It’s Memorial Day Weekend in the United States. A time of year when the school year ends, the summer begins, and for many businesses, there is just one month left in the 2nd quarter and the first half of the year.
As many Americans get ready for the long weekend and the chance to get some well-earned downtime with family and friends, the storm clouds of a significant Recession are formulating on the summer’s horizon. By definition, a recession is two consecutive quarters where the gross domestic product (GDP) contracts. The GDP is the sum of all outputs of products and services consumed by an economy. The drivers of the coming recession will be easy to identify as they typically are the function of multiple factors. The recession of 2022 is going to be driven by staggering inflation, the ongoing supply chain disruptions, the continued global COVID pandemic, and the hot spot geopolitical issues that rise up every week.
Many business leaders will take the easy way out and start cutting budgets to make up for lost revenues. By doing this, they will be able to point to the fact that they still made their profit numbers. But, at what cost to the future? Great, you cut Sales, Marketing, and R&D expenses in the short term, but what is the impact in the long term?
