Greetings from Leppävirta and welcome to the Dimex blog. We wanted to start telling things from our perspective, and who else would be the first to tell us, even for the weakest of us, than the CEO.
As an entrepreneur I’ve now experienced two recessions: the current one and the one that began in the early 1990s. Back then the situation crept up on us. It took a while before we really understood what was happening. You can’t talk about creeping when it comes to today’s downturn. Even the understanding came faster.
But let's go back to the early 90s.
The first signs of the recession appeared in 1991, when our sales began to decline. Sewing work had already moved away from Finland in the 1970s and especially in the 1980s, but due to the cost structure and, on the other hand, the increased supply, the shift began to accelerate rapidly in the early 1990s. At that time we also found a partner in Estonia. This arrangement is still in place.
In the early 90s our sales were one million euros and there were about 20 of us Dimex people, including our own sewing team. We also outsourced sewing work to subcontractors elsewhere in Finland. As sales declined, it became clear that something had to be done. First we increased the number of sales calls. After that we terminated subcontracting agreements. Then we cut costs in Leppävirta, for example by ending the entrepreneurs’ voluntary insurance and suspending salary payments to the entrepreneur-owners for six months. Despite all these measures, we eventually had to lay off three employees.
The layoffs felt awful and were really distressing. Cutting our own benefits was, however, much easier than cutting those of others. The previous recession is well illustrated by a conversation at our home around Christmas 1992. Someone remarked, in keeping with the theme of the season, that Jesus will return at some point. Our younger, 9‑year‑old daughter Tuire said: “Hopefully not right now, with this recession and all.”
What can you even say to that.
In the next blog we will move more to the present day. Wishing you a happy March
Jukka Krogerus
Managing director
P.S.
If you feel like it, please contact:
jukka.krogerus@dimex.fi