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So as we move to the end of the second quarter of 2009 a number of points have become clear in the market of FMCG. In previous Blogs we discussed the fact that it’s not all doom and gloom and people will always need to eat, well this hasn’t changed but the speed of change is becoming more apparent.
First of all the good news. We’re now seeing signs of programme and project budgets being signed off creating a focus on genuine Interim Managers for delivery. The purse strings that we predicted for the start of the new financial year are beginning to loosen. The requirement to differentiate between the “professional interim” and the “candidate between” has never been more pronounced and clients are actively seeking people who can demonstrate this difference quickly and effectively. The current focus on projects has been around operational efficiency, value engineering and supply chain.
A question I’m asked almost every day is should clients be using the current climate to take business off their competitors or to just to hold their own. Well I’m not seeing much with regards to commercial investment from an Interim perspective, though companies are forming commercial briefs to ensure they hold their position with increased challenges coming from the retailers. I can see this trend continuing until we line up for the golden quarter where clients may look to make a point of difference but surely they must be already thinking this?
With regards to the slow news, the business of turnaround hasn’t yet caught fire. I’ve had lots of conversations over the last few months about how the government’s actions have affected the appetite for businesses to seek funds focused on turnaround. Predictions from senior turnaround professionals have ranged vastly as to when this market will start accelerating and I’d be keen to hear your thoughts and predictions on the market as we head into the summer period.
Let me know where you think the biggest challenges are going to be and lets discuss it. I look forward to reading your comments.
Simon Gough is Head of the FMCG Practice at Interim Partners.
August 30th, 2009 at 11:45 am
I would agree with Simon regarding an upturn in activity for ‘fill the gap’ Managers. This is possibly a result of the financial climate getting better. Wth regard to projects and turnround manager requirements I am hearing very little. However, I am hearing alot about businesses being put under alot of pressure by their customers, although most of these businesses do not appear to be planning to arrange for short term help to over come the issues. Those businesses that have responded have come out the other side well respected by the retailer so it has been worth the investment in the skills and knowledge a good interim brings. Those that have not invested wisely and have tried to muddle through have lost business and seem to have accepted it.
In the ambient sector there seems to be a big push from the main UK retailers to greatly improve standards and as such turn around skills are needed. Although I am seeing very little evidence of business taking note of this pressure, I would expect to see the bigger companies recruting very soon. If not the push for Christmas will come and then there will be the traditional push to reduce costs straight after. So unless these businesses move within the next 4 to 6 weeks they will miss the boat.