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Bernard Ginns: Look to the firms who refuse to take part in the recession
LAST week's column seems to have struck a chord among Yorkshire's business community. To recap, it was a rant against the merchants of misery who seem to delight in telling us at every opportunity that UK plc is heading for the U-bend.
The doom-mongers seem to have found a cheerleader in Jim Rogers, the American speculator who got lots of media coverage when he announced that the pound was "finished" and people should avoid investing in Britain.
I am delighted to report however that this sentiment isn't shared by the men and women who run businesses in Yorkshire, judging by the tone of correspondence from our readers.
First comes an email from Neil Liversidge, the managing director of Castleford-based West Riding Personal Financial Solutions, who said: "I almost fell for the doom and gloom line that every business is heading for trouble and should contract to cope with the recession.
"So when a staff member recently announced her impending departure for pastures new my initial inclination was not to replace her immediately. It didn't take me long to realise however that in so doing I would be choosing to voluntarily downsize my business.
"Personally, I refuse to participate in this recession and I don't intend helping anyone else into recession either, so for the last two weeks I have been interviewing for a new trainee."
Neil said he has received a wealth of excellent applications via Connexions, the employment service for young adults. He added: "I do not expect the next year to be easy, I don't know anyone who does, but with hard work and well-motivated people we aim to come through it and to help our clients do the same." Another email came in from Louise Vaughan, a director at Harrogate-based Acceleris Marketing Communications. She said: "There are many challenges ahead for many companies in the next few years but there are also silver linings for those businesses with the flexibility, vision and drive to identify strong opportunities within and go after them.
"As a fledgling marketing company of two years you could argue that Acceleris would be a likely credit crunch casualty at a time when businesses are reining in their spend, but on reaching the end of our second year in December we've posted gross revenues of 1.5m, marking a 28 per cent increase on our first year."
Suzi Cawood, head of the York and North Yorkshire Chamber of Commerce, emailed to tell me that the reality in her part of the region "is nowhere near the depression stage that is being reported".
She said: "I am not nave enough to believe that firms are finding the current trading environment easy. Far from it; the facts speak for themselves.
"Some businesses are closing down, but we have to ask ourselves, would these businesses have closed down anyway, regardless of a recession?
"One point we are trying to encourage above all others is that now is the time to be investing, be it through marketing, the training of staff or simply encouraging our members to trade with one another. This way, their businesses will be in the strongest position possible when the inevitable recovery, be it real or perceived, comes."
This point is worth looking at again. It is an argument being made by the new Business Ambassadors for Yorkshire. Leading figures such as Andy Bond of Asda, Mark Andrews of NG Bailey, and Jan Fletcher of Montpellier Estates are urging businesses to consider training opportunities for their staff.
"It may be easier now to release staff for training," they say. Businesses also should look to improve customer service and concentrate on marketing more effectively.
Good points. Businesses might also want to look at what's on offer from Business Link. We paid for this service through our taxes after all so we should take all the help we can get. Finally, I would like to address Jim Rogers and his claim that the pound is finished. Yes, it is plunging to new lows. But with every cloud comes a silver lining.
David Tinsley, the Yorkshire Bank economist and former adviser to the Bank of England, said the lower level of sterling and trade links with developing economies will provide businesses with opportunities for growth.
"Net exports are likely to provide a lift," he told an audience in Leeds last week, "especially if sterling falls back against the dollar and any contagion of the credit crunch to emerging markets is contained."
There are opportunities out there. My message is to make the most of them. See you next week.
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Weather for Yorkshire
Wednesday 23 May 2012
Today
Sunny spells
Temperature: 11 C to 24 C
Wind Speed: 12 mph
Wind direction: North east
Tomorrow
Cloudy
Temperature: 9 C to 22 C
Wind Speed: 12 mph
Wind direction: North east
