How Manufacturers Have Increased Productivity 5.5% Despite The Recession

History tells us that productivity declines during a recession; apparently, manufacturers didn’t get that memo.

According to the U.S. Department of Labor, manufacturer productivity rose by 5.5 percent in the second quarter of 2009. Why? Computers, of course.

Economist, Brian Bethune, of IHS Global Insight, says information technology helped manufacturers discover drops in customer demand early. This helped many companies to avoid over-production and cash flow issues. Also, using computerized point of sale records, web surfing habits, social networking sites and on-line purchases helped them understand which products at what quantity to manufacture, where to invest their marketing dollars and what retail outlets to focus on.

The lesson? Make sure you’re using technology to stay ahead of the curve and as a strategy to “recession-proof” your business.