We now live in topsy-turvy land, where government ministers are attacked for trying to talk up the economy. It’s like somebody has flicked a big switch and we all have to be miserable for two years. Well, stuff that.
We now live in topsy-turvy land, where government ministers are attacked for trying to talk up the economy. It’s like somebody has flicked a big switch and we all have to be miserable for two years. Well, stuff that.
It may seem perverse for Insider to herald 2009 with the upsides of the downturn. As we all know, most of the banks have run out of cash and good companies are struggling to get finance.
But look at the bigger picture. If the economy shrinks by 5 per cent or 10 per cent, far more than economists forecast, we will just be back where we were in 2004 or 2006. Not the 1930’s. Most people working now will still be in work and most companies will stay in business.
That is no consolation to those that lose their jobs and companies that cannot refinance. Companies have to be responsible in the way they cut back and help their former employees. Policymakers should focus on helping people who want to work and ensuring they do not have to sell their homes.
For the rest of us, complaining will not help the unemployed. Everywhere you look there are opportunities. We have called them silver linings and highlighted them throughout this issue. These will hopefully provide the basis for recovery when it comes.
A chance encounter on the train from Cardiff to Paddington gave me hope. I sat down and was joined by two private equity types, returning from meetings in Wales. They loved it for two reasons. First, Finance Wales, the Welsh Assembly Government’s investment arm, is still very active. And second, the costs of setting up a business in Wales are far lower than on the M4 corridor – it would be fascinating to hear just what the difference is, by the way.
“Wales has a window of a year to take advantage of this market,” said one. “But you’ve got to shout about it more, because people in the South East don’t know what is there.” Or we could just keep counting the clouds.
Douglas Friedli, editor
Also in: February 2009
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An opportunity inside every cloud
Times may be tough, but for companies that are fast enough there are some great opportunities to beat the opposition, take advantage of lower costs and refine strategies. Douglas Friedli reports.
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Masters of their own destiny
With money in short supply, making a profit means much more than a number on a set of accounts. Douglas Friedli looks at the 50 most profitable companies in Wales and the lessons from their outperformance.