There is no clear-cut management roadmap for today's recession, as it is unlike past economic slowdown in several ways. This recession is deeper than past recessions. Job losses are a more significant component of this recession, with very high unemployment rates.
Consumer spending is not simply growing more slowly, it has dropped significantly and is unlikely to return to prior levels in the foreseeable future. Consumers' finances are weak, and the spending contraction is a reflection of a change in consumer priorities in favor of saving and cutting debt. In the long term, this will be good for the economy, but in the short term, it will slow recovery in an economy that is seventy percent driven by consumer consumption.
Business consumption is weak as well, causing the recession to affect more business sectors than past recessions. The credit crunch i dampening recovery by slowing access to capital for solid personal and business transactions. For all these reasons, the Great Recession is a different animal than past recessions, and the management techniques required to survive ant thrive in this new economy are different as well.
To remain stable in tumultuous economic times, owners and managers must focus on their core competencies, honing efficiencies yet still pursuing the most promising opportunities.
(From page 115 of the 2010 Self-Storage Almanac)
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