Last month I visited MIPIM, the leading real estate event for property professionals globally.
The event, hosted in the south of France, brings together the most influential players from all international property sectors: office, residential, retail, healthcare, sport, logistics and industrial.
It offers unrivalled access to the greatest number of development projects and sources of capital worldwide.
I went looking for evidence that the investment taps were starting to open and the construction sector could look forward to a little growth.
To my surprise, the sunshine in Cannes has clearly rubbed off on the market, as the level of optimism was quite frankly shocking.
It is fair to say the market is back – in a big way! But could this mean that there may be a wall of work heading our way as developers scramble to get schemes away in the perceived improved conditions? Is this good news?
Well yes, but there’s a caution.
Some of this enthusiasm may turn out to be froth. So in my advice: don’t suddenly staff up for an upturn. Also, perhaps don’t just say yes to any and all work, worrying that it may be all that is out there.
It is clear that now is the right time to choose to work with good clients, who will pay proper prices and allow you to build a sustainable, beneficial relationship.
If you take the cut price jobs now, you’ll be taking them forever – or at least until you go bust!
On this thought, be cautious and remember the basics of good business. More liquidation occurs on the way out of a recession than on the way in, so manage that cashflow.
Ross Sturley is principal of Chart Lane and a chartered marketer, a fellow of the Chartered Institute of Marketing, a committee member for the Chartered Institute of Marketing’s Construction Industry Group (CIMCIG), and a judge on the Construction Marketing Awards (CMA)