The beginning of October was a landmark moment for the UK economy. The latest International Monetary Fund (IMF) growth forecast left George Osborne rubbing his hands with glee.
It’s not hard to see why this is the case, given that the report predicted the stifling of economic growth on a global scale, but upgraded the prospects of the recovering UK market.
In fact, the projection of Britain’s fortunes saw estimated growth up half a per cent compared to the last assessment six months before – the highest increase of any state included in the report.
But if we wind in this highly globalised view of the economy, what are the effects going to be on more of a grassroots level? And how should the UK’s businesses react so soon after they have seen their fortunes stabilise?
These kinds of forecasts certainly add value to the UK market – something already being felt as the newly reinvigorated manufacturing sector benefits from widespread investment from high-performing developing countries.
But across the board, firms are probably sitting around the table trying to work out how best to capitalise on the influx of trade Britain is enjoying. It goes without saying that the first thought in the minds of many will be to upscale. After all, there is no point having floods of potential investors banging your door down wanting to join forces, if you don’t have the capacity to accommodate them.
Extra storage space, increased manpower and greater purchasing ability are all measures that will help achieve this. But as everyone knows, despite Mr Osborne’s trademark self-congratulation, the empire can crumble again just as quickly as it was rebuilt. Firms shouldn’t let this deceptive depiction of a rosy future lead them to bite off more than they can chew.
Expansion should be implemented on a gradual basis. Doubling capacity with an astronomical lease on a huge new warehouse could prove foolish at such an early stage in the recovery. In essence that’s how the trouble all started in the first place – a greed that led to both businesses and consumers thinking they could operate beyond their means.
What are the best measures to take to ensure a perfect balance?
There are a number of services available that make the transition smooth and manageable. Firstly let’s talk in terms of a premises – the bastion of any business producing physical goods.
During the first two years of economic growth at least, it is worth considering temporary structures like the ones found here. They could allow for a gradual increase in capacity that will still see you retain the ability to go back on your decision if the boom isn’t as seismic as first thought.
These can come in a range of forms including retractable canopies, prefabricated ‘DIY’ buildings and temporary warehouses available on a short-term basis.
In such uncertain times, facilities like these are themselves on the up. Businesses are looking for efficient and reactive solutions that will help them ensure their next move will be a success.
So if you are a business owner caught in two minds, take a step back and survey your options because it may not be quite as black and white as you think.