Tips for financing in tight times

"The biggest opportunity for U.S. manufacturers today is to get involved in exporting, either directly or working with overseas partners." —Tom Murphy, executive VP, RSM McGladrey

Murphy says the Institute for Supply Management (ISM) index, which gauges purchasing manager sentiment on whether the economy is expanding (above 50) or contracting (below 50), has stayed close to the center point of 50 in the last several months.

“You can't rely exclusively on one indicator,” Murphy asserts, “but the ISM manufacturing index would indicate it's pretty much a mixed bag—trending at the same level.”

Availability of industrial financing varies according to performance of the sector. “Lending institutions have tightened credit standards, so we're looking at tighter credit qualifications—some of it due to the economy,” says Murphy. “But it always comes down to the basics: You've got to run your business smartly. You need a plan, and then execute against it.”

Murphy encourages manufacturers to put greater emphasis on exporting into their plans. “The biggest opportunity for U.S. manufacturers today is to get involved in exporting, either directly or working with overseas partners.”