State of the Region: Positive outlook for regions but challenges ahead
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 positive 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.
Click here to download the full Yorkshire report on the State of the Region Survey.
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 Goverment 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.
Stephen Sly, managing partner of DLA Piper in Sheffield, said: “The results of the report have highlighted the challenges that businesses face in the coming year, but also the opportunities. The market is still difficult, but clear signs of renewed life are emerging.
“A high number of businesses in Yorkshire are entering 2011 with objectives in place to target new markets or develop new products and they predict positive growth in their profits and payroll. So over the next 12 months we could be laying the foundations for some real progression in the regional economy and employment levels.
“The survey also shows a consensus among regional business leaders on the issues that matter most, such as clarifying the role of LEPs, long term strategic planning and fostering better idea sharing among business leaders. While many of our opinions and predictions are mirrored by our business counterparts in the West Midlands and the North West, the survey highlights areas of specific concern to Yorkshire and provides useful guidelines on the issues that need to be addressed in the region.
“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 our views are heard and take positive action where we can to facilitate the kinds of changes that we wish to see for the region.”
More on State of the Region Survey:
– Austerity measures won’t stop growth
– Regional markets still key despite challenges
– Spending cuts will ‘stabilise economy’
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