When will the recession ease for SMEs?

Posted: Thursday, 14 May 2009 @ 19:08

When can we expect a recovery? This must surely be the question all SMEs are asking themselves. Most have adjusted to the recession as best they can, costs have been cut, cash flow managed more effectively and surplus labour made redundant. It has been painful, profits have been slashed, if they exist at all, but we hear of more and more businesses saying that they think they will survive the recession.

But just how much longer until the belts can be loosened? There has been some talk in recent weeks of green shoots of recovery whilst the Bank of England warns that the economy is unlikely to recover this year.

So where are the green shoots and what shoots should we be concentrating on as a sign of real recovery? Well, it was the property market collapse that lead to this recession and it is likely to be the property market that will lead the recovery. And here, there are some signs that the recession has at least bottomed out.

Redrow, the construction and house-building firm has announced that it has started to commission new homes again after a year and is recruiting once more after cutting the payroll from 1,300 to 650 last year.

Galliford Try, another property development firm, issued a statement saying that it was selling houses at a similar rate to a year ago and at similar prices to last autumn.

The NHBC, which regulates the construction of new homes, said that last month saw the first rise in applications to build new homes in over 18 months.

RICS, the Royal Institution of Chartered Surveyors, said that in the quarter to April 2009, house prices have fallen at their slowest for 15 months.

Shares in the major house builders, Redrow, Bovis Homes, Barratt and Persimmon, have also risen recently.

It’s certainly too early to announce the end of the recession but it looks like things might have bottomed out and, if the housing market does continue with its gradual improvement, then this will surely have a knock-on effect for all SMEs. As to when this will happen, I’m off to gaze into my crystal ball.

Gary Cousins
Business Solicitor

Blog by Gary Cousins
Gary has been providing legal advice to shareholders, directors and business owners for over 25 years. Specialising in dispute resolution Gary is based in Birmingham with clients throughout the UK and overseas. View profile
Call Gary on +44 (0)121 778 3212 or by email
This blog is not intended to constitute legal advice, nor is it intended to be a complete and authoritative statement of the law, and what we say might be out of date by the time you read it. You should always seek legal advice to confirm whether or how any information in this article applies to your particular situation. We offer a free telephone consultation to discuss your particular circumstances.

Comments

  • There are no comments for this page - click here to be the first

Need legal advice for your business? We can help

Directors

Directors
Practical advice and legal support for company owners and directors.

Disputes

Disputes
In dispute with a customer or supplier? Get practical advice and support.

Your legal advisor

Your legal advisor
Board level legal advice without the costs of an in-house lawyer.

Speak to a lawyer

Speak to a lawyer
Thank you. Your response is great, very straight to the point! Hopefully this will bring an end to the matter. I will certainly be recommending your services as I am very impressed with the prompt dealing of this matter.
Janet Burbidge

Get legal updates

Enter your email address to receive our monthly Blog Newsletter


We will keep your email safe in accordance with our privacy policy.

Get the FREE definitive guide to solving business disputes

Speak to a lawyer

Get legal updates

Enter your email address to receive our monthly Blog Newsletter
The Law Society
Top