Fine Words Need To Become Action
Counting the cost of the coronavirus pandemic to families, businesses and the wider economy remains a work in progress. It will be years before anyone is in a position to produce accurate final facts and figures – by way of a parallel, experts are still arguing over the financial and social consequences of the financial crash 12 years ago. But, with the virus apparently in retreat as I write, it is essential that we start thinking about what could and should happen next with recovery.
If there is any good to come out of this grim episode it is that many of us responsible for running businesses – and, dare I suggest, even those in charge of running the country and individual Government departments – have been forced by recent events to examine how things were done historically and, more importantly, how they might be improved in the future. It’s just a pity that it has taken a nasty disease to make us all take stock of our structures, working practices and attitudes.
In this context, but closer to home, I note that the Rail Supply Group (RSG) recently commissioned independent market research to establish the health of the rail supply chain. Not surprisingly, the study confirms that the vast majority of businesses have suffered damage to revenue, demand and productivity.
Cash flow is identified as a significant barrier to recovery and so it is both understandable and encouraging that Network Rail’s mechanisms for speeding- up payments have received widespread support from suppliers.
What has particular relevance in my view is the number of respondents making a plea for a more planned approach to spending so that they, too, have the confidence to build for the future. Bidding for work is an expensive business and, while we all know that plans sometimes have to change for good reason, it can be particularly galling if invitations to tender are withdrawn after we have already bid. We are also realistic enough to know and accept that we can’t win every contract for which we tender. However, it would be helpful if a reasonable degree of certainty could be injected into the process.
We would all like to ‘bounce back’ so I look forward to the RSG’s recommendations, which I hope will include actions to sit alongside the fine words.
By Angus Dent – Chairman of RSP