The strong get stronger

Jul 14 2010 by Lauren Huntington, The Journal

Lauren Huntington tells the story from the heat of the Top 200 counting house.

WITH the UK recession officially over, the year's Top 200 listing proves especially fascinating.

While a number of firms continue to prosper, others have clearly been focussed on riding out the downturn and continuing to scale back investment.

The good news, though, is that the North East's recovery aligns with the rest of the UK, both in timing and depth, and the outlook for 2010 is increasingly positive.

With the continued pressure on output and resources, there has inevitably been significant movement in the listings.

The strong have become stronger, with the top four companies unchanged from last year, while others have either slipped down in the rankings or, unfortunately, disappeared.

Again public transport group Arriva plc claims top spot, now with an impressive turnover of £3,147,800,000 for 2009.

For the second year running Arriva has pipped previous winner Nissan to the post, despite Nissan's equally impressive performance in what have been challenging times for the automotive sector.

Should Deutsche Bahn’s takeover bid succeed, Arriva might no longer be eligible for Top 200 consideration next year, and a new regional success story would then unfold.

The list’s top four places remain as in 2009 – with Arriva, Nissan, Amec and Go Ahead Group all faring well in challenging times.

Special mention should also be made of Newcastle-based Vertu Motors and Eaga plc, which have both entered the top 10, their turnover having climbed significantly year on year since their entry into the listing.

It is also encouraging to welcome 19 new entries to the listing as well as three re-entries. Of particular note is Sunderland Association Football Club, which has climbed 155 places to reach number 82 in 2010, the financial performance mirroring the reformed fortune on the pitch.

The North East has rebalanced its manufacturing industry too, with the increased presence of the renewable energy and subsea sector, represented well by Darlington's CTC Marine (38).

As expected, there has been little growth in employee numbers. Most organisations report similar or slightly lower employee numbers than last year.

According to regional development agency One North East, recruitment is expected to recover more slowly than output. So it may be next year before we see significant progress in this area.

It will also be interesting to see how cutbacks in the public sector, a major employer in the North East, affect private sector balance sheets.

We are already looking forward to 2011. With Arriva's likely takeover, Nissan's North East electric vehicle manufacturing plant safeguarding more than 2000 jobs, and previous winner Northern Rock returning to private ownership, it will be fascinating to see who comes out on top then.

Lauren Huntington is corporate relations manager, Durham Business School