Research shows that during times of economic uncertainty, companies that find a balance between reducing the resources they need to survive and investing in key areas for growth will fare better through a recession and beyond. It’s a nuanced approach that involves playing offense and defense at the same time.

Many small and medium-sized manufacturers have been significantly affected by the Covid-19 pandemic and find themselves with few apparent options. They have reduced their use of resources to the point that they feel there’s no time for anything beyond operations. When they do have time, it’s due to a decrease in business—and that means they don’t have money to invest.

As a result, they may become risk-averse, hesitant to upgrade machinery or hire new people before more business returns. But exploring and exploiting opportunities involves risk. Hunkering down to wait out economic uncertainty is typically not a path that leads to growth or positive change.

 …