The world economies have been through an economic crisis that is unprecedented in the lives of most managers … certainly the executives I know have seen nothing like it.
The bad news AND the good news about our economic system is that so much of it relies upon sentiment … an intangible called “confidence” can mean the difference between a strong economy and a weak economy. Right now there are a lot of people erring on the side of caution, and I can understand that … but we need to introduce confidence back into our world!
The impact on companies has been dire … but in the same way that nature, in the wild, “culls” the weak … so too does this kind of economy.
- Weak, underperforming companies have gone under.
- Companies have trimmed their fat.
- Underperforming employees (along with good perofrming employees) have been laid off.
The net result is that those companies left are generally the stronger performers in their niche and they are stronger still, for having survived this recession. The “culling” has taken place and NOW its time to get the ball rolling again.
- Companies with good “fundamentals” are under valued, providing a good opportunity for investors.
- The price of oil is back above $60 which is healthy for the oil industry but not yet back in the $150 range which can have a tough ipact in other ways.
- The Canadian dollar is strong.
- Money is relatively inexpensive.
So … what is stopping us from accelerating into a full recovery? CONFIDENCE.
What needs to happen now is that market leaders need to “get in the game“! They need to invest in growth … spend some money on those technology projects they have been putting off, pull the trigger on that M&A activity, start up the big construction projects. Governments need to spend … instead of talking about stimulus packages, they need to DO SOMETHING.
We are very close to a recovery, I can almost smell it! Tell everyone you know … ITS TIME TO SPEND!
Let’s get the party going!!!!