Tale of two markets

11 October 2022

It can be hard to see the overall economic picture given the sheer number of unexpected financial and fiscal developments recently, as well as mixed messages. 

From chancellor Kwasi Kwarteng’s mini-budget on September 23 which led to maxi-turmoil in the markets, to the somewhat contradictory factors of recessionary forces on the one hand, yet near-record employment levels on the other, it’s difficult to understand the present, let alone forecast the future. 

As has been said before, if we are in a recession, it is one like no other. And there are still openings and opportunities for tool hire firms and other businesses. 

This contradictory economic environment was reflected in nine-month results issued last week by Marshalls, the landscaping and building materials company. 

The bad news was a reduction of six per cent in Marshalls’ landscaping products activity compared to the previous year, driven by reduced demand from private customers who had previously created something of a boom during lockdown and furlough periods. This led to the company to revise its profits forecast for the year downwards. 

However, Marshalls' business products operations for the commercial sector reported quite a different picture with revenue growth of some 22 per cent and business growing in the third quarter, albeit at a slower rate. Also, its Marley business specialising in pitched roof systems delivered growth of nine per cent compared against 2021. 

So despite the economic turbulence, certain markets remain strong. Those businesses that are flexible enough to steer towards them will benefit accordingly. 

Photo: Marshalls