telecoms sector says impact of recession is worse this time than in 2001

It was said that during the last recession over 1 million people left the communications industry. I know one person, for example, that decided to run his own Post Office branch. I don’t have any stories this time round – I’m too busy. However the results of a survey I just read from Cobalt Corporate Finance suggests that the industry thinks it is worse this time round.

Of over 100 UK mid-market businesses in the Technology, Media and Telecoms industries questioned, over 50% indicated that the impact of the recession has been worse than the 2000/2001 downturn. This compared to 35% in 2008 survey and 15% in 2007.

The good news is that in 2010 employment levels are expected to increase at 45% of companies surveyed. Only 20% expect a decrease compared to over 50% this time last year. Positive sales growth in 2010 is forecast by over 70% of respondents although the optimism of last year’s survey may have been misplaced (nearly 60% forecasting growth in 2009).

I think that if you have come through last year unscathed you are in a good position to take advantage of opportunities in 2010.  Having said that, experience has shown that it always takes longer than you think so a strategy that involves taking on more staff must be executed with great care.

PS I have no idea if the Post Office branch is still open.  He could have picked a slightly safer alternative career in my mind!

Published by Trefor Davies

Liver of life, father of four, CTO of trefor.net, writer, poet, philosopherontap.com

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1 Comment

  1. Definately do not think it is bad as last time. It feels worse as the telecom cycle coincided with the economic cycle. Kevin

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