Study : Constructions and services business will continue to drop, the auto sector will stagnate
Date: 21-01-2010
Construction companies in Romania, the chemical and services ones will record in 2010 and 2011 during recession, reductions of business and liquidities, production of industrial goods, auto and banks sector will have no decreases, and in IT it is possible to have an increase. The conclusions were presented in a study by Horvath&Partners regarding the effects of the recession on the economic indicators, 248 managers of international corporations or small and medium enterprises in different domains in Germany, Austria, Switzerland, Hungary and Romania being interviewed. 19% of the interviewees were from Romania, especially small and medium entreprises. “ The companies of the construction industry, chemical industry and services will face significant reductions of the turnover and liquidities. The companies in the utilities sector, commerce and transport estimate a moderate drop of the turnover and the orders reached the level of consolidation through measures to ensure short term liquidity. We do not expect a drop in indicators” the study shows.
On the other hand, the IT sector estimates increase regarding the turnover, due to measures of outsourcing of the activity of companies belonging to different industries. At the level of the whole sector, 41% of the Romanian companies consider that their activity will be affected by the crisis for a period shorter than a year, while 39% considers that the period will be of up to two years. On the other hand, 58% of the companies in Germany, Switzerland and Austria consider that the effects will be felt for one or two years. At the same time, 73% of the companies interviewed in Romania recorded drops in the turnover, orders and liquidities, and 68% include a drop in liquidity in the future and 73% of the turnover. “ The effect is the result of the massive reduction of the turnover and orders (..)A possible explanation is constituted and the payments made with any delay on the part of the clients. The present situation is relatively similar to that in Germany, Switzerland and Austria” the study shows.
On the other hand, the companies in Romania are considered to be more affected by the financial crisis against the other three countries, and the turnover recorded a higher drop, the fact explained by the depreciation of the national currency and the volatility on the liquidity. As regards the use of liquidity in the future, the organizations in Romania considered themselves pessimistic, only 6% include growths in this chapter, and 68% estimate drops.
To overcome the crisis, the Romanian companies decided to improve the selling process ( 84%), improve management or client relations ( 80%) while 86% of the interviewed said that they informed their employees as regards the present situation without bringing any measures for the present crisis.
Immediate measures concerned the stoppage of recruitment ( 74%), limitation of expenditure, such as trainings, travels or bonuses ( 70%) and the increase in liquidity through the reduction of debts ( 64%).
At the same time, another objective for the companies is connected to the stability and increase of sales, so that 41% of the interviewed said that they developed selling teams, 40% adjusted prognosis, 38% chose to expand to new channels of distribution or new groups of clients.
