Strategy in Tough Times

By Tony Raimondo, Jr. - President of Behlen Country / Vice Chairman of the Board

There is, in fact, some light at the end of the economic tunnel. Recent reports indicate the economy has hit bottom, and economic growth is forecasted for the second half of 2009. Making good strategic decisions is always important in running a successful business and even more critical during a recession.

Cutting costs is something we all have to do in these tough times, but we have to make sure we don't sacrifice our long-term strategy - where do we want to be in five years and how do we get there. Each of our business units has a strategy for developing new products, new markets, and capabilities that fit with our core competencies.

One mistake companies often make is cutting marketing and sales efforts too much. Cost reductions should never jeopardize the long-term effectiveness of your selling effort. You can bet your competitors are also cutting their sales efforts, so a slow market is the best time to focus on increasing market share. By keeping sales efforts strong and not slowing down on new product innovation efforts - you'll give customers a reason to buy more from you.

All of our business units are continuing to diversify by expanding markets and adding new product offerings to build market share. Ag developed the 40 meter, 1 million bushel, clear roof span grain bin to provide a bigger option in the grain storage market. Behlen Country has developed better products like the Landowner Gate, HaySMART bale feeder, and the Club dog kennel that provide unique options in the country lifestyle market. Behlen Building Systems is in the early stages of expanding west by increasing our presence in the west region market. Custom Fab and Distefano have combined capabilities and entered new markets with new products. Expanding in these ways strengthens our company and gives you the confidence that we will be a reliable supplier for years to come.

In addition, Behlen is exploring, and I am leading many opportunities in renewable energy including lattice towers for wind turbines, solar tracking platforms for solar power generation facilities, and a host of many green building design enhancements. The "green" initiatives throughout the world have tremendous growth potential, and we believe the time and energy we spend on these products will have a nice return on investment over the next three to five years. We also see unique ways to cross market renewable energy product offerings with our builders, for example.

Our strategy is to, in every way possible, use the slow economy to our advantage. While our competitors are struggling, we will remain aggressive in pursuing new products and new markets. As the economy begins to rebound, we will be in position to capitalize on our strengths and grow our business even further.