Hopes for growth in 2013 for Greater Manchester’s businesses

Over a fifth of businesses in Greater Manchester are anticipating an increase in their staff numbers this year, according to a survey released today by New Economy.

The Greater Manchester Business Survey 2012 has been produced as a collaborative effort on behalf of the conurbation’s business base. Partners include the Business Growth Hub, Bolton Council, Manchester City Council, Stockport Council, MIDAS, and Manchester Airport.

The survey collates the responses of more than 2,400 businesses in Greater Manchester to provide a snapshot of current trends in the conurbation’s business community.

It finds that a further 69% of businesses do not anticipate a change in staff numbers this year, whilst only one-in-twenty (6%) are expecting staff numbers to decrease.

Almost one third of businesses intend to recruit an apprentice in the future. When compared to just over twelve months ago, this demonstrates a marked improvement – in Manchester in 2011 only 14% of businesses had intentions to recruit an apprentice compared to 50% at present.

Reflecting on recent activity, a third (35%) of the businesses surveyed reported an increase in turnover in 2012, despite the challenging economic conditions.

Other findings from the survey convey areas that could be improved to ensure the region’s business objectives remain aligned to the Greater Manchester Strategy.

In particular, nearly three-quarters (72%) of the businesses interviewed said they do not plan to engage in international activity.

Access to finance also remains a key issue with 57% relying on internal capital, 43% turning to the banks and 20% having relied upon friends and family.

The survey concludes that whilst many of the region’s businesses are performing well and have remained stable over the past year, there are a number of enduring weaknesses that remain in the Greater Manchester economy.

Baron Frankal, director of economic strategy at New Economy, said: “Perhaps the most surprising finding of this survey is that so many of Greater Manchester’s businesses are not planning international activity in the foreseeable future.”

“Whilst we would by no means expect every business to engage with overseas markets, the numbers suggest that plenty can still be done. Internationalisation is a crucial strategy that will ensure Greater Manchester remains a strong competitor in the global market. It is an approach that can bring growth to the region’s economy and is outlined in full in both the Greater Manchester Strategy and the Greater Manchester Growth Plan.”

Richard Jeffery, director of the Business Growth Hub, said: "There is a great deal of encouraging evidence in this report that shows how ambitious companies are driving growth and making positive progress.

“22% of growth businesses have reported an increase in staff and two thirds of businesses' turnover has increased or remained the same. The majority of businesses were also positive with regard to anticipated changes in turnover, with 83% anticipating either an increase or for turnover to remain consistent.

"We welcome this report which will help the Business Growth Hub, and our partners to better understand the issues facing businesses today and how we can tailor our existing services and develop new solutions to best meet the needs of businesses across Greater Manchester."

Sir Richard Leese, leader of Manchester City Council, said: "It's encouraging to see that many businesses in the area are displaying guarded optimism about the future.

“Manchester City Council has been working with the National Apprenticeship Service to promote to businesses the benefits of taking on apprentices, and its particularly heartening to note the increase in the number of employers who seem to have taken this message on board.

“We understand that businesses are operating in a difficult environment and, working with our partner agencies, will continue to do everything we can to support economic growth and job creation."

Councillor Iain Roberts, executive member for economic development and regeneration at Stockport Council, said: “This new business survey is a useful tool for us to identify opportunities and engage with local businesses.

“The results reconfirm Stockport’s strengths as a premier business location. Local businesses highlighted access to customers and suppliers, transport links and the image of the area as key benefits of locating in the borough.

“The survey revealed that 8 in 10 Stockport businesses have engaged in innovation over the last three years, 17% increased staffing levels over the last 12 months and 25% expect to increase employment in the next 12 months.”

Bolton Council’s cabinet member for economy, housing and skills, Councillor John Byrne, said: “We carried out the survey to give us a better understanding of the needs of our businesses. A fifth of the firms surveyed are anticipating an increase in growth in employment in the next 12 months.

“The research also found that two out of every five businesses are also anticipating an increase in turnover. Given the difficult climate we’re in this is positive news for our local economy.”