Managing expenses is an immediate way to strengthen your position in economically uncertain times, and a smart place to begin is inventory management.

“Normalize purchasing habits and inventory sales ratios as a vital cost-cutting measure in anticipation of future economic challenges,” says Roth. “Along with potentially destocking, this can help rebalance inventory cost should a recession come along.”

While it sounds unconventional, Roth also says investing in equipment upgrades before any downturn hits can help cut costs. “Running equipment until the wheels fall off to save money during a downturn can be tempting. But investing in upgraded technology can reduce labor hours per product, maximize output levels, and reduce the need for added headcount, while also boosting retention,” he says. “Some of the most impactful success stories reveal manufacturers that took that upgrade risk and solved for cost issues and potential worker shortages before either problem ever kicked off.”

Recalibrating your approach to managing the equipment that’s still running well is also key. If a recession is coming, it’s smart to preserve liquidity for the future without touching any revolving credit facility you might have. How? By refinancing existing assets, such as used equipment. You may be able to raise capital and cut costs by refinancing a piece of equipment that’s already largely or fully paid off. Backing what you borrow with an asset allows a lender to offer better terms compared to an unsecured revolving line of credit or unsecured term loan.

“You can also look into hedging certain aspects of your business to defray costs and boost liquidity,” Roth says. For example, construction, airlines, and other transportation or related industry sectors may be able to protect profits by hedging diesel, natural gas, and crude oil.

Materials hedging is simpler than it seems: If a business anticipates costs will increase, it prepays or locks in prices with suppliers at current rates. The strategy enables businesses to keep favorable and predictable costs for a known time.

When it comes to cutting or insulating against costs, even in an uncertain economy like today’s, there are plenty of creative ways Truist can help.

Paying attention to real estate trends—commercial and residential­—is crucial in navigating economic uncertainty. “Keeping an eye on the residential housing market can be helpful,” says Roth. “Housing markets impact everyone, and new construction trends can often be indicators of a downturn or recovery.”

Monitoring residential real estate demand—both generally as a sign of economic conditions and specifically as a way to grow business—can open opportunity during a downturn.