NeoCon 2009 Update

June 2009 – Charlotte, NC

It’s been a tough 6-12 months for most everyone in the world, coping with shrinking business, cost cutting measures and pessimism on all fronts.

So, we were pleasantly surprised with NeoCon 2009 and the new “can do” attitudes we saw. Most clients are now stating that sales have leveled off at a 20-30% decline, that there are some encouraging signs that business is picking up, and that new projects are being considered. Attendance at the market was actually pretty good if one had the proper mindset going into the show.

We observed a clear “haves vs. have nots” among the exhibitors, and we are convinced many of our weaker players will not survive these next 12 months. Smart companies will develop predatory practices to gain market share from these weaker competitors. It is incumbent on senior management (yes, even the CEO) to lead this effort and help the front line reps build business in a weakened marketplace.

We also know that America is developing a Value Reset, with a more focused analysis on where they will spend their money, and where they can save their hard-earned dollars. Premium goods will have to justify their higher prices; otherwise, consumers will shift to lower price products (try the subway from O’Hare to Chicago: $2.25 vs. $35 – and it’s quicker!)

Capital markets are beginning to loosen, and we expect an increase in Merger & Acquisition activity later this year as we all begin to have better visibility in our businesses and the general economy.

Please let us know how we can assist you and your company. Also, let us know what you think about our ideas presented in this Newsletter. As always, our conversations will be held in the strictest of confidence.