Plenty of cause for optimism in 2017, say top firms

REGENERATION work across the North of England will continue to gather pace in 2017, despite the uncertainty of Brexit, according to leading structural engineering specialist TRP Consulting.

The Manchester-headquartered practice is working on major construction and regeneration projects across the region, and sees no sign of the momentum slowing.

However, TRP Consulting director Tim Royle says it is important that the Northern Powerhouse rhetoric is now put into action to increase that momentum.

He said: “Uncertainty has been the buzzword since the Brexit vote and in a way we head into 2017 with plenty of unknowns ahead.

“However, there are encouraging signs that the regeneration work we have seen in the North will continue to gather pace, and not just in the big metropolitan areas.

“There are major projects moving off the drawing board and on-site in towns across the whole of the North, which is great to see.

“We are working on a number of developing projects in the hospitality sector, which underlines the confidence that continues to grow and the belief in strong, deliverable regeneration schemes that can deliver economic benefits.

“In Lancashire we will continue to see the development of the emerging Samlesbury Aerospace Enterprise Zone in 2017, a project which is set to generate more than 10,000 new high value jobs.

“The development work that is being carried out at Samlesbury, both on the BAE Systems’ aircraft manufacturing site and the enterprise zone, is great news for skills and the region’s economy.”

He added: “The government’s commitment to infrastructure and the positive noises made by the Chancellor in his Autumn Statement in regard to the Northern Powerhouse were welcome.

“It was also pleasing to hear him talk positively about the Northern Powerhouse and the growing need to close the productivity gap that exists between London and the North of England. Now we need some action.”

Royle’s views were backed up by professional services firm Grant Thonrton’s North West managing partner Carl Williams who said he was confident the region could meet the challenges which 2017 may bring.

“We have great businesses, world class universities, global connectivity and a fantastic spirit of entrepreneurship here,” he told TheBusinessDesk.

“We could see a number of headwinds having an impact on consumers and businesses.  Increased food prices as a result of the weak pound could push inflation up and spark interest rate rises.

“If the cost of living increases we could see wage inflation too. This would obviously be bad news for businesses already operating on tight margins.

“2017 will also be a year of change for Manchester with Sir Howard (Bernstein) stepping down at the council and the election of the metro-mayor in May.

“It’ll also be very interesting to see how the Northern Powerhouse progresses without its most vociferous supporter George Osborne in government.

“The signs are that Theresa May and Phillip Hammond are still supporters of the Northern Powerhouse project and I hope there will be some definitive commitments to infrastructure investment in the North in the March Budget.”

Meanwhile, mid-market private equity firm Livingbridge partner Pete Clarke said that despite political and economic uncertainty, 2016 had shown there was still a strong appetite to get deals done.

He said: “There is plenty of money available, with both private equity and debt fund liquidity supporting the higher prices we have witnessed during the year, and we would expect that to continue.

“While it feels inevitable that deal making will get harder over the next few years, there is still the capital, ambition and determination to make deals happen.

“In years to come we may reflect on 2016 as just the start of a period of political and economic volatility, as who knows what the impact of a Trump presidency will bring, as well as the inevitable evolution of a post-Brexit EU.

“However, I am optimistic that we will continue to see entrepreneurial SME businesses demonstrating their agility and innovation in rapidly adapting their business models to thrive in the conditions they face.

“At Livingbridge, we expect to see investment opportunities right across the entrepreneurial SME space.”