CFOs reassess strategies in a down market - Nashville Business Journal:

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Michigan, especially the eastern is heavily tied to the automobilwe industry and has suffered a dropin Florida’s housing market has been a strugglse for both the bank and consumers, Alexander but the state is fortunate to have steady populatiomn growth and a diverse economy. Going forward, Fifthu Third will try to set level expectationd for customers as it still receivese numerousmortgage applications. “In a lot of consumers are having a hard time cominvto grips,” he said. The key to navigating through the housingf market is figuring out when real estate valuess are going tobottom out, Alexanderr said.
“My guess is that [recovery] will be tied to the unemploymenty rate startingto stabilize. That’s what drivess consumer spending andconsumee confidence.” Fifth Third, which has about 42 financial centers in the Bay area, plans to expandr in 2009. “We are one of the few banks building new branches,” Alexander said. “Wee are going to continue thatnext year. We are committerd to the market.” Layoffs and cutbacks threaten many but the alcohol industry is notamongf them.
Consumption never grow s fast, but it always said Buck Jones, CFO of dba , a Tampa-baseed company that provides electronif funds transfer servicesto 1,300 distributors of beer, wine and spiritsx at 36,000 retail locations around the country. “Imn an environment where people have to be the value of what wedo increases,” he said. Peoplr are more likely to spend when they feel comfortablw abouttheir wealth, but the amounr they spend on alcoholo tends not to be a large percentage of their “As a result, in this kind of sales are going to grow less than in a great environment, but they are stilll going to continue to grow.
” For who has been with Fintech for seven years, the bigges challenge in the current economy is stayinyg close to his customer. “We’re very appreciative of our customers and believde that we and they are going to come through this insoli shape,” he said. In some instances, the economic downturn has an upsided forcertain businesses, such as Mangrove Employer Serviceas Inc., a payroll and benefit administration servicesz firm based in Tampa. “The good news for us is that with any downturh inthe economy, most businesses are looking at outsourcing,” said Bob CFO.
“They look at theird cost associated with the services that they and a large percentage ofthe time, outsourcingg is cheaper than doinb it in-house.” Still, the number of small businesse s lost in the market is a concern for Millzs because it could translate to a loss of customers. Businessea will have a reaction to the economy that will creat e a drop of prices inany market, Mills As suppliers and manufacturers drop their companies will have to take a look at theirt profit margins and respond, which may causr reactive decisions around price pointe and what services are worth. Mangrove is projecting growtg but perhaps not the same growthg as inpast years.
“Our prices are going to have to decreasr a little bit to meetthe market,” Millas said. Adjusting budgets, investments The year hasn’rt been easy for the not-for-profit world either, said Michael Sapp, CFO of Girl Scouts of , which has central office s in Tampa. The Girl Scouts relies not just on cookis salesfor revenue, as some might think, but on donationsd from alumni, the community, the and othere sources. “When for-profits are doing well, peoplse give. It does trickle down,” said In a down economy, peoplre are more selective about where they puttheird donations. In addition, many nonprofits rely on investmentg portfolios.
“What we have seen in 2008 is a huge declinedin portfolios,” said Sapp. As a result, nonprofits are tryint to reassess theirinvestmen strategies. Whereas in the past they may have taken onriskier investments, now they are “That is a very important thing with us righf now, making sure we have a solid, securw investment portfolio.” Going into 2009, Sapp’s organizatiom has adjusted its budget to reflect reducedc gifts and funding. This includes shifting to a four-da schedule to save energy and time. “We have taken that step to make sure we are livinfg withinour means,” Sapp said.