Member Article

Positivity continues among North East entrepreneurs

Remuneration, prices and capital expenditure are on the rise as entrepreneurs continue to report positivity in the economy, according to the results of a survey of North East entrepreneurs.

The latest Entrepreneurs’ Forum Business Tracker Survey, covering the second quarter of 2014, saw positivity throughout key indicators.

Compared with the figures for the same quarter in 2013, entrepreneurs responding to the survey painted a positive picture of all aspects of business, including sales, profits, employment, wages, prices and spending. The survey is conducted and compiled by leading research specialist Acritas.

Overall sales: 59% reported an increase, while 25% said levels had remained the same Export sales: 28% saw an increase, while 47% said a retention of Q2 2013 levels Actual profit: An increase was reported by 53%, while 24% said levels were maintained Employee numbers: 46% reported an increase in employment, with 46% saying levels had not changed Remuneration: 55% reported an increase, 43% said levels were the same Prices: 24% reported an increase, while 68% said levels had remained the same Capital expenditure: An increase was reported by 45%, and 45% said levels had remained as they were

Looking forward to the third quarter, optimism was high, particularly with regards overall sales, with 78% expecting an increase, and actual profit (70%).

Entrepreneurs also identified challenges and barriers to growth, including finding the skilled staff, connections to and from the North East in terms of choice and cost, and finding the right financial package that suits the business.

Nigel Mills, Chairman of the Entrepreneurs’ Forum, said: “The outlook amongst entrepreneurs, who are one of the key drivers of our economy, remains positive, although we continue to see those challenges to growth around staff, transport and finance.

“It’s true there are challenges and opportunities on the economic horizon, including future devolution of powers, a General Election and the levels to which interest rates will rise over the coming months. However, our survey of entrepreneurs shows that they are rising to the challenges and taking advantage of the opportunities presented to them.”

Among those firms confident of growth is Geocore Site Investigations of Redcar. Founded in 1998, the firm now employs 25 people and has a turnover of around £2.4m.

The firm has recently invested £1.5m in three rigs, unique to the UK market, to drill bore holes for ground source heat pumps in the domestic and commercial markets.

Managing Director Adam Woodhead said: “We have been operating in the ground source heat pumps market for ten years and these new rigs, which are innovative and allow our teams to work faster, expand the scope of work we can conduct. The advent of such incentives as the Government’s Renewable Heat Incentive, which essentially pays people to use renewable technology such as heat pumps, has given us the confidence to invest in this market.

“While much of our work is in and around the London area, we were recently engaged by a Teesside-based transport company to work on its new warehouse, drilling 70 bore holes, each 150m deep, and this is something our investment has enabled us to do. It is great that the growth of the company is also opening up opportunities to work more in our native North East, having previously mainly in the South since the recession. This is heartening, because it indicates positivity in the North East.

“Our membership of the Entrepreneurs’ Forum has been one of the key reasons why our business is growing. We’ve found that being part of the Forum community has brought real benefits to our business.”

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This was posted in Bdaily's Members' News section by Entrepreneurs Forum .