James Norvill – Director GD Environmental Services and winner of BCC Welsh Entrepreneur of the Year 2008
I would like to take this opportunity to wish everyone a happy new year and a prosperous 2009. With difficult economic times ahead it will be a very interesting to see the extent in which businesses adopt a green approach to business planning during 2009.
There is no doubting that the recession has had a significant effect on all business sectors across Wales. Many businesses have been forced to cut costs and downsize where ever possible to assure their long term survival which has subsequently caused the dramatic increase in unemployment and noticeable decline in the value of the pound on the world stock exchange. But with less disposal income and foreseeable economic uncertainty will 2009 witness the first slowdown of the highly promoted green agenda for businesses in Wales?
The government’s national drive on recycling has increased pressure on businesses to go green. Through providing grants to incorporate new green technologies into business practise and offering free green advice to organisations to help \lower their carbon footprint and embrace a greener future has proven to be an enormous success over the last 3 years with businesses accepting change and seeing environmental responsibility high on future business plans. This past year has proven that being seen as a “green company” and reducing costs through investing in green technologies has brought many benefits to businesses through increased trade and lowering operation costs. But through the sudden downturn in the world economy and with many businesses struggling to make sizeable profits, Im worried that 2009 will be the year where the green agenda now becomes more of a luxury than a necessity for most SME’s.
Its no secret that this year for many businesses survival and sustainability will be top priority. For this reason it wouldn’t surprise me if directors overlooked the need to invest in a greener business model and lower their carbon footprint if it put their business at risk or if that money would be best saved to combat the unpredictable economic circumstances that face many business this year. Its only common sense to think that during difficult economic times consumer spending trends change with lower priced goods preferred to the extra spend on a greener product or services and that what concerns me. Could this be the demise in the need for business to go green if the consumer no longer wants a green product?
The credit crunch has created a dip in consumer spending within many green products and services most recently the organic goods and services industry over the Christmas period. The drop in spend on higher value products like organic food in Wales has proven to have a big effect on the amount of farmers that are reconsidering a move into the organic food industry. This is one of many examples of a significant decrease in the value of going green to businesses and as the European Unions continues to increasing pressure on local government to increase recycling and promote the use of renewable energy resources within businesses in Wales, the government has a very difficult task of assuring that going Green will not be a bad move for businesses in the UK. I believe this will prove to be a very difficult task unless the economy and consumer spending improves in the not to distant future.
For more information on GD Environmental Services please call 01633 277755 or visit www.gd-environmental.co.uk
