Recession or resilience?

4 September 2023

Against a backdrop of rising interest rates, slowing house sales and reports of redundancies and restructuring measures at some contractors, the R-word of Recession is being heard again. 

Perhaps it never really went away. In its earliest days, this blog discussed the economic impact of the Covid lockdowns and the trajectory of the subsequent recovery. And a string of unprecedented events like Russia’s invasion of Ukraine and spiralling energy costs have sustained a mood of unease and uncertainty. 

Yet many businesses, including hire companies, have vacancies that they find difficult to fill while others are expanding or looking to make acquisitions, suggesting a more positive outlook. 

This again shows that any economic turbulence affects some markets and industrial sectors more than others and that it is unwise to rely on data that makes a global ‘macro’ assessment. Indeed, only last week revisions to past growth figures showed that the UK recovered from the pandemic lockdowns faster than initially thought. 

Some reports highlight a slowdown in public sector investment, yet there is much work that needs to be done. This ranges from repairing potholes to removing the RAAC (reinforced autoclaved aerated concrete) structures deemed to be potentially unsafe at more than 100 schools, as the government hastily announced last week.  

Contractors will need to be appointed for work at these locations and at others, since the RAAC is material can be found at many hospitals and other public sector facilities. 

Hire companies are flexible, have diverse customers and can react quickly to serve those markets showing strongest demand. This enables them to show greater resilience – and that’s another R-word that the industry should stay focused on. 

Photo: Mathieu Stern