Leaders at region’s top 250 are upbeat
Apr 9 2008 by Graeme King, The Journal
EXECUTIVES at the top 250 companies in the North East remain positive about their businesses’ prospects for 2008 despite the doom and gloom prompted by the global credit crunch.
The Journal’s Business Barometer, produced in association with Newcastle Business School at Northumbria University, today reveals that a healthy 69% of the region’s top companies expect sales to increase this year, down from 77.5% in last October’s survey. And 46% of those surveyed predict employment numbers will rise in their firm, against 57.5% previously.
The research was welcomed by key business bodies in the region, who said it reflected their experience on the ground.
Brian Snowdon, professor of economics and international business at Newcastle Business School, said there had been a substantial deterioration in the global economic environment since the time of the research for the last Business Barometer in September 2007.
“Overall, while the current barometer survey provides some evidence of increasing concern about economic prospects in 2008, the North East business climate remains remarkably upbeat given the international economic climate,” he said.
Liz Smith, assistant regional director of the CBI, said the findings echoed research carried out by her own organisation.
“For many companies, the start of 2008 has been relatively positive, fuelled by growth in overseas demand. However, there are signs of dipping confidence going forward as companies see an increased tax bill and tougher credit conditions, coupled with rising energy and commodity prices, and the CBI has amended its growth forecast to reflect this.
“It is worth emphasising that there does appear to be a resilience in the regional economy which indicates that North East business, for the most part, will be able to weather the storm.”
Sentiment about the state of the North East business climate overall has also held up well, with 39% of those surveyed either moderately or very optimistic, while 17% were pessimistic, and 29% thought the feeling in the business community was one of uncertainty.
Jonathan Lamb, marketing director of Business Link North East, said it had not witnessed a downturn in use of its services, adding: “The region’s entrepreneurs also still seem to have retained their desire and confidence to start new business ventures and their use of the Business Link service remains as high as ever.”
Alan Hall, director of manufacturers’ organisation EEF Northern, said: “The survey is excellent – very insightful as to the mood in the business commun- ity. I think there is a lot of buoyancy in manufacturing, but it would be naive to think the sector will not suffer at some point.”
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