The beginning of the end or W?

Things certainly seem to be picking up. As accountants we are quite a good barometer, we speak to a lot of client's and can see the activity. And activity seems to be going up.

Our established clients are doing OK, and even the ones that have been suffering, seem to be getting back onto an even keel. There are still a few that are struggling, but things are looking up. We have tried hard to support as many as we can by connecting clients, but it is not easy to be able to add sales and support in some of the niche industries.

I had a meeting with a local radio station this week. The finance director was a very experienced media accountant and it was good to get a feel for their progress. They sell media space direct to local businesses. Radio and media advertising is usually the first to go when businesses are struggling. He confirmed that although spending had slowed dramatically, business owners were now looking to ramp up again. He was cautiously upbeat.

I also met a potentail new engineering client. A fantastic high end engineering business that goes from design right that way through to finished product. They again had been suffering, but were beginning to see their sales pipeline pick up, as new orders and requests had started to come in.

This all sounds good. Could this be the beginning of the end of the current economic crisis?
According to our dear friends at the financial institutions: "No".

They are saying that the recovery does seem to be kicking in, but that they are expecting a W shape recovery. They think that we are in the middle of the W. If that's the case, then perhaps it's not wise to go into any investments in a big way. Product development and innovation have been long-term success stories in the past, so let's keep innovating, but at the same time, proceed with caution.

We have all learnt many lessons over the last few years. Some painful ones in some cases. Let's hope we all act responsibly and sensibly over the next few and well into the future.

I'm seeing some great clients next week, and have the inaugral meeting of an innovation group, so I'll let you know how they go next week.

Chris