BDO reports more evidence of two-speed economy
MANUFACTURERS exporting to high-growth markets and technology media and telecoms companies will be the winners in a “two-speed recovery”, according to research from accountants BDO.
The firm’s latest Industry Watch report predicts the polarisation between those businesses able to take advantage of new technology and high-growth markets and those not, will increase this year.
It anticipates a widening gap – between companies looking to exploit export markets, grow online sales and differentiate both product and service from those who are dependent on the high street and nervy UK consumers – will set the stage for the twin track recovery.
Dermot Power, business restructuring partner at BDO in Manchester said: “There are real growth opportunities for North West companies, but the current two-speed economic recovery is more distinct than ever.
“Businesses that develop innovative products, distribution channels and a strong customer proposition will gain significant competitive advantage – irrespective of sector.”
BDO believes the technology, media and telecoms (TMT) will be a ‘hot sector’ over the next 12 months.
Property and construction, leisure, and business services sectors, on the other hand, are generally expected to experience difficult market conditions.
The manufacturing sector in particular has benefited from a triple boost of a weak pound, ongoing weak interest rates, and falling inflation and commodity costs to return to positive growth territory in early 2012.
Mr Power added: “North West manufacturers have told us they are reassured by strengthening output and forward order books, and are looking forward to the next six months with renewed confidence.”
