State of the Region 2012: Business sentiment echoed across regions

BUSINESS leaders across Yorkshire, the North West and West Midlands are united in their belief that there are opportunities for growth in 2012.

However, although the majority of respondents to TheBusinessDesk.com’s State of the Region survey said each region was still a good place to do business, many said other places in the UK were better.

Hundreds of readers have taken part in our major online survey, which is supported by lead sponsor DLA Piper and backed by PwC and the CBI, and gives a comprehensive view of business sentiment across three of the UK’s biggest economic areas.

To read and download a full, detailed report on the findings, click here 

Comparing responses from the three regions, although many respondents agreed on many of the issues raised in the survey, they differed in some vital areas.

Although the majority of respondents in Yorkshire and the North West said they don’t anticipate facing any significant employee issues over the next 12 months, those questioned in the West Midlands flagged up salary and pay issues as a concern.

In Yorkshire, acquisitions were viewed as the most likely type of transactional activity in 2012. In both the North West and West Midlands it was refinancing and fundraising.

There was common concensus that targeting new markets and clients is a main business objective but that demand for goods and services is viewed as a major challenge.

The majority of respondents also agreed that the recent eurozone crisis will affect their businesses, that regional and national markets offer the best opportunities, and that public sector cuts will continue to impact their respective regions.

Access to finance, inward investment and transport and infrastructure were highlighted as issues that need to be addressed in the three locations to further drive growth.

Across the three regions, enterprise zones were broadly welcomed but there was uncertainty about the impact of local enterprise partnerships.

Richard May, managing partner at DLA Piper in Sheffield, said: “Yorkshire is not alone when it comes to concern over the wider economy. The more optimistic viewpoint of 2010 has dissipated to some extent and an overriding theme across Yorkshire, the North West and Midlands is general unease when it comes to the UK as a whole.

“But, Yorkshire businesses are far less worried about public spending cuts than they were last year and many are gearing up to push themselves forward, undeterred by the wider outlook.”

Sarah Day, managing partner at DLA Piper in Leeds, added that “Yorkshire resilience continues to shine through”.

“Each region has similar concerns and expectations but it is encouraging to see that a large proportion of businesses are united in their optimism when it comes to growth projections,” Ms Day said.

“We should also resist seeing those regions with which we traditionally compare ourselves as being the competition: the competition – for business, investment, talent – is global; how we respond to it is down to us.”

Paul Nixon, partner in PwC’s Leeds office, said: “The performance of entrepreneurial businesses in Yorkshire and the Humber is critical to the future of the region’s economy. It is vital that as much support as possible is made available in the year ahead to help them achieve their growth ambitions.

“Growth will come from looking wider for opportunities – whether from broader geography, enhanced product offering or better collaboration – and having the right talent and skills to exploit these opportunities effectively.”

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