What are the reasons for the current economic difficulties? According to Brian Tustain, CEO of the Associated Vending Services, there are the significant rises of energy prices which make the costs of major business overheads unpredictable, the lack of business confidence and supply of funding capital, and the instable word currencies.

At the recent EVA Annual General Meeting, Brian pointed to the Northern European volume sales decreasing by between six and ten per cent in the quarter since September 2008, before highlighting the more specific factors of operator costs spiraling uncontrollably, redundancies in workplaces meaning fewer users, and some small businesses forced to run without adequate financial planning and forecasting.

But in spite of the bleak outlook, Brian insisted that every crisis is double-faced: it also can generate opportunities which in the end could strengthen operators' capacities. Many large workplaces will be seeking to replace canteen/catering by vending machines. Lower sales volumes could also encourage increased margin opportunities.

How can vending survive and prosper? The best antidote to the downturn is to focus on better management of customers, cash, overheads, suppliers and staff.  Brian was very specific when he alerted his audience to the necessity of improving logistics, using new technology (eg effective telemetry), optimising credit controls and financial forecasting and reviewing payment terms and conditions with suppliers.

New products are also key to a changing social environment and consumer behaviour. It remains to be seen if ‘well-balanced' food, snacks and beverages might provide opportunities to cash in on this otherwise expanding market. In any event, if there was a time to think anew about the range of products in vending machines, then this time might have come.

However, the single most important advice Brian had to give was to manage human resources carefully. The staff can be both the biggest asset and a potential liability, hence the need to motivate, train, inspire and value them.

The message at the EVA's Annual General Meeting was not to panic and to remain positive. The next year will be a tough one but there are business ideas out there which could contribute to making the vending industry one of the fittest to survive and prosper.

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