The Fastest 50 analysed
Colin Hewitt is partner and head of commercial law at Ward Hadaway
MUCH has been said in recent months about the importance of the private sector's role in piloting the country's path to economic recovery.
Politicians and commentators have also made great play about how local economies – in particular the North East’s – need to “rebalance” from what is seen as an over-reliance on the public sector for employment and prosperity.
With this in mind, the publication of the Fastest 50 for 2010 could hardly be more timely.
Here are 50 excellent reasons to be both proud of the region’s commercial strength and resilience and optimistic about the North East’s ability to forge a path to future economic success.
These privately owned companies embody the entrepreneurial spirit and willingness to get on with the job, which we will need over the next few years as the effects of the public spending squeeze make their presence felt.
So what does a closer look at those on the list tell us about the region’s economy and the businesses which make up its leading lights?
One of the first things to note is the sheer number of new companies featured in this year’s list.
Only 13 businesses have survived from the 2009 Fastest 50 as the 37 new entrants make their presence felt.
It is clear that there has been something of a shake-up in the region’s businesses over the past year or so, something which is perhaps unsurprising when you consider the upheavals which the world’s economy has undergone in recent times.
Most of the results from which the 2010 list has been compiled cover 2008 and 2009 – representing the worst years of the recession – and it would be remarkable if the region had escaped from the economic onslaught unscathed.
Judged in this light, 2010’s returning Fastest 50 entrants – the likes of The Specials Laboratory, Arefco Special Products and last year’s overall winner Soil Machine Dynamics – are even more worthy of our praise.
Looking at matters from another perspective, this changing of the guard does show the dynamism inherent in the North East economy and the restless nature of the region’s business world.
It will be intriguing to see if 2011 sees a return for those pacesetters of previous years as they repair balance sheets and regroup to face the future with confidence again, and are able to act as the engine room for job creation, as the Government hopes.
Nevertheless, this year of change has brought with it three new winners in the shape of Wilton Engineering Services, UK Independent Medical and ICS Integrated Cable Systems. The fastest-growing large business and overall fastest growing company of 2010, Wilton Engineering Services, illustrates one of the North-East’s enduring strengths – engineering and manufacturing, particularly in the offshore sector.
A look through this year’s Fastest 50 uncovers a number of other success stories in the sector, and in related industries – Precision Engineering International, Svitzer Marine, Techdrill and last year’s overall winner, SMD, all demonstrate how the region’s experience and engineering know-how have stood us in good stead in the face of economic storms.
UK Independent Medical’s victory in the fastest growing medium business category proves that the region’s professional services sector is most definitely alive and well too. Its foundation as recently as 2003 also illustrates that entrepreneurial businesses can truly flourish in the region and enjoy rapid growth.
In many ways, ICS Integrated Cable Systems – winner of the fastest growing small business – embodies the region’s business spirit.
The cable installation specialist may not have the highest profile in the North East, but it has worked on a quite amazing array of building projects, including England’s rugby stadium Twickenham, the Home Office, the London Stock Exchange, the 54-floor Beetham Tower in Manchester and the Queen Elizabeth Hospital in Birmingham.
Winning work on such prestigious projects requires not only in-depth knowledge and expertise but also the confidence to compete with rivals from across the country.
Combining expertise with unshowy confidence has helped several members of the Fastest 50 to be world leaders in their fields.
While the likes of iconic clothing maker J Barbour & Sons are well known to many, who realised that Redcar boasts the world’s largest manufacturer of drysuits in the shape of Typhoon International, or that Culpitt’s Ashington factory is the UK’s leading maker of cake and food decorations?
It is perhaps less surprising that food continues to be a key sector in the region’s economy.
Alongside Culpitt, we have the oldest independent fish and chip shop food supplier in the UK, with Gateshead’s Henry Colbeck Ltd supplying over 2,500 customers on both sides of the border; frozen food and ice cream wholesale distributor Eden Farm; confectionery wholesaler Kitwave Ltd and W Hodgson of Hartlepool, which catches, processes and delivers North Sea fish to the region’s restaurants and dinner tables.
The construction sector has been hit hard by the economic downturn, but many North-East companies in the industry continue to thrive, with Owen Pugh Holdings, Renvac Scaffolding and Coupe Construction all finding a place in the Fastest 50.
The region also continues to be an attractive place for multi-national companies to set up their UK bases.
Battery maker Saft, printing specialist Elanders, OSG Ship Management and kitchen manufacturer Nobia Holdings have all established important operations in the North-East as part of their global networks.
One final conclusion can be drawn from this year’s Fastest 50. The real spread of success stories from Berwick in the north to Guisborough in the south shows how trailblazers can be found in every corner of the North East.
With this in mind, it will be interesting to see how the changes brought by the shake-up in regional business support will affect the Fastest 50 in years to come.
