Businesses expect 2012 to be tough

THERE is little optimism among local manufacturers that their prospects are going to improve next year, according to a major survey released today.

The survey by Birmingham Chamber of Commerce Group (BCCG) on behalf of the Greater Birmingham and Solihull Local Enterprise Partnership (LEP) also reveals the outlook for business generally remains uncertain with only slightly more than half of companies in the Birmingham area confident their fortunes are going to improve in 2012.

But, despite a pessimistic view of the immediate future, the manufacturing sector offers a glimmer of hope on the jobs front. Some 36% of respondents said they had increased their workforce in the final quarter of 2011 while 27%, the highest figure for six months, expect to take on more staff in the next three months.
 
However, recruitment figures for the service sector continued a downward trend. Only 17 per cent had increased their workforce in the final three months of the year while 21 per cent expected it to increase in the first quarter of 2012.  
 
Businesses in the area were praised for their “resilient performance” in tough economic conditions by Andy Street, chair of the LEP.

“Given the amount of external bad news over recent months, our latest survey shows a resilient performance from businesses in the Greater Birmingham area. On balance, the expectations for profitability and investment are encouraging for 2012,” he said.

The survey revealed that inflation is the biggest concern among the region’s manufacturers. Twenty-three per cent cited it as the major external factor putting pressure on their business.