Positive Signs for South Yorkshire Economy

4th July 2013

As we enter the second half of 2013 and the fifth year since the start of the banking crisis you could be forgiven for thinking it was Groundhog Day.

There is still debate between government, banks and business about access to finance. The news-cycle continues to include reports of fresh banking problems, but behind all the rhetoric there does seem to be a glimmer of hope. Our involvement with the Regional Growth Fund has given us access to companies who are willing to invest considerable sums in new opportunities. Whilst the RGF system does provide grant support, the commitment from these companies does highlight our view that the -recession is very much multi-sided. There continues to be talk of zombie companies, but in general the discussions are quieter. Banks continue to be cautious but there appears to be the feeling that they have got their act together and are now focusing on outward investing as opposed to internal restructuring. Manufacturing companies that have restructured and modernised are now benefiting from new opportunities in local and international markets. Whilst there are strong indications that the South Yorkshire economy has weathered the storm there are some key issues facing the region. The continued debate over the High Speed rail link and its route through the region continues to create doubt and uncertainty, especially for those Companies that are in the firing line. The delay in the redevelopment of Sheffield City Centre, and the debate over whether Next and Ikea will locate in the region puts the region under the international micro-scope. These decisions, whilst not directly impacting on business do reflect on the regions ability to plan and invest for the long term look to attract prestigious businesses and their employees into the region. Businesses in the region have an excellent reputation in international markets for innovation and quality but we have to ensure we have a 21st Century infrastructure to support our international partners in their decision to select the region over our close competition. Steve Bell, Head of Corporate Finance. T: 0114 251 8850, Email: steve.bell@hartshaw.co.uk.