Member Article

Northern business confident despite challenges

Northern businesses have emerged as the most confident in the fight back across the first quarter of 2012.

According to the latest ICAEW/Grant Thornton UK Business Confidence Monitor survey, the region seems to be showing resilience.

ICAEW Regional Director Keith Proudfoot says: “Northern businesses seem determined to fight back and are continuing to show great resilience and determination in the face of adversity.

“The financial performance of local firms is actually holding up relatively well. This optimism may have been boosted by the fact that more capital investment is likely to follow in the region, as both Teesside and Tyneside have been named as Centres for Offshore Renewable Energy (CORE).

“This will allow the region to receive additional government support for obtaining investment linked to offshore wind farms.

“Tata Steel is investing an additional £2m in its Hartlepool mills to enable them to accommodate the growing European offshore wind turbine market.”

Despite the promising findings, 43% of firms in the region have found levels of customer demand a greater challenge than a year ago, and as export growth has fallen sharply this quarter, risks remain.

Keith added: “Hiring intentions among Northern England’s private sector businesses remain relatively buoyant this quarter.

“Over the coming 12 months, firms in the region expect to increase their employee numbers by 2.0% on average. Roughly 1,500 private sector jobs will be created or safeguarded in the region by the European Regional Development Fund Competitiveness Program, which aims to help businesses increase turnover.

He went on to highlight the region’s dependence on the public sector for employment as a barrier to job prospects, as one in four employees are public sector workers.

This was posted in Bdaily's Members' News section by Tom Keighley .