rona
,
Wednesday, 11th of August 2010 09:54:06 PM
what is the effect of the economic crisis on a company that supplies
rona
construction materials such as steel and cement??
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EEEKKKK!
,
Thursday, 12th of August 2010 12:27:38 AM
Well the economic impact will be seen in several ways.
EEEKKKK!
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Firstly, there is the impact of cancelled contracts or defaulting debtors.
Joined: Tuesday, 4th of May 2010, 09:28:42
That is, a company or a person runs out of money, so they have to stop
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building.
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Secondly you get the cancelled jobs. For home building this can be fairly
immediate, but for larger projects the flow through may take years & the
building material supply industry may even have their recession after the
rest of the economy.
But there can be some boon as well. For example, labour supply will be
cheaper & public infrastructure spending won't be cut or may even be
expanded during a recession (many countries expand public infrastructure
spending during a recession to put money into the economy, the most famous
example of this was the New Deal in the 1930s).
Business during a recession is difficult to expand, expecially because it
is harder to find finance.
But interest rates on loans will be lower.
Purchases will be likely to buy primarily on price to save money rather
than quality.
Penguin
,
Friday, 13th of August 2010 03:40:44 PM
When the economy is down there is less building and so less
Penguin
money
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being spent. There will be less orders, probably resulting in downsizing
Joined: Saturday, 24th of April 2010, 07:45:11
at the construction company------ a law of supply and demand.
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