The turbulent economic climate of the arts in the 1990s raises the question of how arts managers are coping with this situation. Exploratory factor analysis of responses from 237 Australian arts managers in public, private nonprofit, and private for‐profit sectors revealed seven different strategic responses: cost reduction, political, cooperative, downsizing, refinancing, commercialization, and relocation. Private sector managers were more likely to use the refinancing strategy, and nonprofit and public managers were more likely to use the political and cooperative strategies. Implications for arts managers in using these strategies are explored.