Wellstream success is worth celebrating

Jun 18 2008 by Andrew Hebden, The Journal

ON a day when it was revealed by The Journal that the North East exported £10bn worth of goods for the first time in the last financial year, it was fitting that Wellstream chief operating officer Chris Braithwaite was guest speaker at the North East Chamber of Commerce annual meeting yesterday.

The remarkable success of the flexible tube maker from Newcastle over the last four years has been recounted often in these pages, but it is a story worth celebrating. It is also fantastic Mr Braithwaite spared the time to address a gathering of some 180 businesspeople at the NECC, reflecting his willingness to recognise the part the region has played in the firm’s success.

Indeed, Mr Braithwaite estimated that the company would only have been half as successful had it not chosen the North East as its new base when it relocated from its original American home.

Wellstream – which sells 95% of its products overseas – will have contributed a good chunk of that £10bn worth of exports, with Nissan and the chemicals/pharmaceuticals sectors also being big contributors. Even more pleasing in the figures published in yesterday’s edition of nebusiness was the 33% rise achieved in the opening months of this year, which shows that the credit crunch has yet to really take hold in these important markets.

When asked what impact the current economic downturn would have on the long-term growth of the North East economy, Mr Braithwaite yesterday responded – without a moment’s hesitation – “none whatsoever”. It’s just the kind of positive attitude we should embrace in these times when it’s easy enough to talk ourselves into recession. Granted, Wellstream are an unusual example in that their core market – oil and gas – is benefiting from rather than suffering as a result of high oil prices. But he is right to say that the downturn should not knock the North East recovery too far off track.

And, if you concur with Mr Braithwaite’s future projections, we have every reason to be positive.

His analysis of how the North East has progressed since Wellstream relocated to the banks of the Tyne in the mid to late 1990s was revealing. He detected weaknesses at that time across the board. Today, he said, is characterised by improving schools, universities connected with industry, a workforce beginning to get tooled up with the right skills, a growing number of entrepreneurs and a trend-setting RDA.

His vision of 10 years hence was one of a region with a skilled workforce, a buoyant investment regime, a globally-leading RDA, universities established as leading civic institutions, and a business community brimming with confidence. Let’s hope he’s right.

Andrew Hebden: The voice of North East business