Recently, there has been some talk of the risks of a “double dip” recession occurring in 2010. Economists’ assessments vary. Stated risk factors include: US residential real estate issues. Many mortgages continue to be ‘under water’, with the percentage expected to his 50% or more next year. Emerging US commercial real estate defaults. Rising oil [...]
The British news carried the following quote today:, ‘…Britain’s economic recovery will be “feeble and fragile”…’, by shadow business secretary, Kenneth Clarke. Forecasting organizations, such as the National Bureau of Economic Research and Global Insights, are projecting slow growth, while others worry about a decline back into recession after current stimulus programs wind down. As [...]
The first recovery, the hoped for “V shaped” , has been the typical pattern of post WWII recessions. It is characterized by rapid growth following stabilization, typically in excess of 4%. The following is the pattern of growth for modern recessions: As the economic contraction leaves the economy below its full-capacity potential ,industrial production, [...]
In this part of the series, I want to set the stage for further discussions by reviewing business leaders’ expectations on the shape of any recovery. Over the past few days, we surveyed a number of business professionals on what shape they saw the recovery taking in their industry? We received over 275 responses across the [...]
Let’s begin this discussion with an overview of the five types of recovery patterns seen in modern economic times. First, there is the “traditional” V shaped recovery. This has been the pattern seen in past recessions. Growth occurs almost as quickly as it slowed down. Credit markets recovery rapidly, followed by a mix of business & [...]
Recently, we conducted a LinkedIn Poll regarding the impact of pricing strategy in current business markets. With 166 responses of senior management, 45% felt they were effectively managing price & volume; 20% chose volume over price; 13% chose price over volume; 12% felt they had less control of price; 7% felt they had less control [...]
