News headlines are Ford US is planning to cut by one-fifth the number of vehicles it plans to build in the final three months of the year. Ford and GM are having to deal with rolling losses made even harder by a double edged sword. Falling demand and rising costs. With oil at record high levels, Detroit’s market share has dropped to its lowest level in history, while Asian brands, known for their fuel efficiency, are setting sales records.
Ford cannot continue much longer without a radical change in its business model,” said John Casesa, an industry analyst with Casesa Strategic Partners. Both companies “have got to resize, restructure and reinvent themselves.”
“This is only the resizing,” he said.
Turning the ship around is not that easy for Ford or GM, given the long time lines involved in getting new models to market. Five years is probably the average time. Models being released today, work started on design 5 years ago. Cars being designed today wont see production til 2011.
I see parallels for the conveyancing and mortgage industry. Profits are being squeezed as there is always price pressure on conveyancing and rising costs of wages, rent and overhead. As an industry we have no say in the total level of properties being turned over.
I do however see the benefits of increased productivity via implementing digital and electronic conveyancing mechanisms which will dramaticaly lower the cost side of the equation.
Law firms and conveyancing companies will need to embrace technology to stay competitive.
Financial institutions are always under pressure to lower costs. The industry benchmark for mortgage and loan processing I believe is approximately $300. Can this be lowered to $50? I believe it can.
These changes I see will be brought to being over the next 5 years. Everyone needs to change if they want to stay in the game.
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