Following the collapse of Northern Rock, individual people were bombarded every day in the media with ‘doom and gloom' predictions. Although the general cost of living rose significantly, just when we thought it might not be so bad after all the global financial market crisis hit us, and banks actually went into liquidation, a situation many thought impossible. The housing market started to decline, mortgages became harder and more expensive to obtain and there is now no doubt that in the UK we are now set up for a very challenging few months.

The word ‘unprecedented' has been used many a time in recent weeks and until some sort of financial market stability returns people will continue to feel very uncertain about the near-term future.

Unfortunately, as I write this, the situation is no better for business. The financial crisis has made it very difficult, if not impossible, for many companies to obtain the funds required to continue running their business as before. Part of the issue is the speed on which this situation hit us and this is the reason why so many companies are struggling to stay ahead. Until we see some stabilisation it will remain a very challenging environment to operate in.

Whether in a business or an individual situation, in times like this the gap between the winners and losers widens and the results become more visible. ‘Cash is King' and only the well-run companies or consumers that have that prized asset, liquidity, remain able to dictate their own strategy. Minimising debt is a necessary focus for all of us and I do think that one good thing to come out of all of this will be a return to some sort of normality in terms of only borrowing what you can comfortably afford.

Looking forward to 2009, there is no doubt in my mind that the UK will remain a very challenging market in which to do business. The vending market will not escape unscathed and my prediction is that there will be significant changes, including further consolidation and inevitably, some liquidations. But a period of big change always comes with opportunity and the well-run companies that stay focused on what they are good at, those that have created for themselves the financial stability with cash to execute on their strategy will win. Ultimately when business conditions improve again (as they will) they will be the companies that emerge much stronger.

In terms of the year ahead, I pray that no company in our industry compromises on quality. We have come such a long way in the last few years and all companies in every part of our market need to work together to continue to improve it. In the early 90's although a difficult time there was opportunity for vending to grow as companies closed canteens and restaurants. Now I think opportunity is still there, it is just different.

I want to finish on a positive note because, while being realistic concerning the economic situation we are in, we must keep a positive mindset at all costs. There are many opportunities we can go after and here is just one, coffee shop custom. For many years we have been frustrated at the price we get for a vending drink, while coffee shops have been popping up everywhere charging higher prices and stealing our traditional customers, at least for some of their custom each day. Although there is always more we can do to improve, we do now have concepts that can compete; we can provide a great cup of coffee and charge less than the coffee shop but still improve our margins significantly vs. the norm. Consumers still want quality but are looking for increased value for money. Let's go for it!

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