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Business Argus

Tuesday, November 19, 2013

Exporting success
From page 1 IAC apprentices, one from Newport and the other Blackwood, were competing at SkillsUK in Birmingham last week (see page 6). Peter said: South Wales has an enormous amount to offer the country by way of skills and enthusiasm, but this has traditionally been based on heavy industry, not call centres and banks. The top employers in Newport are all service industry Patent Office, Lloyds Bank, NSO and the like. Newport is not considered by the Welsh Assembly to be an area in need of funding. There is less support available in Newport than five miles away in Cwmbran. But we shouldnt have to rely on Government; we should be building industry and getting back to making things we can sell around the world. Unfortunately, a business like IAC needs to feed off the investment in automation within the manufacturing sector, and if the big companies are not investing, then we have no market to sell to. Export now provides over half of our income. Making it easier to buy a new home in the UK is not a long term strategy and will do nothing for the economy other than drive up house prices.

The big question

THE governor of the Bank of England, Mark Carney, has said that the UK economy is growing robustly as the recovery takes hold. The bank has boosted its growth forecast for the current quarter from 1.4 per cent to 1.6 per cent. It is also predicting 2.8 per cent annual growth for 2014, rather than the 2.5 per cent it forecast in August. Weve been asking local businesspeople what they think... Cennydd Thomas, corporate finance manager at Newportbased chartered accountants UHY Peacheys After five years of bad and mixed news on the economy I think there is more optimism in the economy generally, with companies willing to dust-off those long-held investment and recruitment plans. In addition, the banks seem to be showing an increased appetite for lending in order to fund this expansion. This is good news for business and employment levels. It should be remembered that we are not expecting to see pre-credit crisis growth levels for a while, however any growth will be better than no growth. It should also be noted that the recovery is still very much in its infancy and is prone to external shocks. The retail results for the Christmas period will show how much consumer confidence has actually returned but we wont know these figures until January . In summary, there are plenty of reasons to go into the Christmas period with a glass half full mentality . Peter OToole, chief executive, RMS, Newport We have seen signs of recovery from the summer with improved retail sales. The confidence in the future has released capex for the majors to further drive competitive advantage. The independent retailers are investing as well, which is a true whiteness mark we are truly in the recovery mode. I will predict that this will be the best retail Xmas for many years

By Jo Barnes

01633 777240 jba@gwent-wales.co.uk Twitter @SWABusiness

which will finally drive us out of recession. Ieuan Rosser, managing director at Newportbased recruitment agency Smart Solutions The last nine months, and this quarter in particular, has been particularly strong for us. The number of staff we are supplying to businesses has increased 25 per cent, and we are not anticipating any immediate drop in the demand for flexible labour. This suggests that the businesses who recruit through us are in similarly strong positions and feeling confident. It is important to keep things in perspective, but it certainly does feel that things are changing for the better. Gerald Davies, chairman, Kymin, Newport Green shoots has been an unpopular phrase ever since it was used by Norman Lamont, Chancellor in the early 1990s. It turns out he was right but not before he was sacked. There is a temptation to believe that things will always get better next year, whenever that year is. I call

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Editorial Jo Barnes Special features editor Tel: 01633 777240 email: jo.barnes@ gwent-wales.co.uk Advertising Graham Harris Senior Field Sales Executive Tel: 01633 777135 email: graham.harris@ gwent-wales.co.uk Samantha Taylor Media Consultant Tel: 01633 777147 Email: Samantha.taylor@gwent-wales.co.uk southwalesargus.co.uk/ business

that the grass is greener the other side of the fence, or the other side of Christmas. As it happens, I do believe that the recovery is under way . People have shaken off the paralysis that overcame many, in the wake of the Banking Crisis of 2008/2009. As with any recovery, there will be problems along the way but I genuinely believe that the trend is now upwards. Certainly, at Kymin, we have been experiencing an increase in enquiries, leading to the highest levels of business in our 20 year history . Talking to other professional firms, the feedback is all positive, so perhaps this year we can look forward to an enjoyable Christmas and a really prosperous New Year. David Russ, managing director of the Centre for Business While it is probably too soon to say we have turned a corner, things are certainly improving. We have certainly seen a stark rise in the number of people coming to us looking for support to help get their start-up ventures up and running over the last few months. These people are the lifeblood of the economy and, with the right advice and assistance, can turn their ventures into thriving businesses that will offer more

employment to the wider community . Noel Williams, managing partner, Newport-based Kilsby & Williams Accountants In the last three months it seems spring has arrived early . Many of our clients are reporting good growth and there is a resurgence in corporate finance activity . The key now is to see the green shoots turn into a bumper crop. To do this the Welsh Government needs to ensure they listen to business and do everything they can to help this new crop grow. Graham Morgan, director of the South Wales Chamber of Commerce Recovery is certainly gathering momentum and confidence in the business community is growing. This has been a consistent theme in our surveys for the last six quarters. Now is the time to further stimulate economic growth here in Wales. This includes improving the physical and digital infrastructure, while making access to support for businesses of all sizes easier to identify through the One Stop Shop concept we have

consistently promoted. We also see massive possibilities for businesses in Wales to exploit opportunities associated with the renewable energy industry, and we must continually develop our workforce to ensure they have the skills required by this sector. Clive Thomas, managing partner at Watkins & Gunn Solicitors Absolutely! We have definitely noticed an improvement in the economy . Everyone I have spoken to, across a number of different sectors, has been buoyant and positive about the last quarter. There seems to be a real confidence in the air with people taking on staff and beginning new projects and ventures. I think that maintaining this new found confidence to grow and expand in business is essential if we want these green shoots to take root. Robert Twigg, commercial property partner, Everett Tomlin Lloyd & Pratt Solicitors Im not sure if weve turned the corner yet, but green shoots in the form of an increase in the number and frequency of instructions for commercial property transactions are starting to appear.

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