South: Business leaders upbeat during debate on region’s economy, says Taylor Made

Business leaders are feeling confident about the future as the economy recovers – but it’s important that they act now to make the most of the upturn.  That was the feeling when some of the region’s most respected business figures met for a symposium to discuss the state of the economy in the south.

The event, hosted at Cams Hall by Fareham-based IT services business Taylor Made Computer Solutions, invited delegates to take part in a frank discussion about the current business conditions.

Guests were asked whether they were more optimistic than they were this time last year, given the UK’s economic forecast of 2.7% growth in GDP.

The general feeling was that confidence had grown, and that it was now time for businesses to start implementing more ambitious strategies again after a long period of caution through the recession.

Malcom Hyde, director of the Confederation of British Industry (CBI) South-East, said at the symposium: “We’ve seen optimism growing over the past nine months, and it has been more solid.

“Why? I think it comes back to the piece about a consumer-led economy. We’re looking at good consumer spending rather than it being based on debt. Coupled with that, we’ve seen government sticking to its fiscal constraints and companies prepared to invest.”

Nigel Taylor, chairman of Taylor Made Computer Solutions, added: "There are definitely hot and cold companies out there. If there was something that could be put on hold, then that is what happened, but deferment cannot go on forever.”

Business leaders also agreed that businesses needed to take action now to strategise properly to make the most of the improving conditions.

John Taylor, office managing partner of chartered accountants Baker Tilly, said: "Statistics show that 30% of SMEs don't have a strategy in place simply because they're too busy doing the day-to-day stuff. Things turn up, they grab at this opportunity and that, and then quickly find themselves over-committed and over-trading."

Mark Frettingham, head of South East Corporate Banking for HSBC, added: "Exporter confidence is at a four-and-a-half-year high according to our recent survey, and in the region we have seen a massive change in attitude to acquisitions and capital expenditure. The appetite for acquisitions is fuelled by the view that now is the time to make a decision because prices are going to move upwards."

The symposium was held ahead of the publication of Taylor Made’s 'Top 500 Companies in the South' report, which is to be launched in November. The report, which Taylor Made has taken over from PwC, is based on factors such as sales figures, pre-tax profit, net-asset value and number of staff.

Tim Walker, managing director of Taylor Made Computer Solutions, said: “As the symposium shows, there is a much more optimistic outlook in the region as companies start to feel that after a long slog, the economy is moving in the right direction.

“Businesses also know that they need to keep moving to make the most of the improved conditions, and I have a feeling that when our report is published later this year, it will reflect what we heard at the symposium and show that there are bright opportunities for businesses which have a positive attitude.”