State of the Region: Opportuities for growth do exist say firms
BUSINESS leaders across TheBusinessDesk.com’s commercial heartlands of the West Midlands, Yorkshire and the North West 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 2012 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.
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 consensus 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.
Mark Beardmore, Office Managing Partner, DLA Piper in Birmingham, left, said: “The West Midlands 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 the West Midlands, the North West and Yorkshire is general unease when it comes to the UK as a whole. But, West Midlands 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.
“Each of the three regions surveyed 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. Working together to promote the region’s strengths and making the most of partnerships between commercial operations and the LEPs will be key as we move into a new year.”
Mark Smith, regional chairman at PwC in the Midlands, left, said: “The performance of private companies in the region is critical to the future of the region’s economy and it is vital that as much support as possible is made available in the year ahead.
“In addition to continuing to improve access to finance, private businesses have told us in the poll that they believe that initiatives designed to boost skills and attract inward investment will also be important.”
