Don’t Turtle Up

Given the high probability of recession, business leaders are facing a decision of whether or not to turtle up and stop all activities toward building for the future. While the natural tendency in uncertainty is to stop, the media and pundits are also telling you to stop. However, since the recession is expected to 1) occur, 2) be medium to severe in nature, and 3) be relatively short in duration, this is not the time to stop. As with prior recessions, as we emerge from recession, the world after is unlikely to resemble the one before. If you do not continue to press on, your competitors will. As a result, you might enter the recession as a leader and emerge near the bottom. Studies have shown that 57% of public companies that enter a recession either are no longer a public company (bankrupt, acquired, became private) or did not achieve pre-recession sales and profit levels until some point further than three years after emerging from recession.
 
Where do we go from here? While most agree the global economy is heading for a recession, how should we react? Yet with growth expected to slip even lower after a sharp slowdown in 2022, it's a possibility. The International Monetary Fund projected in October that global growth will fall to 2.7% in 2023. The US economy is likely to eke out some marginal growth in 2023, but this environment will require business leaders to make tough decisions. Clarendon Partners has created a series of survival tips to support business leaders in the coming year. To talk to us about how we can support your business as it makes changes during this time, contact digital@clarendonptrs.com and be sure to follow us on LinkedIn for more posts like this.