We seem to be hearing all sorts of stories, mainly from political sources, about the Recession and what is being done.
But what are your views, because in my location, there seems to be a rather disturbing increase of company's closing down at very short notice, with the end results that not only the major company as failed, but so as the other people and smaller company's involved within the industry, possibly as sub-contractor's.
I still seem to be treading mud, and expect to for two or three more years yet...
Knock on effect!.
I have to agree, seeing some peoples shopping or spending habits appear to have not changed in the least.
What made me raise the question, is that one of the local 100+ year old family owned building company's had to file for insolvency a couple of weeks ago, because one of their contractor's were taking court action for non-payments. This original company as an whole host of expensive big, medium and small scale projects on the move, and with one of its creditor's actions have now put suddenly many (and we are talking quite a lot) other smaller companies and self-employed out of business, or on the verge of doing so.
One of my neighbours as been a partner in a local well known and respected scaffolding firm, employing about 29 people. He is owed £29.000 by the above family company, and through other debt's he as had to call in a team of insolvency experts late last week, and notifying his staff that they no longer have jobs. Speaking to him this weekend, he knew the recession was bad, because last year he had to downsize slightly, but he and his other partner had no idea their company would cease to exist at such short notice, in a matter of days. His biggest burden, is the fact that not only as he had to tell his staff they no longer have jobs, but those employers were very loyal and good friend's of his. Which is not only ruining his and family Christmas, but perhaps more so, that of his now unemployed team.
Companies will continue to fail as the economic situations bites - the new year will probably see the demise of some businesses in the retail sector.
Things are very tough, and according to one economist I spoke to over the weekend we will not emerge from recession for 'another few years'. He said it's the same old story - a lack of confidence on the part of investors and lenders. The way out is -in his opinion - for us to work hard and remain optimistic. Our worst enemies are despondency and apathy.
"The way out is- in his opinion - for us to work hard and remain optimistic"
Very fine words, but what happens when you are working hard. Possibly irregular hours and seven days, and you still find that you have to inform your employees and loyal friend's that they are now unemployed, in a trade that is possibly more reliant on weather and regular payments.
Banks and financier's can become insolvent, and the government soon steps in. But who is stepping in, and supporting the vast majority of struggling small or medium scale business enterprises. Certainly not the big investor's, bank's or those ready to receive hand-outs or allowances on a regular basis. But I forgot, We are all in this together?.
Would add, that the neighbour as just had the vehicle leasing company collect their vehicles. Things certainly seem to be moving fast!.
"...the city where the "investors and lenders" live, London, is probably the least affected place in the UK"
What an odd thing to say - what makes you think that?
"...what happens when you are working hard. Possibly irregular hours and seven days, and you still find that you have to inform your employees and loyal friend's that they are now unemployed, in a trade that is possibly more reliant on weather and regular payments."
It's not just financiers who become insolvent spuds - it happens to all kinds of business. Financiers have no more protection than anyone else when it happens.
Lots of people have had to tell employees that their jobs are no longer there - and many of them have had to do it to a lot more than 29 people over the past few years. What happens is very much down to the person or people whose business it is, and to receivers and insolvency specialists.
Scaffolding businesses are part of the construction industry, and that sector has been hit hard over the past couple of years. Lots of small businesses have become insolvent, and lots more are struggling, that's what happens in recessions. Small businesses commonly don't have the financial resources to weather the storm, and when debtors fail to pay it can bring them to the tipping point.
There's no reason that the taxpayer should be expected to support small businesses that become insolvent.
In July 2011 the Office for National Statistics released figures which showed that The West Midlands, London and the South East faced the highest number of net full-time jobs losses, with each losing more than 100,000 jobs.
Basing a judgment (as you have) on the number of closed shops you see is the wrong way to go about it. Job losses are a far better indicator of the impact of a recession because they tend to come from several economic sectors,not just the retail industry.
I have 3 manufacturing companies relating to home improvement and retail construction. One of which officially goes into liquidation tomorrow when I attend the shareholders and creditors meeting with the insolvency practitioner.
The other 2 have never had it so bad and it looks like only a merger and down sizing will save them (with some job losses)
The recession is on going and will be for some time and some sectors have yet to hit rock bottom. Thats my view.
You may have missed, council's allowing the likes of Tesco and other similar supermarket chains , taking over complete areas with their 'mini stores', which leads to other smaller retailer's going out of business?.
Doesn't take long for the promotion offers to decrease, and the prices soon rise.
This thread is now locked and can not be replied to.