Focus Management Group: February Month in Review
Each month we post an overview article that covers our recent company articles, announcements, and insights. Below is for the month of February.
What Does Changing the Calculation Method for CPI Mean for Consumers and Businesses?
The calculation method for the CPI changed with the January 2023 results. The CPI is a function of the prices of a market basket of goods, and the relative weighting of consumers’ use of each individual item in the basket. The spending weighting had been updated every two years and will now be updated every year. The 2023 weighting will be based on consumer spending activity in 2021.
For readers who would like to see the weighting changes in detail, this article shows the 2023 weighting under the previous approach, which would use the 2019-2020 weights, versus the new approach which will use the 2021 weights.
Some experts and statisticians will certainly argue in favor of the change and others will argue against the change in calculation...
Let's take a look at the changes here...
The Manufacturing PMI and Inventory Levels Provide Clues for Q1 2023
Once the supply chain issues of 2020 and 2021 started to relieve in 2022, businesses began experiencing higher overall levels of inventory. In part the increased levels of inventory were a result of moving away from just in time inventory methods, but suppliers also began filling purchase orders that had been outstanding for some time, which may have unexpectedly increased the investment in inventory.
The intentional and unintentional increase in inventory stressed cash flow and working capital management, and stressed asset-based lines of credit.
What does this mean?
Companies are continuing to deal with multiple challenges as they forecast 2023 performance and manage their cash flow and operating cycle.
Read more here!
How to Lead a Successful Turnaround Management Initiative
While many businesses hire turnaround management firms at the request of their lender, some key planning techniques will assist the business in receiving the best outcome from the turnaround management professional selected.
Using the planning process outlined in this article during the interviews with potential turnaround management firms will help a business ensure the firm being hired will assist in achieving the best outcome possible for the initiative.
Although every company is unique and a turnaround management initiative requires a tailored approach, there are several key principles that can help guide a successful turnaround management initiative.
Read more here to find out which techniques will lead you to success...