State of the Region: Bosses alive to challenges and opportunities
BUSINESS leaders across TheBusinessDesk.com’s commercial heartlands of the North West, West Midlands and Yorkshire are united in their belief that confidence levels are rising and 2011 offers opportunities despite the challenging economic environment.
And in a major boost for their respective markets, the majority of those taking part in TheBusinessDesk.com’s State of the Region Survey, supported by law firm DLA Piper, believe the three regions remain good places to do business.
More than 1,000 readers took part in the major online survey, which gives a comprehensive view of business sentiment across three of the UK’s most successful and major economic regions.
Comparing responses from the North West, West Midlands and Yorkshire, although the majority of people agreed on many of the issues raised in the survey, respondents differ on what areas need to be addressed to further drive growth in their respective regions.
In Yorkshire and the West Midlands, transport and infrastructure are seen as key, while access to finance is a major issue in the North West.
The Coalition Government will have a negative impact on the UK economy according to the majority of respondents in the West Midlands. Yorkshire and North West respondents think it is too early to tell.
Salary and pay issues are viewed as the main employee issue that businesses anticipate facing in the next 12 months across the three regions, closely followed by recruitment of new staff.
The majority of businesses across the three areas expect to see their businesses growing in 2011 and are looking to target new UK markets.
Regional and local markets are seen as key across the three regions, while the majority of businesses anticipate cuts to public spending having a direct impact on their bottom line.
Understanding of Local Enterprise Partnerships, the bodies set to replace regional development agencies, is also unclear, with not one single respondent in the West Midlands having a clear understanding of their future role.
In Yorkshire and the North West, the majority of respondents said they did not have a clear understanding of new regional funding structures, such as the Regional Growth Fund, while in the West Midlands almost half said they had some idea of how the funds would work.
Across the three regions, respondents are in agreement that economic conditions will remain as they are in 2011 and that bank lending will remain at similar levels to 2010 over the next 12 months.
David Gray, pictured, office managing partner at DLA Piper in Manchester, said: “The
results of the survey have highlighted the many challenges that businesses face in the coming year, but also the opportunities.
“The market is still extremely difficult, but clear signs of renewed life are slowly emerging. The majority of businesses in the North West are entering 2011 with objectives in place to target new markets or develop new products, many also predict some growth in their profits and in their workforce.
“Over the next 12 months it is to be hoped that we are laying the foundations for some sustained progression in the regional economy and in employment levels.
“The survey also shows a consensus among regional business leaders on the issues that matter to the North West, such as clarifying the role of LEPs, long term strategic planning and fostering better idea sharing among business leaders. The appetite for businesses to work together seems to be stronger than it has ever been.
“With the Government encouraging the private sector to have a more active say in regional development, it is important that in 2011 local businesses come together to make sure their views are heard and take positive action where they can to facilitate the kinds of changes that will materially benefit the long-term health of the region.”
