5 years time.....

[kevin wooldridge]

I'm sure some must be tendering below cost just to win, which can't be healthy or sustainable, particularly as the only real way to reduce your price is to lower staff wages.

For a number of years now (well before the economic crisis of 2008) we have been told that commercial archaeology has been due a rationalisation of an overcrowded supply side. I ma guessing in its rawest form that cut-throat pricing is part of the rationalisation and perhaps it isn't such a bad thing that it's happening now whilst the market is depressed rather than when it would make a difference to a far larger number of staff.

I saw a programme yesterday on the BBC which suggested the same thing is happening in Local Government with what they described as 'downgrading'......the BBC arguement as to why people were putting up with this was that the alternative (unemployment) was even worse. However as a long term strategy it is unsustainable.....and can only be effective in the short tern if it results in a much reduced number of traders and employees on the supply side and a steady or increasing demand for the product. 5 years time I expect we won't be much further progressed in this recession that we are at present, so I confidently predict that undercutting and tendering below cost will not be a viable strategy at that point, unless the traders in question can sustain losses on trading for such a long period. But it would be interesting to speculate how many amongst the top 10 UK archaeological contractors will still be trading independently and close to their present structure in 5 years time. I'd suggest less than 5.......maybe less than 3...!!