According to forecasts, the Finnish economy will slip into recession next year. According to Suomen Yrittäjie, the situation is brighter for many companies than the headlines suggest. Strong balance sheets and buffers protect companies in difficult times.
The year ending has been excellent for the touring car company Touring Cars.
Touring Cars is a Finnish family business that imports, sells, rents and maintains motorhomes. The company was founded in Kuopio 40 years ago.
Saarnio has spent almost his entire working career working with motorhomes. He moved to the company’s bread in 1989 after first working as an interpreter in Siberia. Now he manages a company of 18 people from Vantaa, where the current headquarters is located.
The pandemic brought a rush of domestic customers
The corona pandemic had become the fate of Touring Cars. It briefly wiped out the largest group of renters, foreign tourists.
– It was thought that this was it, says Saarnio.
Approximately four out of five car renters are from outside Finland. Most of them come from Germany, Switzerland and the Netherlands.
The rescue was the domestic customers, who suddenly came \”through the doors and windows\”. During the pandemic, domestic tourism grew and at the same time the popularity of motorhomes.
Tick \u200b\u200bis only 20 years old, but he already owns almost half of the company. Touring Cars is undergoing a generational change. In the coming years, the baton will pass from mother to daughter.
Economist: companies have many protections against recession
The difficulties of companies did not end with the pandemic. This year, inflation, high interest rates and increased energy costs have been a nuisance.
Next year will not exactly bring relief for companies. The Bank of Finland predicts that the economy will slip into recession, at least at the beginning of the year. Inflation is slowing down, but energy costs and the price of electricity will probably remain high.
Private consumption also shows signs of fading, as corona savings dwindle and inflation eats up purchasing power is at a record low.
Concern is also in the air on the business side. In their recent assessments, the Finnish Confederation of Business and Industry paint dark clouds over SMEs.
– The companies’ balance sheets and earnings are still quite good. Many companies have financial buffers, says Kuismanen.
– There is activity even at a time of zero growth, and no economic plug has been removed here, says Lehtonen.
He reminds that the indicators related to companies’ credit management, such as loan reduction requests and payment delays and disruptions, are at a fairly stable level.
Lehtonen estimates that the pandemic could be an important lesson for many companies about how to survive difficult times.
– We had not been able to prepare for such scenarios. Certainly, the experience of surviving it will help many people better tolerate next year’s uncertainty.
The outlook is bright in the RV business
Motorhomes are still covered by a thick layer of snow, but summer is already on my mind.
Saarnio and Tick seem to have hit a gold mine. Finland’s fresh and cool summer is now an attraction. Tourism is changing and more and more people are looking for an escape from the scorching heat of Southern and Central Europe. Saarnio talks about \”climate refugees\”.
Domestic tourists have also come to stay. Next year is expected to be record-breaking: the goal is to increase turnover from 10 million to 15 million euros.