Slow growth in the'9Os

the housing market. The net result will be 1.2 million starts for the upcoming year.

However, there will be some areas of fair activity such as the

Home building will remain slow in the first half ...1.2 million housing starts... Pacific Nofttr west and Califomia will have fair activity . . . management must gear itself to the'90s.

Pacific Northwest, California, Washington, D.C. and a few other fast growing suburbs.

As everyone strives to maintain past volumes of sales, and in so doing, increase market share, margins will no doubt become slimmer for all and sales will shrink for some.

When this occurs, management will be reviewing what can be done. Increased emphasis and focus will be given to managing for profit and return on investment. rather than the generation of larger sales. Some will pursue cost reduction measures through down sizing or restructuring. This is already evident in major industries.

The economic environment of the 1980s is not going to return right away and management must gear itself for the '90s which will be an atmosphere of slower growth.

As a first step in adjusting to the new era, more attention will be given to artificial intelligence developed by better management in- formation systems. This will indicate the strengths and weaknesses in an overall business plan. All business is not good business and usually bad business can only be identified through analysis based on comprehensive information.

Better asset management will be called for, necessitating improved accounts receivable control and turnover, better inventory management and reduction of unnecessary capital items.

There should be no gloom or doom in those companies which recognize change and react to it.

None of us can leave well enough alone. Primarily because our procedures and routines are based upon the past. There is nothing we can do about the past, but we can do something about the future and think in terms of innovation and progress.