Fastest 50 reflects state of region's economy

Oct 17 2007 By Colin Hewitt

THE Fastest 50 represents not just a barometer for the region’s economy – in many ways it encapsulates the lifeblood of North-East business.

In a region where the number of plcs remains relatively low, privately owned businesses are the real drivers of economic growth and prosperity.

Without their determination and will to succeed we would be in a very different position to that which we find ourselves in today. And without those businesses growing and expanding in a sustained and successful manner – as those in the Fastest 50 have done – we cannot keep alive the vibrancy and vitality that characterises the North-East in 2007.

It would be naïve to think that the region has left its troubles far behind – the fall-out from the recent financial turmoil in the banking sector is unclear while recent statistics on the number of business start-ups show we still have some catching up to do with other parts of the UK and even the Government admits that we need better transport links to compete nationally and internationally.

However, Alastair McColl and the team at Business Link North East have set out an ambitious programme to boost the number of new and growing businesses in the region whilst the prospect of London-style transport powers coming to the North-East is now at least a possibility.

But enough of the future, it is the present to which we now turn as we look at this year’s Fastest 50. What can it tell us about the current state of play in the region?

The first thing to recognise is the wide geographical spread of the North-East’s fastest growing companies – a positive sign I believe.

While the urban centres of Tyneside, Wearside and Teesside are home to a large number of the Fastest 50, less obvious locations are seeing their businesses blossom. For example, this year’s overall winner – The Engineering Business – has its headquarters in Riding Mill along the Tyne Valley, construction powerhouse Esh has its roots in County Durham’s Esh Winning, where Hargreaves Coal Combustion Products is also based, whilst CJ Leonard & Sons is enjoying excellent growth from Guisborough.

In a similar fashion, examining the different sectors represented in the Fastest 50 throws up an intriguing picture of the sheer variety and vibrancy of the region’s growing businesses.

At first glance, it may seem that the engineering and manufacturing sector still dominates the North-East economy.

The offshore sector in particular offers a rich source of growth as seen by the performance of The Engineering Business and Shepherd Offshore Services, the fastest growing large and small businesses respectively.

With the other business in the winners’ enclosure – Controle Mesure Regulation (UK) – specialising in temperature sensor components, the dominance of the engineering sector would seem to be complete.

However, looking at the other businesses in the list shows this is certainly not the case.

The leisure sector remains strong in the region with the likes of Parkdean Holidays, the Station Hotel (Newcastle) and STR Enterprises all seeing continued and encouraging growth.

A revived interest in the delights of regionally produced, authentic food has seen the North-East’s food and drink producers performing well from Northumbrian Fine Foods and Williams The Bakers to Camerons Brewery and the unusual Pola Minerals, which supplies natural shells to the European and US food industries for presenting food.

Clothing for import and export also features in the list with fast-growing fashion importer Visage and iconic outdoorwear manufacturer J Barbour & Sons.

Whilst operating in very different markets within the clothing industry, both businesses are family-owned and remain loyal to their roots in the region despite having operations and interests in locations across the world, reflecting the importance of the global economy to business in the North-East.

The presence of Barbour in the list
also demonstrates not only that the North-East is home to world-famous brands but that its companies continue to grow even as they enter their second century in business.

As ever, the North-East’s property and construction sector is well represented with a series of high quality businesses operating in a range of different fields from property development to building materials supply.

And in case anyone thought that the North-East’s long association with coal was a thing of the past, take a look at the success of Hargreaves Coal Combustion Products, which has become a major player in the ash management side of the coal-fired power industry in just four years, with work both in the UK and in countries such as Indonesia, India, Ukraine and Japan.

The region’s services industry, often unfairly seen as the poor relation to manufacturing in the North-East, enjoys a strong showing in this year’s list.

From professional services firms such as NEL Fund Management Group and Lycett, Browne-Swinburne & Douglass Limited
to commercial insurance group Arnott and call centre operator CJ Garland & Co, the sector’s increasing strength in depth is clear for all to see. CJ Garland’s plans
to open another call centre in South Shields may well keep it in the Fastest
50 for some time to come, as well as creating up to 1,000 jobs in the
region.

Such willingness to continue striving to achieve more is what has driven the businesses in this year’s Fastest 50 to get on to the list.

It is also what will hopefully continue to drive the region’s economy forward, creating jobs and prosperity as we face up to the challenges of the coming years.