Industry Capacity — Matching Marketplace Realities

Over the long run, management/ownership energies can be best utilized by adjusting production capacity so that it matches market reality. Let's be clear: Short-term pricing games are no way to hide from what is going on in the marketplace. One of the reasons why people discount is because they instinctively know that a hard look at their operations will reflect poorly on their past decisions—and this is difficult to face squarely.