A recent article from the Wall Street Journal suggests that companies are becoming more productive in response to the downturn.
The WSJ noted that in Q4 the decrease in the number of hours worked might have been greater than the contraction in overall economic output. In other words, businesses appear to have increased their productivity.
Improvements can come from shifting marketing budgets to more easily measurable media (such as internet marketing) as opposed to print and television, renegotiating more favorable contracts with vendors and suppliers, and eliminating redundancies and waste across departments.
An uptick in productivity would contrast favorably with previous slowdowns in the 1970s and 1980s when productivity lagged.
How are you reacting to the downturn? What measures have you taken to improve your firm's productivity?