Reaction to the broadening global economic crisis has hit much of the manufacturing and industrial process world hard and fast. Reduced consumer demand has led to swift production cuts at factories in many markets, while the credit crunch has prompted some companies to hoard cash. As manufacturers grapple with the issues of the day, future plans often take a back seat. Construction projects in many sectors have been cancelled or at best deferred, leaving many design and construction firms pessimistic about their backlogs.
When Mike Gearhart, president the manufacturing and life sciences group of Denver-based CH2M Hill Cos., touched down in Moscow on Sept. 15, he knew everything was about to change. “I popped on my Blackberry and saw that Lehman Brothers went into Chapter 11 and that Bank of America was buying Merrill Lynch. Things just went down from there,” he recalls. “Up until that point, we were far ahead of plan internationally. We’ll still finish the year ahead of plan, but the cancellations and all-stops are cutting into our backlog.”