|
For more information contact: Kent Davis or Doug Cash Happy New Year! |
|
ATI Cost Reduction & Profit Recovery Services850 Stephenson Hwy. Ste. 402 |
|
The ATI COMMUNICATOR January 2006 37th Edition |
|
The rapidly changing economy requires new and innovative out of the box thinking. |
How can I do more with less in these troubled times?
"The Michigan Economy." The Detroit News. 12/29/05.
Michigan will continue to grapple with one of the nation's highest unemployment rates. Many families will see incomes decline or stagnant. And businesses will need to get creative and disciplined to weather an economy that will lag the nation for the 12th straight year, according to analysts.
Michigan will see its sixth straight year of job losses in 2006, a streak not seen in at least 40 years, according to an annual forecast by University of Michigan economists Joan Crary, George Fulton, and Saul Hymans. Some 9,600 jobs may disappear in 2006, the U-M economists estimate.
There are some encouraging signs. The private non-manufacturing sector may add 4,400 jobs in 2006, the U-M economists said. Service sector jobs will grow next year, and the growth of tourism may be the brightest trend, several analysts said.
The good thing about hitting near rock bottom is many now have to confront their fundamental problems.
"A crisis is a terrible thing to waste," said Patrick Anderson, a Lansing-based economist. "It should give people, institutions and politicians the necessary courage to implement change."
Given this "crisis" environment, what is the initial reaction of any organization? Cut costs immediately!
What is the difference between cost cutting and cost savings?
|
COST CUTTING |
COST SAVINGS |
|
Set a specific reduction target |
There are no set targets. Savings are fluid. |
|
Quickest and easiest approach: job elimination and reduce salaries |
There should be no loss of jobs from this process |
|
Eliminate product mix features and services |
Product quality would remain the same or improve |
|
Slash budgets while requiring the same amount of output |
Budgets would remain the same or increase |
|
Let R&D go dormant |
R&D continues on schedule |
|
Decreased customer interaction due to decreases in traveling expenses |
Customer interaction could improve |
|
Accept lower profits |
The bottom line is enhanced |
|
Aggressively seek low priced vendors |
Keep the established vendor base and relationships |
|
Accept lower quality standards |
Accept higher standards of quality |
|
Over all the above is painful! |
Over all the above is achieved without pain! |
ATI has over 15 years of success in the areas of cost savings and cost reductions. This success has been achieved without affecting the client's current productivity. ATI's goal is to maintain or improve the current productivity, but at a lower cost level.
ATI has systems, templates, databases, and trained personnel to implement cost effective price controls. ATI's cross industry experiences have enabled ATI to save its client's over $50,000,000 and to become a leader in the cost reduction and profit recovery services industry. Our programs are based on contingent fees that enable our clients to save money without having to budget for ATI’s services. Our unconditional promise to you is "no savings - no fees."
Please call us for additional information to learn how your company can substantially reduce costs - risk free.
We hope you will look forward
to the Communicator and would appreciate any feedback that you would like to provide.Please email comments to
dc@auditbills.comATI
Cost Reduction & Profit Recovery ServicesTo unsubscribe please email to
dc@auditbills.com and fill in the subject line "unsubscribe".