At the beginning of 2010, with the snow
falling outside, salt in short supply and travelling conditions
difficult, I find myself looking back to what was happening in our
industry this time last year.
It is
remarkable how quickly things can change in the course of one year. In
January 2009, our company, like many others apart from perhaps the large
supermarkets, was staring into the abyss.
Suddenly,
out of the blue, turnover was at least 25% down and falling. After the
worst banking crisis in modern history and doom and gloom everywhere you
looked, there seemed to be no prospect of an upturn in the near future.
Plans had to be put on hold, budgets chopped and exhibitions cancelled.
It was time to get our heads down and concentrate on ‘the knitting.’
We
all believed that we were in for a long haul of stagnation and
depression. In fact, to use the old football cliché, it was a year of
two halves. By the middle of June, things began to get busier.
‘Of
course’, I hear you say, ‘It is no surprise that a company like yours
starts to thrive in a recession. You are, after all, just glorified
scrap merchants; scavengers that capitalise on other people’s misery.
When things are tight, companies buy second hand. You also benefit from
lots of industrial plant & equipment coming onto the market as the
result of closures and liquidations.’
While
this view may be partially true, it does not tell the whole story. In
fact, the used machinery market mirrors economic trends just like any
other business. When the surface finishing sector is busy and turning a
profit, so are we. When times get tough, we also feel the pain. And
whilst opportunities may arise as the result of factory closures, such
as de-commissioning projects and asset sales, we still need to have a
buoyant industry sector to dispose of the machinery that has been
acquired and to keep sales moving.
The
big difference between this and other past downturns is that this time,
the whole world went into recession at the same time, so we could not
utilise our normal flexibility to find new markets.
And
although an upturn is welcome, it brings its own problems. Good quality
finishing machinery is now in short supply and our future success
depends on our ability to constantly replenish our stocks.
So
as I reflect on a more optimistic outlook at the beginning of a new
decade, here are some predictions from the Old Riley Almanac:
Firstly,
things will not be as bad as expected. There is life out there!
Manufacturing, surprisingly, is undergoing a resurgence; maybe not in
the kinds of volumes that we have been used to, but certainly in niche
markets where the access to finishing expertise and equipment becomes a
priority.
Secondly, surface
finishing technology in its broadest sense will continue to evolve and
change. There will be an increased number of companies coming into this
sector in the coming months and years, many of them more innovative and
flexible than the traditional finishing shops. They will have their own
ideas, methods of working and innovative technologies that will find new
markets and breathe new life into the industry.
Finally,
our old friend the internet will open up the world even more, enabling
all of us to take advantage of the many opportunities that are out
there. For our part, we can now buy and sell across international
boundaries as we never could before, helped considerably by the
continuing weakness of sterling. So as countries across the globe emerge
from recession in increasing numbers during 2010, we should all be
poised and ready to benefit.
Things
can only get better, and for all of us in the beleaguered surface
finishing industry there are reasons to be cheerful at the start of
2010. A happy new year to one and all!
