Yorkshire’s manufacturers optimistic about the year ahead
woensdag, 10 maart 2010
Yorkshire’s manufacturers are optimistic about the year ahead, according to the National Business Survey conducted on behalf of Yorkshire Forward.
The research revealed that 38% of companies expect the manufacturing sector’s climate to improve over the next 12 months , while the same number believe that conditions will remain stable, due to better exchange rates which will help exporters and improve demand.
Businesses in Yorkshire have a more positive outlook than at any other time over the past 18 months. Almost a third (29%) of people said they expect the business climate to improve over the next year.
Fewer businesses in Yorkshire and the Humber reported deteriorating performance in November 2009 compared to June 2009. The survey showed that the economy is beginning to stabilise with 22% of businesses reporting an improvement in performance compared to 15% last June.
Firms have been stretched to the limit by the economic downturn, with 30% believing they could not withstand another dip in the economy. The number of companies at risk has also grown since June 2009.
Yet the recession has also had a positive effect on businesses in Yorkshire, with more than two-thirds (68%) of businesses revealing that they have been motivated to explore new markets and customers as a direct result of the economic crisis. This will enable companies to grow strongly as the recovery continues.
Demand for finance is increasing, with a fifth of firms needing to raise new sources or renegotiate existing finance or credit in the next 12 months, the survey found.
Larger businesses are finding it easier than smaller businesses to access finance or credit. At the same time larger companies are continuing to perform better than smaller companies, highlighting the need to support companies of all sizes to maintain a more stable economy.
Reducing CO2 emissions is high on regional businesses agendas with more than 45% having taken steps to cut emissions, which not only has a positive effect on the environment but also their business performance.
Patrick Bowes, chief economist at Yorkshire Forward, said: “Manufacturers in the region are much more optimistic about business prospects in 2010, especially the ‘bounce back’ in new orders in the UK market. We have worked hard in 2009 to support businesses to make sure they tap into new markets and it is particularly encouraging that up to 68% of the region’s businesses now see the development of new markets as their top priority in responding to the upturn in 2010.”