Tees firms confident of beating the credit crunch
TEESSIDE businesses remain defiant they can beat the credit crunch, despite news that nearly one in two companies are planning on making redundancies this year.
An Evening Gazette online poll revealed 47.4% of firms were planning cut-backs.
This compares with only two in five bosses nationally, according to research from the Chartered Institute of Personnel and Development (CIPD).
The Gazette poll suggests Teesside firms are being squeezed by the credit crunch but although some have been forced to cut costs, others have recruited new staff as they look to expand.
Gary Watson managing director of recruitment firm New Group - which supplies most of the workers to Teesport - said he was looking to take on new workers in the next three months.
He said: “We are certainly not looking to make any redundancies. For some companies, perhaps an increased interest in temporary staff suggests they don’t want to commit to additional fixed overheads such as permanent employees. However, we have seen no general trend of companies looking to make staff cut-backs.”
Stockton-based Personal Finance Claims - which advises clients on consumer credit agreements such as mortgage, secured loan and motor finance contracts - recently created 18 jobs and aims to recruit further in the coming months.
Colin Hartness, who runs the firm, said: “This is a growth business, especially in an uncertain economic climate. We are planning to increase our product range to ensure we remain competitive.”
Last week the CIPD said redundancy intentions had increased in all sections of industry since the end of last year.
The organisation’s chief economist John Philpott said: “Employers’ initial reaction to talk of an economic slowdown was to hold fire and take stock of the emerging situation, but a substantial number now expect to trim their workforces.”
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