How robust is our economy?
Our World | On 11, May 2010
The new topic for concern is this dreaded “double dip” in the economy. Some economic writers argue that we have avoided this fate however others believe that it is due to hit after the election. Truth is nobody really knows. Every company within the events sector clearly has to maintain a cautious approach; however the safe road doesn’t always reap many rewards. Many clients are starting to evaluate their supplier’s financial status with more interest and with procurement becoming increasingly more important in the tender/ pitch process, agencies now have to prove themselves on and off the field.
The markets have already reacted to the crisis in Greece and there are bound to be more challenges on the way, especially if we cannot resolve our political stability. No matter who is placed in charge by the end of the discussions, the economic markets will be subject to the jitters as there will inevitably be a state of uncertainty with a new government. On top of all this, companies are also holding their breath on a number of key issues such as the rate of taxation in the coming years. All of this has left many people questioning how robust is our economy and can the events industry survive a double dip if it happens? I believe the answer is quite simple, yes.
The last 10 years are proof that the events industry can have a whole host of challenges thrown at it and yet it always still comes through. The simple fact is that people will always need to meet and plan for the future; companies will always need to motivate and inspire their employees to push their brand forward within their sector and compete at a higher level. Our job is to adapt and evolve to our clients needs and be innovative with the solutions that we offer.
What has the past year thrown at the events industry? Well, everything from economic recession to airport closures and let’s not forget, we’re still at war and have heightened security measures and terrorists threats, all of which have pushed every agency to their limit. The recession caused every organisation, regardless of size to check their pockets and really break down if they could afford the event which was planned for later on in the year or if the money would be better spent on staying afloat! Yet the fun didn’t stop there for the industry, the banking sector was forced under the public microscope and public perception became more important than budget and ROI. Harsh for the industry, but we have always been subject to every outside issue or influence from recessions to ash via SARS, bird flu, terrorism and war.
The reality is that the recession like the ash cloud and now the political uncertainty and BA strikes are the latest in a long and impressive line of devastating issues to affect and what is absolutely certain, is that they won’t be the last or the most severe. Sometimes I think we lurch from crisis to crisis – to quote Jaws, “just when you thought it was safe to get back in the water” or my personal favourite in these troubled times “we’re going to need a bigger boat” (apologies to those of you too young to have seen a 70’s classic).