The bubble is inflating.
Blow it, guys
To make it burst!
Do you remember this popular children’s song-play where all participants hold their hands forming a large circle and gradually expand the circle to the point when they get far enough and let their hands go. Boom!
Some economic analysts claim that we are facing a new economic crisis, others say the crisis will continue some 2-3-4 years more and yet others predict gradual development and bright untroubled future. But the facts are self-evident. There is a lot of construction and a lot of work for furniture manufacturers, even for those who operate only in the country. There is a serious shortfall in free and well qualified labour force at all levels, companies compete and “trump” each other for employees, salaries go up (unfortunately, this does not have positive impact on the quality and quantity of the work done), the people’s purchasing power is growing, the interest rates on deposits are exceptionally low just like the rates on loans and people actively purchase property. They invest in offices, flats, all type of real estate. And construction work expands… How long will this continue? We can remember what happened in 2008.
The reasons behind economic crises are a mixture of a host of external and internal factors and we can impact just a few of them. However, we can also do something apart from working hard and being reasonably cautious. We have to try to be competitive. If we want to survive, we have to manufacture high quality products. Labour productivity is what creates actual products. According to the definition given in textbooks “Labour productivity is a function of labour organization, the entrepreneurial characteristics of those running the business, the introduction of high technologies, workers’ skills and their qualification and expertise.” Although we observe a strong deficit in the last factor, we can try to compensate with the others. Good luck, colleagues!
At the start of 2018 we wish you health and steady business!