In hindsight, many of the problems now look to have been predictable. Banks were clearly very badly managed and shareholders ignored the excesses within ‘their' businesses as dividends flowed. Governments adopted an increasingly light touch as the financial services industry drove economic growth and delivered votes. In addition, regulators deliberately, or through lack of resources, turned a blind eye. Everybody was benefiting from the flawed model and not prepared to call a halt.

It was a classic BUST waiting to happen. We will now all pay the price.

All businesses will be affected by the recession we are now in and mustrespond in a positive way to ensure long term success. Vending businesses must react to the changed economic circumstances but also manage the set of key underlying trends that are unique to our industry.

We may see short-term blips but the long-term consumer trends that are driving change in our Industry are expected to continue. The migration from free- standing vending to smaller table-top systems serving smaller groups, the decline in hot drinks sales per machine and growing environmental challenges will continue to be major factors as we move through 2009.

Responses will vary, but it is critical that we maintain and improve the quality of our offers wherever possible. Reductions in product quality or service levels will not succeed longer term. We must all seek additional efficiency, while improved value for money and quality improvements can play very important roles, too.

The need to focus on quality has never been greater. Consumers are under pressure financially but they do not want to compromise on quality. AVA members recognise this. Earlier this year the AVA conducted a comprehensive members consultation process on the AVA Quality Scheme. The aim was to consult with members to ensure that the scheme was meeting their needs and get guidance for the future. Members gave overwhelming support and reaffirmed their commitment to quality standards. AVA members will lead the vending industry out of recession.

Looking forward to 2009, nobody can predict accurately what will happen but we do know that we will be faced with a sick economy. However, as we have found in previous recessions, there will be many opportunities for vending businesses that are prepared to rise to the challenge.

It is good to see that many businesses are joining the AVA for the first time. A strong association is needed in difficult times and the AVA will do all it can to help its members. We have already reduced costs by reducing staff numbers and extending the responsibilities of team members. In addition, further training will be given to enable services to be extended.

In 2009 the AVA will be extending the portfolio of cost-effective, vending specific training and AVA ISO audit services to help businesses improve and reduce costs. A new Technical Committee has been established with a mission to help operators and the network of regional business meetings will be reorganised to better meet member needs.

AVEX 2009 will also come at a very opportune time. In June 2009 the NEC will showcase the vending industry at its best and all AVA members can benefit by getting involved. Now is the time to be promoting our products and services and AVEX will provide and excellent platform in 2009.

The next year or so will be challenging for us all. However, I am convinced that our industry will emerge stronger and better able to meet the consumer and customers needs of the future.

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