I am not opposed to fiscal policy ideas that think economic recessions are due to a deficiency in the consumption spending and business investment components of aggregate demand. Some of the measures taken to stabilize the business cycle and regulate economic output by investing in the economy are very necessary. Regardless of how necessary they are, there is also the challenges to reduced spaces due to pandemic shutdown that is creating an impact on the building services contractors’ industry. Efforts to drive consumer spending for growth is good but if the imperatives of the strategy are not clearly thought out, adverse effects could occur.
At Transcend, our business focus has always been on human capital. That focus has helped our business weather the storm with very low employee attrition. It has been difficult to attract new talents because some people are afraid to venture out and the cost benefit effects may not be optimal for them. My hope is that as the economy steadily rebounds, we will be well positioned to leverage the opportunities for growth. A steadily growing economy will create more competition. However, our focus is on the possible external threats.
Most people are faced with a delicate balance and we are not unique to that reality. We are focused on valued partnership with our clients and how to maximize that value in an environment of rising cost and low labor demand. This has become a big and real issue for the commercial janitorial space. We support people to have more disposal income which is good for the overall economy because that will fuel higher demand for goods and services. That demand leads companies to hire more people, thus decreasing unemployment and creating an environment where companies compete more fiercely for labor. Unfortunately, our current situation driven by the pandemic has put a wrinkle in this reality. Most of what is going on is not driven by market conditions.
We in the Building Services Contractors industry have a real labor challenge. In most cases, wages are rising, labor supply is low, and our ability to adequately source and service is being challenged in ways we have not experienced. Finding workers is really difficult and it has significantly hampered our ability to grow. Having said that, we are grateful for our valued employees and the partnerships we have with our clients.