Region’s positive spirit will pay dividends in 2012

The IoD doesn’t have negative stories to tell. More often, it says, the talk in Yorkshire is of success stories in emerging industries and growth in established sectors, adding the real threat is that we talk ourselves into another recession.

Yes, it is tough, the recent Euro debacle hasn’t helped but there is real growth out there in key industries that prove businesses across the region are getting on with it.

Stephen Burwood is chair of the North Yorkshire IoD and in daily contact with real businesses.

“Key areas that have succeeded include food and supporting industries, such as packaging, waste recycling, PC-type businesses such as game developers and some recruitment sectors such as IT and construction.

“There are a number of new start-ups that have evolved over the last two years that are confident that if they can make it now, which most of them are, that when they come out of the other side they’ll be well placed. These businesses are generally run by driven people – some of whom have been made redundant – and aren’t prepared to give up.

“Those that are struggling are those where cash flow is tight and where bank support is either being withdrawn or where swingeing rates of interest are now being charged. Often these businesses are in the property rental sector, which should be doing well as there is good demand, but property values have fallen which has exposed the companies to ‘unacceptable’ levels of gearing.”

Richard Tuplin, chair of East Yorkshire IoD, adds: “2011 has been the year that East Yorkshire and Hull believes in itself. The area has recognised the potential it offers investors, particularly in the renewables arena which has been backed up by the formal planning application by Siemens and ABP last week.

“This has meant the supply chain is gearing itself up to meet the needs of this development and it’s important that the newly- formed Humber LEP gets hold of this.

“This area is known for its entrepreneurialism, work ethic and willingness to survive, we have shown this in 2011 and it will pay dividends in 2012.”

Looking forward, the chair of Yorkshire IoD, Margaret Wood is optimistic that Yorkshire’s in-built versatility will be a key advantage.

“Adaption and flexibility are the key words for the next year. Small businesses will offer a valuable part of this process. As new markets emerge and the way of doing business alters those who have embraced technology who will have the competitive edge. As will niche businesses; their strength will be in their uniqueness.

“The challenge is to make politicians recognise that without a buoyant balanced private sector, the public sector is in trouble.

“Next year must be about the key value of making money and spending it wisely. That’s where Yorkshire can demonstrate leadership among the regions.”