Overseas markets boosting Birmingham business says chamber

BUSINESSES in Birmingham and Solihull are fighting their way out recession by looking to overseas markets for growth.

Figures from Birmingham Chamber of Commerce Group’s second quarterly economic survey of 2011 reveal both the manufacturing and service sectors have bounced back by exploiting opportunities abroad.

Manufacturers report an increase in sales of 59%, the highest figure for over 12 months. Order books were also fuller with 47% of respondents reporting an increase, although that figure was 8% down on the previous quarter but up 10% on the position a year ago.

The picture was similar in the service sector. Firms here reported an increase in export sales to 55% – the highest for over 12 months – and orders were also buoyant with a year high at 54%, compared with 40% 12 months ago.

Chamber president Christine Braddock said: “The survey does demonstrate the resilience of our businesses in this region. In all sectors they have looked at new markets and new products and are on their way back.

“We can only hope that government policies maintain stability. Interest rates have been at an historic low for 27 months and we urge the Bank of England to maintain this level and to look at an increase in the quantitative easing programme.”

Confidence is also returning slowly to the manufacturing sector. Of respondents, 32% said they had revised their plans to invest upwards against 22% a year ago, while nearly a quarter said they were looking to invest in training.

More than two-thirds (67%) are expecting to record an increased turnover while a similar number (66%) were confident profitability would improve. Those figures have remained largely static over the past year.

The majority of service sector firms (financial, legal and other business services like hotels, transport and communication industries) were also optimistic turnover and profitability would improve.

However, there was only a slight improvement in employment levels in the manufacturing sector with 31% of firms saying they had increased their workforce over the past three months and 28% said they would probably take on new personnel in the next three months.

Service sector staffing plans also remained flat with 22% recruiting in the past three months and 28% expecting to go into the jobs market in the next quarter.