Firms in certain sectors 'may fare worse in crunch'
Apr 25 2008
Businesses operating in particular sectors may suffer more of the effects of the credit crunch than those in others, according to the National Federation of Enterprise Agencies (NFEA).
Chief executive of the NFEA George Derbyshire predicts that those exposed to the fluctuations in the property market such as estate agents may suffer during the downturn whereas DIY firms might benefit as people seek to improve their existing homes.
Sales of luxury items such as restaurant meals, fashion, entertainment and holidays may reduce whereas those providing staples such as groceries will not experience the same kind of downturn, Derbyshire said.
Some businesses will benefit from the crunch, Derbyshire predicts. 'If, for example, people can't afford a new car, then they might turn to the second-hand market,' he says.
Next week is the NFEA Credit Crunch week and the NFEA will be running a range of tailored events such as seminars, surgeries and workshops for business owners.
Comments [1]