Local business upbeat despite gloom

 

Newtown-based MWMG, an organisation that is run by and supports around 200 manufacturers and other businesses across Mid Wales, is buoyed by a recent survey of members, which revealed that 69 per cent are expecting business growth in 2012-‘13.

 

More than half of the businesses reported sales growth during 2011, with 61 per cent boosting sales by launching new products and 67 per cent by developing new markets. Nearly half the businesses expected to recruit more staff this year.

 

“The majority of the companies that responded to the survey are growing and are optimistic about future business prospects,” said Ceri Stephens, MWMG’s group manager.

 

“Our survey results are in line with the British Chambers of Commerce’s Quarterly Economic Survey, which showed that the manufacturing and services sectors are now much stronger than during the worst phase of the recent recession.

 

“Trading conditions remain tough but there are many businesses in Mid Wales of all sizes that are looking forward with confidence to the future. They are launching new products, developing new markets and planning to recruit more workers this year, which has got to be good news for the Mid Wales economy.

 

“The main obstacles to business growth are lack of confidence in the economy and the increased costs of fuel and raw materials. Economic confidence is a key factor for businesses and this week’s pessimistic news is hardly going to help.

 

“A double dip recession is certainly not the impression that we are getting from members and our view is shared by the British Chambers of Commerce.”

 

She welcomed the Welsh Government’s launch of small loans of up to £20,000 for micro businesses and the additional £40 million for small and medium sized companies through Finance Wales.

 

David Kern, chief economist at the British Chambers of Commerce, challenged the accuracy of the latest data, which showed a 0.2% fall in GDP in the first quarter of 2012, saying it painted an unduly pessimistic picture about the state of the economy.

 

“Business surveys, including the BCC’s Quarterly Economic Survey, have shown a more positive picture and we believe these give a more accurate indication of the underlying trends in the economy,” he said.

 

“We think it is likely that the preliminary estimate will be revised upwards when more information is available. For the time being, the main priority is to minimise any possible damage to business confidence. These figures are at odds with the experiences of many UK businesses, which continue to operate with guarded optimism.”

 

He has called on the Government to prioritise business growth. “That means reducing regulation, encouraging exports and improving infrastructure,” he added. “While the Government must persevere with plans to reduce the deficit despite these figures, it must introduce more measures to empower businesses to drive recovery.”

 

MWMG is run by and supports around 200 manufacturers and other businesses across Powys, Ceredigion, Meirionnydd and the Shropshire border.