Recession is an economic term that refers to a significant downturn over a period of a few months, normally visible in a fall in real GDP, employment, income and production.
Recession is usually triggered by economic shocks such as a rise in oil prices, financial panics, wars or a combination of all three.
According to economists, we are at the start of a new recession which has been triggered by the COVID pandemic and by the war in eastern Europe following Russia’s invasion of sovereign Ukraine.
Most companies suffer during periods of recession, primarily because both demand and revenue fall and uncertainty about the future increases.
However, it is not all gloom. According to a Harvard University study, during the last three big recessions 17% of 4700 public companies studied failed particularly badly, while 9% flourished, outperforming competitors by 10% in sales and revenue growth.
The factor which made the difference was preparation. Companies who successfully weathered the storm where well prepared, with a very low amount of debt, improved decision-making, better workforce management and digital transformation.
Downturns always encourage successfully managed companies to adopt new technologies and increase IT investment.
New technologies can make your business more transparent, more efficient and more flexible.
According to a study by McKinsey, one of the main reasons for companies to adopt new technologies during a downturn is to improve analytics to better understand their business, how the recession is affecting it and whether there is potential for operational improvements.
Artisio allows auction companies to have a 360-degree view of their business through our highly customisable reports and analytics. Customization is one of our main USPs. We believe that no two companies are the same, and each client requires an individual approach when it comes to analytics.
The second reason is that digital technology can help companies to cut costs, automate tasks or adopt data-driven decision-making. This is how Artisio helps auction companies: our clients see about 30 minutes time saving per employee per day after full deployment of the Artisio system in their company.
Artisio AMS allows companies to get a full picture of business performance through an intelligent client and stock management system. Multi-branch functionality enables international auction companies to see the performance of every office from one centralised dashboard.
The third reason is that IT investments make companies more agile, therefore better able to handle the uncertainty and rapid change that come with a recession.
Artisio’s QR code lot up and stock management system, and tablet-friendly inventory management module allow companies to enter new stock into Artisio even when they are offline, as well as giving unlimited third-party integrations with advanced API connections which make our clients super agile.
Companies that invest in new technologies and agile business practices are able to better understand the threats they face and respond more quickly. Artisio is here to help auction companies on that journey every step of the way.