. Rotors for example, 7 to 8 years ago, were a branded product. Now 99 percent are made in China overseas. In truck drums, the overseas drums are starting to catch on."
"When the overseas market finds the ability to make a quality product and put it out there and they don't have a problem, it starts to gain acceptance in the marketplace. But it is not quick. It takes a few years to gain that acceptance. It is moving away from brands, but is not going to go quickly. Moving that way, but won't go quickly.
How has your company been impacted by the economy?
"Sales has been the biggest. But it makes companies better. It forces you to go back to the basics. How do you answer the phones? How do you service the customer? Are you problem solvers? Look at inventory and figure out how to invest in it. If you have a line that you invest in that is not satisfactory, do you continue? Put your investment into the lines with the greatest returns. It makes good companies analyze what they are doing and get better. The ones that don't get better usually get sold."
