NW bosses expect technology sector to shine

TECHNOLOGY businesses will do best in the next 12 months, while those serving the public sector will have the hardest time of all.

The findings are seen in TheBusinessDesk.com’s State of the Region Survey, which polled readers of our website to gauge their outlook for this year.

As well as technology, professional services, manufacturing and financial services were seen as having good growth potential.

Unsurprisingly, given the challenges of the last 18 months, retail and property businesses were among the sectors seen as having the lowest
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With the parlous state of the public finances a key issue for this year – and the expectation that savage cuts in public sector spending are on the way, just 3.3% of those polled expect the public sector to thrive this year.

The technology sector by contrast won 22% of the vote, followed by professional services with 16.5%.

TheBusinessDesk.com’s State of the Region Survey, was completed by hundreds of business leaders, is supported by headline sponsor, law firm DLA Piper, and associate sponsors BDO and Yorkshire Bank.

In the North West, 32% of respondents said increased bank lending would spark economic recovery the most, while a similar proportion believe a change in government will be the major catalyst for change.

Encouragingly 67% of those surveyed expect their businesses to grow revenues, profits and staff in the next 12 months. Some 30% expect things to stay the same, while just 3% are expecting to contract this year.

David Gray, managing partner of DLA Piper’s Manchester office said it was not surprising that many expect the technology and professional services sector to thrive.

“Both sectors are relatively ‘light on their feet’ and have been better-able to roll with the punches during the downturn of the last couple of years. By contrast, the property market has taken such a beating that it will inevitably take longer to recover.”

Mr Gray, pictured, said the reasons for optimism in the manufacturing and financial services sectors were more difficult to interpret.

“In the case of manufacturing, it may be that the weakness of the pound is acting as a catalyst, along with the belief that we have seen the worst of the recession, for many businesses to bring some of its manufacturing back to its NW roots after a period of outsourcing overseas.

“At the end of a torrid couple of years for the financial services sector and released from its current political straitjacket, it is well-placed to bounce back in Manchester as the UK’s second- city for financial services, albeit, it is to be hoped, one that has learnt a few lessons along the way.

“The downer on the public sector is entirely understandable but I think it will still be active over the course of the next year and beyond.

“The optimism of the region and the willingness of the private sector to partner with the public sector for the greater good of the region, means that tightened purse strings will not entirely stymie activity. Where there is a will there is a way and although the public sector may not thrive in 2010, it is not unreasonable to expect increasing levels of activity. ”