2013 Probably the hardest year since 2008
For those companies who have struggled on through the recessions, 2013 was probably the hardest for most companies.
A lot of companies could tell we were coming out of the downturn created by the austerity plan, but with austerity expected to go on for another generation, it seemed to be that companies decided not to follow the coalition lead of cuts, but rather to create prosperity and growth instead.
This took power away from the coalition, and gave it back to businesses, and for the first time in a good few years I would expect to see high street spending to hit record levels. Those companies who have struggled over the last 5 years will be borrowing to finance growth.
There is a general feeling from the general public that they are getting fed up of austerity, with people leaving companies who have imposed large pay cuts and no pay rises for the last 5 years. People who showed loyalty to their companies, have seen their colleagues with 10 to 20 years loyal service are now leaving for pastures new.
Outlook for Growth
It certainly looks as though 2014 will show growth, and unemployment coming down. I have the feeling that most people will feel there is a light at the end of the tunnel at last. Confidence will grow in 2014 in all sectors, and a lot of companies will come out of hibernation in 2014.
There will be a lot more investment during 2014, the government have pushed for the banks to give cheaper loans, and complained when there was a poor take up. This wasn’t necessarily the banks fault; it was more caution on the part of companies to borrow when there was no confidence in austerity working for anybody.
The UK had its credit rating down graded and Osborne said it was a good sign. The coalition have always said that we had low rates of interest due to their austerity plan, when in actual fact it was the Bank of England guaranteeing the governments borrowing which kept interest rates low.
There is still uncertainty about the current economical and political climate over the next few years. We have the possibility of Cameron’s promise to negotiate with the EU, and what ever the outcome of the negotiations, there is still the promise of a referendum.
Which way the electorate vote is undecided, what is certain if we come out of the EU we will all suffer. Cameron and Osborne both blamed low sales to the EU for the double dip recession, if we come out of the EU, trading with the EU will become more difficult and more expensive. The UK’s loss of its triple ‘A’ rating was a wakeup call for the coalition but unfortunately they were still sleeping and dreaming of better times.
Couple that with the possible break up of the UK, if Scotland goes down the route of independence, we will have so much uncertainty, and a lot of companies will be reluctant to expand.
The government have complained about the banks paying high salaries for poor staff performances, the Government have now decided it is time that they should have higher salaries for their poor performances.
Fashion has continued to show growth in the high end of the market. Mid priced fashion took a hammering, although we do have one exception to that with the Bonmarche revival.
RFT Express News
RFT Express are releasing new warehousing in late January 2014, with initially space for 300,000 hanging garments, and the second phase expected to take in another 300.000 with capacity to double this if needed.
Situated in Yorkshire we are the same distance from London as we are from Edinburgh, Glasgow and Cardiff. Being near to the M62, puts us equal distance from Liverpool and Hull/ Immingham with access to ferries to both Ireland and Europe.
RFT are in the enviable position of being able to multi-drop to stores over the UK, as well as same day distance runs, due to our geographical location.
I was in a buoyant mood when I started writing this article, but although I expect an upturn in businesses during 2014, I also think caution for most companies is probably going to be the underlying theme during 2014. I also expect SMBs to lead any growth we see in 2014.
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Watch the BBC video for George Brown, followed by Sir Menzies Campbell interview.
