“Other than a somewhat more cautious approach to investment the status of our ongoing projects remains unchanged”, Jonathan Diamantino, CEO of Zacaria.
The biggest adaption we have had to make, which in fact pretty much all businesses have had to make, is adjusting to the new Work from Home norm and all the while maintaining the viability of the business. The lesson learned is that the new norm has introduced time efficiencies that were not previously realized, however at the same time has caused issues with running a business which still need to be overcome. As the new norm becomes the everyday norm, a natural balance should result.
Which are the advantages of your business going forward?
In the industrial parks sector, the advantage that Zacaria has always had is that the company catered more towards small and medium sized clients. In doing so the financial impact on the company of a client seizing operations, or not renewing at the end of a contract, was and remains minimal. Additionally, having a large number of smaller clients always gives Zacaria the opportunity to adapt to its client’s needs, be it a reduction or increase of area rented, temporary rent payment deferrals, or requests for improvements.
What are your expectations from the public sector, state projects to support future business?
Zacaria’s expectations from the public sector are probably the same as all other companies operating in the same industry, in that, the public sector continues to under appreciate the positive economic impact that companies like Zacaria bring to Romania. If the positive economic impact was properly appreciated then it is highly likely that the public sector would make efforts to be more time efficient in completing, or simplifying, the laborious construction authorization process for industrial park developers such as Zacaria.
What transformations you expect in your sector, their effects for the Romanian economy and in a regional perspective?
It is clear that the social and economic impact of COVID 19 on all industries will manifest change. These changes can be beneficial in nature or detrimental. In terms of HR one would expect that businesses will be taking a good look at their HR requirements and terminating any non-essential positions. The WFH, the new norm, may also have a positive impact in that, time lost travelling to attend meetings will reduce significantly and increase staff efficiency. This new norm will also have financial positive impact in that less money will be spent on fuel, air travel, hotels, entertainment etc, but more importantly the resulting reduction in the burning of fossil fuels will slow, to some extent, the human races impact on the world environment and wildlife.
From a business perspective the reduction in demand for fossil fuels is clearly not beneficial for petroleum producing companies, airlines, auto manufacturers etc. In respect of costs, they should reduce somewhat in the short term as pricing is likely to be more competitive. On a more long-term view costs are likely to increase again once the general public feel it’s safe to start spending disposable income on non-essentials as opposed to saving for the next economic crises. COVID 19 has forced governments to pump huge amounts of capital into their economies, Central Banks have reduced interest rates even further and loosened borrowing conditions, and commercial banks have worked diligently with their clients in order sustain their businesses during these unusual times.
The probable result of these measures is that financing may become cheaper than it was before COVID 19, especially as there is likely to be far more cash available in the capital markets. The question is, what will be the medium- or long-term economic impact be resulting from these pre and post COVID 19 fiscal policies. Will they have created long or short-term economic stability? And if only short term then what is next?
What is your message to clients and partners?
The message is the same as it always has been, our clients are our business partners, we shall stand by them as we have always done, and we shall do everything to best of our abilities and possibilities to ensure that they survive these times but importantly recover and continue to be successful.
An article published in the exclusive supplement – “Market pulse report, Romania – The new normal” | June 2020
A property market tour, including major cities, with projects status and updated opportunities at the end of the lockdown in Romania – June 2020. | Essential news with the current status of further investments, clients and partners relations, new priorities for the post crisis cycle. | B2B communication report – to help you mark your statements during the changes period.
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