The auto industry in the U.S. almost came to a screeching halt in March 2020 because of the coronavirus outbreak. Sales began to see a sharp decline. Although it was initially assumed that there would be a quick recovery, it was soon realized that it would take long-term and short-term planning to deal with the current crisis. The automotive industry needs to rethink and restructure in order to survive and emerge stronger. Now the major question on everyone’s mind is how? With a decline in the economy, how do smaller businesses bounce back? Luckily, companies such as Crest Hill Capital can help you overcome this crisis. Let’s find out how.
- Modifying Workstations
Coronavirus is very contagious and is known to spread rapidly in closed spaces. Hence, it becomes very important to protect employees and curb the spread of the virus within your workstations. Certain steps need to be taken to keep staff and customers safe. These steps could include setting up temperature checks, self-screening for employees, redesigning workstations to keep social distancing, or increasing the number of breaks and shifts to avoid too many people gathering at one time. You can also install thermal imaging cameras and plexiglass barriers between workstations and adopt other precautionary measures. Redesign and readjustments are not an easy task, and it requires a ready budget to cover costs. With Crest Hill Capital’s cash advance, you need not worry about these costs as you will have timely finances to make these changes and keep your team safe.
- Turning Towards Technology
With social distancing in place, most industries are turning towards technology. Successful companies are identifying ways to make use of digital tools such as augmented reality, autonomous robots, and digital simulations. Some companies have begun training their engineers and operators to operate new equipment, which was traditionally handled by instructors who would travel to remote sites. With a cash advance, you can invest in optimizing floor management by using autonomous guided vehicles, which will eliminate the need for other human-operated machinery.
- Find Alternative Sourcing Strategies
As a business owner, you may have seen a disruption in supply and demand up and down the chain. Many manufacturers who depended on other countries for parts now need to look locally or at other markets. It’s time to evaluate the impact of COVID-19 on your business and identify the changes you need to make to your processes and workflow.
- Addressing Liquidity Challenges
The U.S. has seen a decline in large purchases, and many are still fearful of losing their jobs. Many auto stores and dealerships are concerned that the pandemic may trigger events such as long-lived asset impairments, restructuring actions, or liquidity issues. To address liquidity challenges, you need to analyze your cash-flow statement and check whether you have real-time visibility for funding. Based on your evaluation, you can consider a cash advance through Crest Hill Capital as an alternative financial source. It is important to establish tactical cash and working-capital framework that is designed to absorb commercial shocks.
The COVID-19 crisis will eventually end, and there is no doubt that the automotive industry will emerge with a whole new perspective. An industry that once worked globally may now have to consider local production networks and reduce its global dependency. Business models may need to be changed to streamline existing processes and bring in digitalization. The current crisis demands that we become more prepared, break old habits, and experiment with new ways of doing things. However, the good news is that with Crest Hill Capital, your financial situation is in safe hands.
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