An eerie calm has descended in the UK technology channel* as company failures stabilise and the recession lifts, but with legions of undead corporate corpses stalking the land, an insolvency storm could now be brewing. That was the prognosis of experts in the credit and insolvency sectors, a week after UK GDP figures from the …
Dont just expect the small firms to end this way. A hell of a lot of larger partners in similar positions. The next 12 months could see some well known names hit with major cash flow problems. I see boom times ahead for administrators.
Problem is then what sort of channel are we left with. Even fewer players rarely works in the customers favor.
Respite comes with more pain
Banks and lenders have been more accommodating on debt and less eager to put the boot in. What remains fascinating is the transition to services, something that requires time, patience, money and planning and all four are often missing in the case of most traditional VAR's and indeed wholesalers.
Pressure point is margin and this in traditional reselling activity has declined horribly in recent years and an ability to borrow against a strong balance sheet, core to fundamentally re-shaping your business or planning for growth is lacking in far too many.
There will be more casualties as we move into 2014 and some will be big, like 2e2.