We have a part to play on road to business recovery
With corporate deal activity at its lowest level for years three experts share their views on the state of the market.
The Corporate Banker
THESE are extraordinary times both for the North East and the UK, but it’s not all doom and gloom.
According to one of the UK’s leading economic think-tanks, the National Institute of Economic and Social Research (NIESR), although the economy hit rock bottom in March, the economy grew, modestly, in April and May by 0.2% and 0.1% respectively.
It’s not just nationally where we are seeing what might be described as ‘green roots’ rather than ‘green shoots’ of recovery, because the rate of decline in company performance seems to have decreased across the North East.
Let’s take one of the region’s biggest manufacturers, Nissan. The company appears to be starting to return to former levels of production.
Although it’s only a small move, it’s certainly a move in the right direction, especially because this has enabled Nissan to begin recruiting.
Let’s also not forget one of the region’s biggest and most important sectors – the oil and gas industry. Over the last few months, we have seen the price of oil go from a low of $30 four months ago to breaking through the $70 barrier. This is good news for many businesses in the North East as such an increase will hopefully go hand-in- hand with an increase in drilling activity and capital investment.
Here at Lloyds TSB Corporate Markets it’s definitely not all doom and gloom either.
We remain very much open for business and willing to support strong management teams.
There are businesses across the North East who have ambitious plans for future growth.
For example, the last nine months have seen us supporting some iconic North East businesses such as Romag, Simpson’s Malt and AWS Ecoplastics.
Overall, there are undoubtedly many challenges ahead for North East businesses, but they are capable of weathering the storm.
There are certainly more reasons to be upbeat, but we’ll have to take it steady: even though there are signs of growth, it may be a while before those green shoots break the surface.
We should all work hard to give them the practical support and moral encouragement they need.
Mike Mullaney, director and head of large corporate for the North East at Lloyds TSB Corporate Markets
Share
