The pace of downsizing in the plastics industry has been astounding in the past few weeks. In our Feb. 5 issue, we had 11 stories about companies either closing plants or laying off workers.
Our five issues in January included 21 stories on assorted bankruptcies, layoffs and shutdowns.
Are you beginning to think that Alan Greenspan was a bit too slow in his effort to jump-start the economy?
Still, the pace of acquisitions was red-hot the past few years. Although many of those deals were supposed to save money, acquiring companies were reluctant to close plants when business was strong.
Shutting down capacity now, when the outlook is poor, makes good business sense. A properly pruned industry will be stronger and in better shape for more growth, with any luck before the end of the year.