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Crunch Time03 April 2008Despite the financial problems affecting much of the nation, a recent report from the CBI (Confederation of British Industry’s) indicates that the engineering and panel building sectors actually flourished in 2007, despite the fumbling economic climate in which they have been operating. Many of the problems faced in other industries haven’t caught up with the engineering sector, but this could all be set to change.
To combat this, the ICM (Institute of Credit Management) has stepped in with a timely word of warning, being presented in the form of a blue information leaflet entitled “Combating the Crunch”. The sheet will be mailed to approximately 20,000 businesses in the UK which they deem to be ‘small’, and are due to arrive in the next several days.
The information advises firms to address key issues in the way they conduct business, in a bid to save them from being the next victims of this ever-growing crisis. For instance, they are advising companies to set out payment terms before entering into a contract for goods and services; suggesting that invoices are submitted accurately and promptly; and stating that companies should find out as much as they can about their potential customer before entering into any transactions - even if this means sourcing information from credit agencies.
On the outset, this does sound like very wise business acumen. However, I’m sure that many panel building companies would like to strive for this ideal – recession or not – but are simply held back by time constraints and other such ‘administrative’ delays. And perhaps the main problem, as far as the ICM is concerned, is that many of the companies they are appealing to have traded successfully for many years without having to follow these regulations down to such a tee. And in them being told to do so, at a time when the engineering sector actually does not have an overly great cause for concern (or so it would seem), it may not be taken as seriously as it perhaps should be.
For those of you who end up receiving these leaflets, please do let us know just happens as a result of the information contained within. Will your strategies take a drastic change, or will you simply have greater ammunition for your office wastepaper baskets?
Send an e-mail to simon.rowley@imlgroup.co.uk and let us know! Contact Details and Archive...Most Viewed Articles... |
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