Coronavirus containment and crashing economic demand present HVAC contractors and managers with a historic challenge. They face both enormous financial and operating difficulties, but at the same time, they have an opportunity to reshape their companies to produce vast benefits for years to come. With this in mind, downsizing is one of the most important factors that can either weaken or strengthen a company — both during and after a crisis — depending on how it is handled. Faced with rapidly diminishing resources, managers have to get started right away and move quickly. If they get this right, they will own the best customers and leave their competitors in the dust. If they get this wrong, they will face years of struggle trying to catch up.
Virtually without warning, many businesses today are being forced to deal with unprecedented, externally-driven sales declines without nearly enough time to bring expenses into alignment with available revenues. This combination is placing survival-threatening burdens on cash flow and financial reserves. The greatest danger in responding lies in the inability to focus reduced resources on targets that offer the greatest potential for success. Weakly-focused or unfocused broad-brush responses are almost certain to fail or to produce inadequate results.