Now that the whole economy is ‘servicizing’, Financial Times highlights a study on how the crisis is impacting the service industries.
"According to ISM, only three services industries - utilities, educational services, and professional, scientific and technical services – registered growth in January, with the remaining 14 experiencing a contraction. These included construction, financial services, healthcare, and agriculture. Overall, it marked the first contraction in the ISM’s survey of the services industry since March 2003, when the Iraq war began"
It is interesting to see that the services that will sustain growth are related to the knowledge economy (with the exception of utilities) and innovation, and the shrinking ones are related to dispensable activities or activities that support the growth of the economy or are the symptoms of extra money to spend by society (better spaces to live, better health, better and healthier food,etc.).
This study resonates with the experts who are encouraging companies to invest more in innovation now in order to soften the landing and speed up recovery. Will the companies listen?
Picture: Olafur Eliasson
"According to ISM, only three services industries - utilities, educational services, and professional, scientific and technical services – registered growth in January, with the remaining 14 experiencing a contraction. These included construction, financial services, healthcare, and agriculture. Overall, it marked the first contraction in the ISM’s survey of the services industry since March 2003, when the Iraq war began"
It is interesting to see that the services that will sustain growth are related to the knowledge economy (with the exception of utilities) and innovation, and the shrinking ones are related to dispensable activities or activities that support the growth of the economy or are the symptoms of extra money to spend by society (better spaces to live, better health, better and healthier food,etc.).
This study resonates with the experts who are encouraging companies to invest more in innovation now in order to soften the landing and speed up recovery. Will the companies listen?
Picture: Olafur Eliasson
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one can only hope.
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