Record number of start-ups in Sunderland

Sunderland has seen a record number of business start ups this year, according to the UK-based Duport report, compiled using Companies House approved software.

The six months to June saw more new companies formed in Sunderland than ever before. There were a total of 332 new companies formed - more than any other half year in the history of the area.

The city has an impressive track record of success with start-up businesses. 2012 was also a record-breaking half year, and follows on from the Royal Mail survey of 2010 in which Sunderland had the highest number of start-up companies in any UK region.

The 2013 figures show a seven per cent rise on the same period in 2012, and the Duport report confirms that the number of new companies being established has been rising in Sunderland every year since 2010. The number of company closures has been falling over the same period.

Managing director of Duport.co.uk, Peter Valaitis said: “It seems to be a very good time for company formation in Sunderland, which can only be positive for the local economy. More new company formations mean a more diverse business base, hopefully leading to a stronger economy.”

Nurturing growing businesses is vital for Sunderland’s economic future, and the support of enterprise is one of the key priorities in the city’s Economic Masterplan.

Councillor Paul Watson, Leader of Sunderland City Council said: “The Duport survey once again shows that there’s a strong entrepreneurial spirit in the city and that commerce and industry regard Sunderland as a good place to do business. In these difficult economic times, the City Council and its partners are totally committed to helping people start their own businesses and seeing companies grow.”

Sunderland also continues to attract business with more than 110 strategic investments creating 12,400 jobs and £2 billion of capital investment in the last seven years – believed to be higher than any comparably-sized location in the UK.

Recent success stories include fast growing manufacturing companies Q Laser and Fastglass.

Q Laser, only set up in 2012, has won contracts from companies across the North East, Scotland and down into the Midlands. Managing director Geoff Gibson started the laser-cutting business initially to service his metal fabrication company Dale Fabrications, but he quickly spotted a gap in the market for a quality laser cutting service.

Now between 75% and 80% of Q Laser’s workload comes from external customers. The business employs six staff and Geoff is considering starting a second shift to cope with demand.

“I’d like to see the continuation of steady growth, the creation of new jobs, and financial security for all our employees.” He said: “Neil Clasper, the council’s senior business development officer, has been a pivotal part of our growth. His knowledge, advice and general support were exemplary. Houghton le Spring has proved to be an ideal logistical location, situated between the A19 and the A1, it’s perfectly suited for our existing customer base.”

Fastglass, which has been trading from Sunderland since opening for business in February 2013, has already recruited seven staff and reached its first-year targets in its first few months of business. It is aiming to double staff numbers in the next two years and is looking into purchasing additional equipment to keep pace with demand.

Managing director John Davies started Fastglass after being made redundant during the recession. He said: “I am surprised how quickly it’s taken off. I did a business plan for the first two years and after six months we had reached where I was expecting to be in a year.

“We’ve had terrific support from the City Council’s business team from the start, and it’s good to know they’re there to offer practical and strategic advice that’s relevant to my business.”

Sunderland City Council’s track record of encouraging and nurturing new business has helped enterprises set up and thrive across the city. New businesses cover all sectors, from cutting edge technology start-ups based at Evolve, Sunderland Software Centre, the University of Sunderland’s Hatchery and the Jupiter Centre at the North East Business & Innovation Centre to manufacturing companies at industrial and business parks across the city, creating jobs and investment for Sunderland and the region.

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