As reported by the Western Morning News on 29 January 2011
Whilst it's easy to think of all of the problems and potential issues in 2012, the truth is that there are a considerable number of businesses based in the South West, who are concentrating on looking after their customers, innovating and offering a really good product or service. Many of them, and in particular the exporters, have been able to increase their turnover consistently over the last few years. The key for the South West economy is that these businesses, too often the hidden gems of the South West, have sufficient confidence and momentum to be able to invest in new plant, machinery, premises and the opportunity to acquire other businesses. Matters remain fragile, but if those businesses who can take on more staff and who can invest in plant, machinery and premises do that then the economy in the South West will be stronger at the end of 2012 than it is at the moment."
Craig Moore comments further: "The macro economic position and sentiment around the world clearly has an impact, and there are a number of businesses who are currently sitting on significant cash reserves, but value that as insulation against potential problems more than the opportunity to invest in the business, whereas if they had a similar order book and trading performances it would have been a very easy decision a few years ago to have made the investment. However, as individuals and businesses are increasingly realising matters cannot be put on hold forever. Whilst many businesses would, a few years ago, have waited for an upturn there are a lot of businesses now of the view that the current business environment is likely to last for the foreseeable future, and therefore they need to progress their business taking that into account. Consequently, there has been some increased investment and activity in 2011."
A number of businesses continue to trade in difficult conditions, and can do so only as a consequence of the combination of low interest rates, the government's time to pay schemes and creditors not forcing the issue (and many continuing to deal with customers where there are arrears, but requiring cash on delivery and perhaps charging a slight premium). At some stage this will no doubt change and experience suggests that when confidence is returning creditors may start to force the issue by way of issuing statutory demands or starting proceedings on the basis that they may then either be prepared to take the pain if it forces their customer into an insolvency procedure, or perhaps more likely, they believe that he who shouts the loudest is likely to be paid the quickest. No doubt this will have knock on consequences. The key for the South West though is that even when some businesses become insolvent (as it is inevitable they will) that others are there to buy the assets, take on the staff and seize the opportunity presented.
The South West consists of a number of different economies including manufacturing, agriculture, tourism, education, the service sector, retail, etc. Although each of those sectors may fare differently over the course of the next 12 months most commentators would agree that those who really focus on their customers' needs, who innovate and work smarter, and who keep positive are the ones who are likely to succeed. It is very much about concentrating on what you do well. Perhaps it is also worth considering the old adage that "whatever doesn't kill you, makes you stronger".
With the South West having a considerable number of SMEs perhaps the more realistic chance for growth is for a substantial number of SMEs to be able to take on the odd additional member of staff and to invest in their business, rather than for whole scale new businesses to inwardly invest in the South West."