Efficiency Vs Resilience

 

Over the years our economy has been operating with one key focus in mind, efficiency, keeping profits high and costs low. Businesses ordering goods just in time, to keep storage costs low, importing from where its cheapest and not worrying about anything going wrong.

 

In the last 2 months with Covid-19, we have seen some adverse effects of these efficiency models which have in many cases led to a reduction in resilience, the ability to deal with change. Supermarkets have been running out of essentials like sanitisers and toilet paper and hospitals running out of equipment including PPE. Other businesses have been adapting well with working from home, setting up their computers and using programmes like Zoom and Microsoft Teams for communication.

 

It seems that after the pandemic, businesses might start taking on a different approach, taking resilience into consideration more. For many businesses this will mean creating more localised supply chains which will mean that a lot of jobs that are currently being out sourced will come back to the UK, increasing the demand for hiring here and making our businesses more resilient for the next time a crisis occurs.