We are officially in a depression, according to recent news. So here in the bunker at BlackChilli Towers I have pulled out the 12 bore, corralled the wagons and am taking a tip from John Wayne. We are stocking up on ammo, creative juices, innovative ideas, out of the box lateral thinking and are getting prepared to fight tooth and nail to support our clients.
A bit extreme, I hear you say. So be it, but it’s a bloody good bit of creative writing if I say so myself. The point is that I am prepared to fight to uphold the reputation of my clients and want to see them through these tough times.
So what can I pass on to you, dear readers, that will help you not only survive the tough times ahead, but seek opportunities in this market? Yes, seek new opportunities. In every market there are opportunities to be had: you just need to look for them.
Seeking opportunities will form part of our client survival strategy in the coming year. We want our clients to be seen as safe pairs of hands into which prospective clients can entrust new business. The current fear is that handing projects to businesses without checking on funding or the suitability to transact that business will create reluctance to trade.
On 10th March Shropshire based Wrekin Construction announced to its staff that it had gone into administration, with a loss of over 600 jobs. Conservative MP Mark Pritchard said that the firm was forced into administration because of its bank's "inflexibility" in releasing funds. Pritchard commented, “This is a long-standing and successful company with a large order book which has been driven into administration by the inflexibility of RBS. Some of the blame has to fall on the doorstep of 10 Downing Street, given the government's majority shareholding in RBS." (Source – ContractJournal.com). Wrekin had a forward order book of £40 million, but wasn’t allowed to trade, due to lack of support by the bank.
There are many businesses out there that we deal with who have saved for a rainy day. Now is the time to tell the business sector that you have that umbrella and you are a safe pair of hands in which to entrust precious projects. As sectors contract, the number of companies tendering for that declining pot increases. Margins get tighter and companies will bid for works at cost. This is certainly my memory of the last recession in the construction sector.
I have said before that companies that hold their marketing budgets in a downturn are the ones that fare best. It is a well documented fact, and I have touched on this in the past, that brands that increase their spend in a recession, when competitors are cutting back, can improve market share and the return on their investment. There will be pressure on budgets but the smart money will still be there.
BlackChilli believes PR will play a major role in advising businesses on how to navigate very difficult, and for some, uncharted waters. There will be complex messages to deliver. More than ever when times are taxing the media needs substance not fluff. Ask yourself – have you got substance?
I’ve always believed that PR thrives on the ideas and enthusiasm of its young. PR depends on the zeal of the youthful practitioners within the industry. However, when the economy is in ‘bust’, business must turn to experience. I did some maths the other day and now in my 50 something year, I have 20 years’ experience in PR, and 36 years working in, or being associated with, the construction industry. So I know I have a safe pair of hands. Have you? Chief executives will need the knowledge and experience from PR people that were around the last time. They will need strategic counsel and there will be growth in corporate PR and in crisis and issues management.
In order to get the most out of your PR resource, you need to make it a two-way relationship. Many PR campaigns fall down on senior people not dedicating enough time to their PR campaign. In a recession, brands who continue to see the importance in PR will need to make sure their investment is working harder for them, which means devoting more time to it.
Media relations remain a very cost-effective way of communicating with a mass audience. Research has shown that it is typically ten times more cost-effective than advertising and 300 times more effective than direct marketing. But remember, PRs cannot pretend to be you - and so CEOs, etc, will need to make more time to engage in conversations about their brand.
Lessons to learn from this:
- Invest time into your PR campaign.
- Ensure your audiences know you are ready to do business and that you are a safe pair of hands.
- Manage the expectations of your clients.
- Keep communicating, telling your clients ‘you are here’.
- Publicise your contract wins – everyone wants to do business with a winner.
- Look for new opportunities for your staff, products and facilities.
- Lastly - Keep the faith. You will be a winner
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