{"id":3216,"date":"2012-11-27T21:56:00","date_gmt":"2012-11-27T21:56:00","guid":{"rendered":"https:\/\/www.certitrek.com\/nlpa\/2012\/11\/27\/does-the-fiscal-cliff-threaten-procurement-more-than-any-other-function\/"},"modified":"2021-07-06T08:50:30","modified_gmt":"2021-07-06T12:50:30","slug":"does-the-fiscal-cliff-threaten-procurement","status":"publish","type":"post","link":"https:\/\/www.certitrek.com\/nlpa\/blog\/does-the-fiscal-cliff-threaten-procurement\/","title":{"rendered":"Does The Fiscal Cliff Threaten Procurement More Than Any Other Function?"},"content":{"rendered":"<div style=\"clear: both;text-align: center\"><\/div>\n<p>Seems that the top headline on every newspaper and news website this month has been related to \u201cThe Fiscal Cliff\u201d in the USA \u2013 a December 31, 2012 deadline upon which, absent a budget agreement by the party-divided US Congress \u2013 automatic spending cuts and tax increases will go into effect, sending the US economy into yet another recession.\u00a0 Once again, this afternoon\u2019s headlines report \u201clittle progress\u201d on resolving this matter.<\/p>\n<p>Don\u2019t miss updates on Procurement &amp; Supply Chain, Subscribe here!<\/p>\n<p>If you\u2019re familiar with my teachings, you know that the members of Congress in opposing parties are using the deadline to see if the other side will \u201cblink\u201d and give in to their negotiating demands.\u00a0 Usually, that is a good negotiating tactic.<\/p>\n<p>However, the uncertainty of an outcome of these negotiations has effects beyond just the parties negotiating.\u00a0 It has US businesses preparing for a worst-case scenario and \u201ctightening their belts,\u201d really restricting expenditures to preserve cash.<\/p>\n<p>In addition to restricting spending, informal evidence suggests that companies are beginning to lay off workers \u2013 perhaps just temporarily.\u00a0 When deciding on whom to lay off, companies often look to departments that are operating under their capacity.<\/p>\n<p>With non-essential expenditures being deferred or canceled, guess which department isn\u2019t quite as overwhelmingly busy as it was a month or so ago.<\/p>\n<p>That\u2019s right\u2026the procurement department!<\/p>\n<p>Now, you and I know that procurement professionals do more with their workday than just place order after order.\u00a0 But we can probably also agree that many C-level executives do not understand all of the intricacies of procurement beyond simply \u201cbuying stuff.\u201d<\/p>\n<p>One may speculate that these factors may conspire to result in procurement headcount being threatened \u2013 albeit temporarily \u2013 by the fiscal cliff.\u00a0 I won\u2019t claim to be an expert and say that it is for sure, so let me simply ask your opinion\u2026<\/p>\n<p>Do you think that procurement is threatened more by the fiscal cliff than any other function?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Seems that the top headline on every newspaper and news [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":4050,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3216","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-procurement"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.13 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Does The Fiscal Cliff Threaten Procurement More Than Any Other Function? 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