Technology, media and telecoms, manufacturing and tourism have been highlighted as the sectors business leaders believe will lead the South West’s recovery and help to head-off the threat of a double-dip recession.
More than 100 directors contributed to South West Outlook – Recession to Progression – an authoritative report on the economy commissioned by accountants and business advisers BDO, which is championing the need for all business leaders to take direct action to strengthen their business.
The most common view was that the recovery would be led by key sectors rather than business size. When asked to identify the sectors most important to the South West’s economy, 28% named technology, media and telecoms (TMT), 26% manufacturing and 23% tourism. Aerospace was also highlighted as a niche area with a vital role to play in the South West’s recovery.
The challenges facing each sector are different but the majority of respondents (31%) highlighted funding and investment as the most significant issues, particularly for those in manufacturing and technical industries.
Respondents were divided about whether the South West had unique challenges compared with the rest of the UK, but agreed that there were specific issues centred on geography, demographics and infrastructure which affected businesses in the region.
Jim Brown, partner at the Bristol office of BDO, said: “We are committed to helping businesses improve their performance. It is clear that this region has its own unique concerns relating to infrastructure, geography and demographics together with more generic worries such as the availability of finance, high levels of taxation and red tape. The South West’s chief concerns are exacerbated by the large number of agricultural and seasonal tourism businesses. While little can be done to address many of these endemic concerns, it does emphasise the need for investment in a solid infrastructure network to avoid businesses feeling ‘detached’ from the rest of the UK.”
When asked what they saw as the single most important stimulus for recovery, the majority (25%) of respondents identified taxation as the number one priority. Tax cuts were the most desired reform with employment taxes and corporation tax heading the list. Consumer spending and confidence took second place (19%) while bank lending and concerns over a lack of affordable credit (16%) were other areas highlighted for improvement.
