'Firms must stand together now to prosper when recession ends'
Jun 17 2009 By The Journal
BUSINESSES in the North East must continue to work together to promote the region and help to beat the recession.
That is the call from Phil Moorhouse, managing director of Darlington vehicle rental company Northgate plc, which is sponsoring The Journal’s North East Top 250 list of the region’s biggest companies by turnover, published next month.
He said: "Northgate is delighted to be sponsor for the second year running. Northgate’s roots are firmly in the North East – although we have successfully expanded across the UK and into the Republic of Ireland and Spain – currently with a rental fleet of around 120,000 vehicles.
"Since publication of the 2008 analysis, the global economy has seen, and continues to go through, unprecedented change. At a micro level that has been replicated in the North East. But that is no reason for businesses operating in various market sectors, and of all different sizes, to bury their heads in the sand.
"At such difficult times, it is essential that organisations of the North East support each other where possible, and promote the region as a successful environment in which to do business. Indeed, many companies that I’m sure will feature in this year’s Top 250 listing are our customers."
Mr Moorhouse believes recession is giving businesses an opportunity to analyse their cost base. "As a result, many public and private sector organisations have concluded that renting vehicles on a flexible, non-contract basis is more cost effective than owning or leasing. So, Northgate is focused on changing the perception that, far from rental being a stop-gap transport solution, it is vehicle usership and not ownership that is the key to cost management."
He said: "In these challenging economic times The Journal’s Top 250 listing, in which Northgate has regularly featured, will still be an annual barometer of success for businesses based in the North East. The 2009 snapshot will highlight triumphs but, sadly, also reveal some economic suffering in the last 12 months.
"However, in such times I believe it is more important than ever that North East businesses help each other. Together we can all prosper when the economy returns to growth."
The Top 250, out on July 15, is compiled for The Journal by Durham Business School.
