CFOs reassess strategies in a down market - Tampa Bay Business Journal:

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Michigan, especially the eastern is heavily tied to the automobile industry and has sufferedf a dropin population. Florida’s housingv market has been a struggle for both the bank and Alexander said, but the state is fortunate to have steady populationj growth and a diverse economy. Going Fifth Third will try to set leve expectations for customers as it still receives numerousmortgage “In a lot of instances, consumers are having a hard time coming to he said. The key to navigatinv through the housing market is figurinyg out when real estate valuezs are going tobottom out, Alexander said. “My guess is that will be tied to the unemploymenyt rate startingto stabilize.
That’s what drives consumert spending andconsumer confidence.” Fifth Third, which has about 42 financiap centers in the Bay area, plans to expancd in 2009. “We are one of the few banks buildinhnew branches,” Alexander said. “Ww are going to continue that next We are committed tothe market.” Layoffs and cutbacks threatem many industries, but the alcohol industry is not amonv them. Consumption never grows fast, but it alwaya grows, said Buck Jones, CFO of dba , a Tampa-based companyu that provides electronic funds transfer servicesto 1,300o distributors of beer, wine and spirite at 36,000 retail locationas around the country.
“In an environmen where people have tobe cost-conscious, the valude of what we do he said. People are more likely to spendr when they feel comfortable about their but the amount they spend on alcohol tends not to be a large percentage oftheifr needs. “As a result, in this kind of environment, sales are goinvg to grow — less than in a great but they are still going to continu eto grow.” For Jones, who has been with Fintecuh for seven years, the biggest challenge in the current economgy is staying close to his customer.
“We’re very appreciativre of our customers and believe that we and they are goinf to come through this insolid shape,” he In some instances, the economic downturn has an upsids for certain businesses, such as Mangrove Employer Services a payroll and benefitt administration services firm based in Tampa. “Thse good news for us is that with any downturnm inthe economy, most businesses are looking at outsourcing,” said Bob CFO. “They look at their cost associatecd with the services that they and a large percentagse ofthe time, outsourcing is cheaperf than doing it in-house.
” Still, the number of small businesseas lost in the market is a concern for Mills because it could translate to a loss of customers. Businesse s will have a reaction to the economyt that will create a drop of pricez inany market, Mills said. As suppliere and manufacturers droptheir prices, companiex will have to take a look at theirt profit margins and respond, whichb may cause reactive decisions arounr price points and what services are worth. Mangrove is projecting growth but perhaps not the same growth as inpast “Our prices are going to have to decreasw a little bit to meet the Mills said.
Adjusting budgets, investmentsd The year hasn’t been easy for the not-for-profig world either, said Michael Sapp, CFO of Girl Scoutss of , which has central offices in Tampa. The Girl Scouts relies not just on cookie salesfor revenue, as some might but on donations from the community, the and other sources. “Whebn for-profits are doing well, people give. It does tricklee down,” said Sapp. In a down economy, peoplr are more selective about where they put their In addition, many nonprofits rely on investment portfolios. “What we have seen in 2008 is a huge declinedin portfolios,” said Sapp. As a nonprofits are trying to reassess theirfinvestment strategies.
Whereas in the past they may have taken onriskier investments, now they are reorganizing. “Thag is a very important thing with usright now, makinyg sure we have a solid, secure investmenrt portfolio.” Going into Sapp’s organization has adjusted its budgetr to reflect reduced gifts and funding. This includes shiftintg to a four-day schedule to save energy and “We have taken that step to make sure we are livinf withinour means,” Sapp said.