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A “Temporary” Solution To The Economic Crisis

22 October 2008

Business expansion given a temporary solution in economic turbulence.

Temporary buildings specialist, Spaciotempo is experiencing an increase in the demand for their high quality bespoke temporary building solutions. This is due to companies seeking to postpone non-essential expenditure such as expansions in the recent turbulent financial market. The combination of slower economic expansion, economic uncertainty and a decline in capital investment in buildings, plants and machinery, means organisations are adopting lower risk growth strategies such as the use of temporary buildings.

Spaciotempo temporary buildings are widely used in the manufacturing and logistic sectors providing; additional production, storage and handling capacity. Temporary buildings offer many of the amenities that permanent buildings do such as; heating, lighting, flooring, glazed doors and windows and the same safety standards.

The bespoke building solutions offer a convenient and cost- effective answer to the current economic climate, allowing companies to proceed with business and not lose much needed man hours. Spaciotempoâ managing director Mark Taylor, comments: “British business faces a tough year and few companies are prepared to speculate to accumulate. At the same time, the need to quickly and cost-effectively capitalise on increased demand has never been more crucial.   “Investing in new premises or permanently expanding existing facilities presents a risk which, in the current economic climate, most organisations are simply not prepared to take. Whilst understandable, this potentially inhibits their ability to take full advantage of any new business opportunities.

The “Credit Crunch” has hurt the manufacturing sector, with 9% of companies predicting output will be constrained by credit or finance in the coming quarter. The Confederation of British Industry’s survey discovered this is the highest figure since 1975. Ian McCafferty, the CBI's chief economic adviser, said: "Finance has not been a big issue [for manufacturing companies] in the past, but for the first time, in this survey, we see conditions have become more difficult.                            

"The sharp falls in orders and output show the slowdown in the UK economy is now spreading to sectors previously resilient to weakness in the banking and housing markets."

The recent slump in housing and building production has triggered an effect on the rest of the economic market. Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors, said: "This is now having a meaningful impact on consumer spending and jobs. It has, as a result, played a large role in pushing the economy to the brink of recession.”

In addition to the financial risks associated with capital investment projects, organisations are also at risk from factors beyond their control, such as fire, flood or storm damage. With the winter months drawing in and predicted bad weather ahead, temporary buildings also provide an effective disaster recovery solution, allowing essential activities to continue in the event of an emergency.

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