What will most likely occur during the recessionary phase of a business cycle?

The most noticeable changes will be that organisations/companies will look to reduce their overhead costs to remain competitive and to respond to falling demand for their goods or services. This usually means reductions in employee numbers, changes to working patterns as short time or part time working is introduced. Spending on recruitment and training will follow although this is probably the worst possible time to cut spending on training which is one of the most effective ways of gaining a competitive edge in a recession. Those with the best trained and prepared workforce will not only survive the recession but more importantly be equipped to survive and prosper in the recovery phase. Companies also look to reduce their debt levels and reduce capital spending. The recessionary phase is one of great opportunity however as firms are looking at every aspect of their business and will be open to tenders from new suppliers as they seek to reduce costs and a positive outlook and approach here can win new business.