Real Estate collapsed, Global Stock Market imploded, consumer confidence is waning, sales decline, and production slows. What were the warning signs? When will it end? What should do to get through it, and how will we know that the economy is coming back? A look at the domino effect and response as it applies to reverse logistics.

1. Navigating Economic Challenges Charting a Course for Survival and Prosperity by John Mehrmann

5. In the shadow of foreclosure New York Times Sept 7, 2008

10. Unemployment Rate Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual 1998 4.6 4.6 4.7 4.3 4.4 4.5 4.5 4.5 4.6 4.5 4.4 4.4 1999 4.3 4.4 4.2 4.3 4.2 4.3 4.3 4.2 4.2 4.1 4.1 4.0 2000 4.0 4.1 4.0 3.8 4.0 4.0 4.0 4.1 3.9 3.9 3.9 3.9 2001 4.2 4.2 4.3 4.4 4.3 4.5 4.6 4.9 5.0 5.3 5.5 5.7 2002 5.7 5.7 5.7 5.9 5.8 5.8 5.8 5.7 5.7 5.7 5.9 6.0 2003 5.8 5.9 5.9 6.0 6.1 6.3 6.2 6.1 6.1 6.0 5.8 5.7 2004 5.7 5.6 5.8 5.6 5.6 5.6 5.5 5.4 5.4 5.5 5.4 5.4 2005 5.2 5.4 5.2 5.2 5.1 5.1 5.0 4.9 5.0 5.0 5.0 4.8 2006 4.7 4.8 4.7 4.7 4.7 4.6 4.7 4.7 4.5 4.4 4.5 4.4 2007 4.6 4.5 4.4 4.5 4.5 4.6 4.7 4.7 4.7 4.8 4.7 4.9 2008 4.9 4.8 5.1 5.0 5.5 5.6 5.8 6.2 6.2 6.6 6.8 7.2

14. Producers adjust to market Consumer Confidence & External Factors Retail Sales Decline Manufacturers Lower Production Microsoft 11% drop in profit cuts 5,000 jobs* Sony Net Loss $1.7 billion cuts 16,000 jobs* Intel Closes factories cuts 5,000 jobs* Nokia 46% drop in earnings* AMD 33% revenue decline* Jones Apparel Group $840 million write downs* * Feb 2009 Headline News Manufacturers in many industries react to challenge GE Profits drop 45% in Q4* Across all industries, manufacturers react responsibly to economic challenges

15. Global Economy Consumer confidence down. Spending “buying” declines Production decreases due to lower demand Less production means fewer jobs, factories close, GDP down Less production also means less demand for material

17. Where are you in the product and service supply chain? Where are your clients & partners in the supply chain? What are their challenges? What makes them financially secure?