West Midlands 2012
2/8/11
11:35
Page 82
CONFIDENCE UP DESPITE SLOW RECOVERY
Mike Ashton, West Midlands Chambers of Commerce
Confidence amongst West Midlands businesses has remained static for the past 12 months – but it is still hugely better than it was at the height of the recession two years ago.
F
igures from the West Midlands Chambers of Commerce (WMCC) quarterly economic survey (QES) show that 63 per cent of manufacturers and 57 per cent of service sector firms remain confident their turnover will increase during the next year. That compares to 62 per cent and 56 per cent respectively a year ago (2010). However, two years ago, only 38 per cent of manufacturers were expecting an increase in turnover, and 50 per cent of service firms. It is a similar picture on the export front, with 41 per cent of manufacturers seeing an increase in sales in the last quarter, compared to 39 per cent in June 2010. A year prior to that, the figure was just 22 per cent. At home, 44 per cent of manufacturers have seen increased sales in the last quarter, the same figure as a year ago, but well above 2009’s 14 per cent. For the service sector, the pattern is much the same where sales figures are concerned. WMCC spokesman Mike Ashton said: “The figures do at least suggest a stability in
WEST MIDLANDS CHAMBERS OF COMMERCE 82 THE Directory 2011/2012
confidence, which is going to be a key factor in the recovery of the local economy.” “And with low interest rates and the weak pound, exporters in the region are continuing to benefit. Our goods are now more competitive abroad.” In terms of workforce, neither the manufacturing nor service sector is as confident as it was a year ago that it will be increasing its staff numbers. For the service sector, only 20 per cent of those surveyed believe they will be adding to their workforce in the next three months, compared to 27 per cent a year ago. For manufacturing, the figures are worse, at 23 per cent and 36 per cent respectively. This, however, is against a backdrop of an increasing workforce overall – two years ago, only ten per cent of manufacturers were able to report an increase in the number of people they employed, and 15 per cent of service sector firms. Mr Ashton said: “Anecdotal evidence suggests that employment is expected to grow at a steady pace, particularly among firms who are taking advantage of conditions and exporting.”
‘4 PER CENT OF MANUFACTURERS HAVE SEEN INCREASED SALES IN THE LAST QUARTER’