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Discuss do you think the economy will pick up after the elections?? in the British & UK Tiling Forum area at TilersForums.com.
Who is your friend...David Cameron..:lol:my frend does, he thinks it will go mad after the elections, and we have a new team in!!!, i hope he's right!!:hurray::hurray:
Is that a no then...:lol:No I don’t.
This recession will last at least another two years whilst our governments fight to stabilise our economy.
Right now we see a seasonal increase as the costs of xmas and the costs of summer are behind and ahead of our customers. The run up to spring is traditionally a time when people spend on housing.
The UK is massively in debt and getting deeper into debt, in fact far deeper than any of the other G7 nations, this means we can’t compete on equal terms against our foreign competitors. The executives who we as trades sell to will be rarer and more careful. They are not guaranteed their jobs, there is a financial food chain, and we are near the bottom. The best and the niche operators will survive but the good days have gone for quite some time.
The next lot (whether they be Labour or Tory) will introduce us all to more cost cuts and an increase in taxation – they have no choice.
So specifically what is tiling worth in the new economy?
Anything of value is generally comprised of the sum of its cost parts plus an xfactor type of value (a market perception of value, in product terms an ipod is worth more than simply an mp3 player, in company terms this is called goodwill and is very hard to measure), the value we provide as a trade (trade tillers, some trade plumbers, some trade bathroom fitters here) will be capped (i.e. what the customer is willing to pay) as it is defined as being worth less of a the total whole (a house, a refurb, a new kitchen or bathroom).
House prices are predicted to remain flat for the foreseeable future. I see no reason why the price of tiling and the amount of tiling work will not remain flat to meet that lack of demand.
Some data from globalresearch last month:
UK Debt Crisis Deepens as Government Plans to Borrow Another £510 billion
The Labour government announced in the recent Queens speech with much fanfare a LAW to halve the public sector net deficit over the next 4 years. Let’s leave aside for the moment that the Labour party is confusing calling an objective a law for purely political electioneering purposes in an attempt to place a burden around the next Conservative governments neck. The objective of the Law is to halve the deficit and NOT to pay down the total accumulating debt. What this amounts to is that the annual budget deficit of approx £185 billion for 2009/10 being halved to an annual deficit of approx £93 billion by 2013/14 which suggests Britain’s National debt is expected to increase by a further £510 billion to an approximate total of £1,300 trillion or 100% of GDP by 2013/14.
Incidentally I don’t actually think this is bad for pro-tilers (the good ones will survive) or DIYers (who will see product costs held down).
Admit it guys – if I’d had just posted ‘ no I don’t ’ you’d have PM’d me enquiring after my health.
This recession will last at least another two years whilst our governments fight to stabilise our economy.
Reply to do you think the economy will pick up after the elections?? in the British & UK Tiling Forum area at TilersForums.com
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