Field service efficiency, preventive maintenance, and customer relationships are more important than ever.
Economic uncertainty is casting a dark shadow over the business landscape as tariffs, cost hikes, stock market losses, and fears of recession dominate the news. However, for service-centric organizations, opportunities also await on the horizon. With the help of technology, organizations can withstand the current setbacks, focus on differentiators, and double down on value and customer relationships. They can also take advantage of the natural shift toward repairing goods, rather than replacing them, which often happens during economic downturns. The economic forecast is not 100% gloom.
Understanding the challenges
Volatility in the stock market, along with uncertainty over potential trade wars, can make even the most confident business leaders nervous. Some may reconsider their strategies for the year, pull back on planned spending, and clamp down on initiatives, like investment in software.
Knee-jerk reactions, though, seldom generate positive results. Reactionary moves can derail calculated plans and drastically set back phased efforts, like expanding maintenance agreements, by playing the trusted advisor role and offering preemptive advice. Making cuts to programs and staff can completely erode past achievements and jeopardize future recovery.
Downsizing the field service team is especially dangerous. Skilled workers will likely be difficult to recruit in the future, when the economic cycle turns to recovery and growth mode. Contractors are especially vulnerable. Without continued employment, they may turn to other fields, causing shortages of technicians later. Risking customer satisfaction is also short-sighted. When the economy takes a downturn, retaining every customer is essential. Having a slow response to service requests because of staff cutbacks can diminish customer satisfaction. After negative experiences, rebuilding customer loyalty will be difficult.
Stay the course
Many economists recommend staying the course and riding out periods of market volatility, even when the investment portfolio is taking a hit and overall profitability is slipping. “The best way to manage these moments is to maximize your current and future selves to block out noise that doesn’t apply to your plan,” said CFP Preston Cherry, founder and president of Concurrent Financial Planning. Letting emotions get in the way is one of “the greatest threats to life and money plans,” said Cherry.
For service companies, staying the course means:
Unique opportunities for service companies
History shows that times of economic downturn tend to mean an uptick in business for service providers. Consumers are more likely to repair appliances and equipment than simply replace items or upgrade. This means more service calls for dishwashers, refrigerators, and other appliances.
Enterprises are also more concerned about preventive maintenance and entering into maintenance agreements so they can be proactive and avoid unplanned downtime. Downtime eats into thin margins and hurts profitability, a risk to be avoided when times are already tough. Companies also turn to preventive maintenance because it can extend the lifecycle of machinery and equipment, like HVAC systems, overhead doors, and people-moving equipment. This reduces the need to replace capital-intensive machinery, systems, or appliances -- important when cash flow may be limited.
Times of economic upheaval are also prime opportunities to build relationships with customers, providing sound advice on service, replacement parts, maintenance, and how to maximize investments in goods, appliances, or equipment. During uncertain times, customers seek guidance. The service provider can be the right place and time to provide valuable insights.
Visibility and risk management
With so many challenges and opportunities, how do organizations manage to obtain resiliency during economic upheaval? According to Matt Carey, senior vice president, Office of the CFO at FIS, it boils down to proactive visibility and the right technological investments.
“It’s about positioning your organization for resilience, ensuring your financial strategy can withstand volatility while optimizing growth opportunities,” he says.
Having sound operational processes in place, ways to communicate with customers, and tools to help field technicians optimize resources will help organizations achieve these goals.
Becoming recession resilient
Forbes says in a recent article that technology can help “field service businesses move from economically vulnerable to recession resilient.”
One strategy is to use the downtime to move into vacancies left by companies that are not well-diversified or alert to opportunities. “By leaning into potential market gaps that present opportunities, companies can use down cycles to their advantage and be better positioned against competitors when the economy picks up again,” says the article.
Emphasizing value is another tactic Forbes recommends for service companies facing uncertainty. “The best-run businesses automate routine interactions while ensuring their technicians can provide tailored, high-value human touch follow-ups after major services.” During market downturns, value is a top priority for customers, as is personalized human interaction.
The role of leadership
An advisor to CFOs writes, “Navigating the maze of new tariffs, geopolitical tensions, and economic uncertainties can feel overwhelming. As business owners, you can tackle these challenges with strategic planning and proactive steps.” The author goes on to say strategic planning should include a careful analysis of business potential, profitability, possible roadblocks to providing goods or services to customers, and the impact on cash flow. As customers may face uphill challenges during times of upheaval, they may be short on funds for paying their invoices. Cash flow may be at risk.
The wrap up
It’s hard to predict how the current economic climate will evolve and its long-term impact. But it is almost certain that there is no fast resolution ahead. This uncertainty may continue for years. This is the right time to act. Shore up processes, continue to put modern software in place, focus on differentiators, and strive to build relationships. With a sound strategy in place, service service-centric organization will be able to weather this upheaval, no matter how it evolves.
“The most resilient businesses don’t just survive economic volatility—they thrive. Their success isn’t about luck; it’s about strategic preparation and smart investment, says Green Industry Pros. “Economic downturns don’t affect all businesses equally. While some struggle to stay afloat, others emerge stronger.”
What separates the ones that excel from the ones that languish? A multitude of factors likely contribute to the success. But one commonality is always present: modern software to help the organization identify and understand its challenges and then take strategic steps to engage with customers and deliver on the promise of excellent service.