The Fastest 50 analysed
Oct 15 2008 By Colin Hewitt for The Journal
THE past year has been a difficult one for economies around the globe, and the North East has by no means been immune to the effects.
But while the financial pages have had a rather gloomy look to them over the last 12 months, it is easy to overlook the fact that many businesses are not only surviving, they are also thriving.
High-profile failures and spectacular multi-billion dollar collapses may have grabbed the headlines, but look a little further and a more encouraging picture emerges.
This, in essence, is what the Fastest 50 is all about – charting how the North East's companies are quietly going about their business and highlighting their considerable successes.
Those businesses contained in this year's list are in many ways the lifeblood of the region's economy and the essence of our entrepreneurial spirit.
With a relatively small number of plcs on one side and a considerable public sector on the other, in many ways the North East's privately owned companies are the real drivers of the region's economy.
Their determination to succeed is vital to the continued good health of the area as we look to confront the challenges posed by the credit crunch and the global slowdown.
The team at Business and Enterprise North East, led by Alastair MacColl, our guest speaker at this year's Fastest 50, have already done much to help new businesses begin life and existing enterprises continue to flourish.
Their efforts and the signs of a burgeoning entrepreneurial spirit within the region can be seen in the statistics that show new business start-ups in the North East have risen over the past year, despite all the well-publicised problems across the world’s economies.
We hope to see many of these businesses in forthcoming editions of the Fastest 50, but we now turn our attention to this year's list to see what it can tell us about the state of the region's economic health.
The first thing to note is how many of those within the list are new entrants this year.
A total of 33 of the Fastest 50 for 2008 were not in last year's list – almost two-thirds of the total.
This is positive proof not only of the dynamism of the North East economy, but also its competitiveness – no company can afford to stand still in these times and in this region, something which can only be good for the forward march of the North East.
Balancing this injection of new blood is a reassuring level of continued success among those companies making a repeat appearance in the list.
No fewer than six out of the top 10 businesses in this year's Fastest 50 also featured in last year's list with another company – Bannatyne Fitness – having appeared (and won awards) as long ago as 1999 and 2000.
This mix of new talent and continuity is an enviable quality in a regional economy, as is the range of different businesses which this year's Fastest 50 demonstrates.
The North-East's formidable reputation for excellence across the marine, offshore and oil and gas industries is exemplified by the sheer number of companies operating in the sectors within the 2008 Fastest 50. From staff suppliers such as Wolviston Group to the cutting-edge technological innovations of IHC The Engineering Business and CTC Marine, there can be little doubt that the region is leading the way in England when it comes to these important and increasingly lucrative industries.
Manufacturers are also well represented with the likes of Express Engineering, Con Mech Group, Komatsu UK and Universal Sealants all featuring.
And while the construction sector has not enjoyed the best of times recently, it still provides a sizeable proportion of companies in this year's Fastest 50, including Hall Construction Services, Wearmouth Construction and Plant ,and Anvil Construction.
Food and drinks companies have chalked up some impressive performances, perhaps partly helped by the trend towards local sourcing and locally produced food.
Soft drinks maker Fentimans has enjoyed considerable national success by going back to the future for its traditionally-brewed beverages, while Camerons Brewery and George Bolam Foods demonstrate how quality food and drink is still very much in demand.
Then, on the cutting-edge of technology are companies such as Merit Merrell Technology and Analox while businesses including RMT Financial Management and Ramsdens Financial demonstrate the variety of financial firms still thriving in the region.
On a sub-regional level, the growing strength and importance of the various industries centred on the Tees Valley is there for all to see and with the establishment of centres such as the National Skills Academy for the Process Industries on Teesside and forthcoming major energy and petrochemical developments due to come on stream, it is likely to be a source of strength for several years to come.
Not to be outdone, Tyneside continues to flex its muscles across a variety of fields while the march of the renewables sector must spell good news for Northumberland as areas such as Blyth continue to attract infrastructure and expertise via the likes of the NaREC, the new and renewable energy centre based in Blyth.
County Durham's strengths in engineering, manufacturing and construction are apparent in this year's Fastest 50 while the planned expansion of NETPark in Sedgefield is set to bring in more cutting edge hi-tech businesses.
So while there is much to be wary of in terms of the global challenges facing the region's economy, the Fastest 50 shows there is also much to be proud of and much to be hopeful for.
Colin Hewitt is partner and head of commercial law at Ward Hadaway.
