Tough challenges ahead for new year but opportunities do exist
January 1st 2010 2010 is a hard year to call.We are arguably at the tail end of the worst recession in living memory but it is very difficult to tell how long that tail will stretch out.
Already there are many commentators predicting that while the last quarter of 2009 will see the UK returning to growth, the future may hold double or even triple dip recessions as the economy struggles to establish strong momentum.
On one hand companies are now leaner and more focused than they were in 2007 but many will still be saddled with debt and will find further credit difficult to obtain.
On page 13 Hyster managing director EAME, Hans Seiger makes the point that companies still have to post 2009 figures.
When this happens, I reckon confidence could be dented further if companies don’t perform as well as expected. Higher unemployment could also hamper any green shoots of recovery.
All this aside, companies do have to keep their eye on the prize. If they focus too much on simply surviving, they will be ill-equipped to take advantage of any genuine opportunities for growth, as Simon Brown, managing director of Translift Bendi says in the same article on pages 12-13.
One thing I can confidently predict is that it will be an interesting year, Not only do we have the economy to grapple with, we have the added spice of a general election. Arguably unlike the last few elections, the outcome of this one could have a profound impact on the future of the country as the two main parties appear to have starkly contrasting approaches to the recession and public spending.
If the Conservatives win, they will make cutting the national debt a priority, with public spending drastically cut in the process. Labour also must tackle debt but are likely to increase taxation to protect what it views as essential public spending. In the economic circumstances we find ourselves in, both are high risk strategies and will be a real test of the robustness of the UK economy.
There are further challenges stacking up for the warehouse manager. The flow of legislation affecting the industry is, if anything, increasing, creating a real burden as workers are under pressure to comply and keep themselves updated.
Indeed environmental legislation in particular will have very wide-ranging impacts, from new constraints on buildings and building services such as heating, air conditioning, refrigeration and lighting, to the carbon reduction commitments being imposed on larger firms.
Technology also will evolve to reflect these changing priorities. For example, firms under pressure to reduce fleet emissions will look to emerging technologies such as hybrid engines to make bold statements of environmental credentials, as well as cut carbon and costs. This changing technology is yet another thing warehouse and fleet managers have to get their heads around.
Government tax breaks and incentives will play a big role in the success or otherwise of hybrids in the UK, but the enthusiasm or reluctance of those at the ‘coalface’ of material handling will play an equally important role.
All of this makes current problems of struggling through the snow a trifling matter! But warehouse managers can reflect on some positives as they dodge snowballs on their way to work.
Those that stay ahead of the curve on these issues will be able to best take advantage of opportunities that arise.
Simon Duddy, Editor More articles from Handling & Storage Solutions: | 
