The recession and the return of quality?

Apr 7 2009 by Neil Warwick, The Journal

LAST week a client raised the question as to whether some of the signs of improvement in the economy were a false hope. There is an economic theory that states that there are often false hopes before recessions deepen.

With a global recession as unusual as this one, it is difficult to apply one economic theory over another. The main difference between expert economists pronouncing on the economy and the average woman or man in the street is that the economists make an educated guess.

In order to see if any positive signs can be identified, it is important to look at historical trends. One such trend when coming out from a recession, is that it is normal to see the emergence of new technologies, such as electrical vehicle technologies for example. After every major recession there are also serious competition law prosecutions and we often begin to notice improvements in quality as well.

A clear example of this was during the early 1990s when the rapid improvements on the East Coast Mainline under the stewardship of GNER were clear for all to see and effectively meant that anyone commuting regularly to London would use rail as a first choice.

Last week, for a variety of reasons, the only way to get to London was to use British Airways and fly into the much criticised Terminal 5. However, the first surprise was the lack of queues at Newcastle Airport as check-in is now a self service computer. Even better, genuinely helpful staff are at hand to help the technologically illiterate use the check-in computer. The ease of use from check-in to waiting for a departure in the complementary and extremely comfortable BA lounge at Terminal 5, was pleasantly surprising as was the exceptionally helpful and customer focused attitude of the BA staff at both airports. On speaking to one, their attitude was explained. The airline industry is suffering at the minute so everyone has to try a little harder.

Although it is not possible to predict whether or not some of the improvements in the economy are a false start, one thing is clear, quality propositions will allow companies the opportunity to gain patronage.

Neil Warwick, partner at Dickinson Dees