Well Rounded View
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Scottish Business 2010 - Recovery with a Difference
There is something inherently Scottish about welcoming in the New Year, sweeping out the old and optimistically looking to the future.
In business terms 2009 will be one that many will remember but perhaps would prefer to forget. A year in which any lingering belief that “the only way was up” was cruelly exposed and those old guests of “fear” and “greed” demonstrated that their role at the party was not passive. And for the man in the street the markets have gone from something you might read about to something which is real– for some the value of a money purchase pension has slipped in value while reduced demand has put jobs at risk. The higher public sector borrowing requirement also hits home when those in employment are asked to pay more for the services we consider essential.
The party was good for many while it lasted and both personally and corporately we loaded up with debt – and the after affects of this will unfortunately linger long after the music has stopped. If we are going to be realistic we might have to accept that the flamboyance was at least as large in Scotland as any where else and as a result, the cold turkey impact might be worse.
Those still nursing an aspirin may have given up the will to live…. or perhaps just the will to read this article anymore, but bear with me.
The past eighteen months have undoubtedly been tough for many and there are no quick fixes – no absolution for overindulgence at both a personal and a corporate level. But the future is not bleak…….and I will tell you why.
For a start we have within our Scottish shores some great examples of solid robust businesses – at the forefront of engineering, leading technology in oil and gas, wave and wind power, bio sciences...to name but a few.
We are guardians of one of the richest natural tapestries in the world to support a vibrant tourism and leisure opportunity.
There are a number of good solid businesses perhaps carrying too much debt resulting from years of acquisition where a structural financial fix may be required. But the key is the business fundamentals are there and robust. The medium term future may be a bit more boring. But why should boring solid organic growth be bad – after all, we’ve seen the alternative in its raw state. Times of crisis bring rapid change however that change can be for the better.
Most important of all, I sense that we are rediscovering real values – personal and corporate (not that they should really be any different). I detect there is a wish to do and be seen to do the right thing.
My only hope is that this fall back to real values does not get pushed aside as we re-awaken to a return to a growing economy. We owe it to the next generation to ensure that this is not the case and that we can deliver a sustainable legacy. I for one enter the year with a realistic view that there is still pain in the system but if we build on the real nuggets that are part of our Scottish business community and we keep values at the forefront of our actions, then we can genuinely build a better but different future.
Bruce Cartwright
Head of Business Recovery Services, PricewaterhouseCoopers LLP in Scotland
View Bruce Cartwright's Biography
View Tods Murray's Recovery and Insolvency service
Contact Alistair Burrow, head of Tods Murray's Recovery and Insolvency team