North East businesses give their views on positive GDP figures
Following the announcement that the UK economy is now ahead of its pre-crisis peak, after growing by 0.8% in the second quarter of the year, leading businesses in the North East have given their views on the positive figures.
Paul Moore, Group Managing Director of construction and development specialist Southdale, said: “Today’s headline figure on GDP looks very positive for the economy and, while we must never ignore that, a closer look at the details shows a 0.5% decrease in output in construction. This can be remedied by Government putting a greater focus on boosting housing, and this needs an holistic approach with politicians looking past figures, which are skewed by prices in London and the South East and making decisions, which benefit the whole country.”
Mike Odysseas, Managing Director of Odyssey Systems, said: “For companies that have weathered the economic storm, today’s figures are very welcome. They represent the hard work, flexibility, ingenuity and commitment of UK businesses that have battled through the past six years to help the economy gain momentum and return to pre-recession levels of growth.
“The service sector, which includes our business, continues to lead the way and is an excellent litmus test for where the economy is growing. We are experiencing increasing levels of confidence from businesses that are prepared to invest and have their eyes firmly set on the future rather than previously just having to survive in the here and now.”
George Rafferty, Chief Executive of NOF Energy, which supports more than 470 members in the oil, gas, nuclear and offshore renewable sectors, has called for increased investment in the oil and gas industry as GDP rose by 0.8 per cent.
With the latest rise, and the International Monetary Fund forecasting the rate could hit 3.2% by the end of the year, Mr Rafferty said: “The sector is always in the spotlight as a crucial part of the British economy and the time is right for investment.
“The longevity of our oil and gas operations is central to the UK’s future prosperity and the vast supply chain reliant on its success needs to see a vote of confidence in technology and skills to keep production high and maintain our world-leading reputation.
“Growing the sector now is the only solution. It will secure and create thousands of jobs, and give the UK an unbreakable lifeline of prosperity.”
Willie O’Neil, Contract Lead at Nortech Oil & Gas, part of the Nortech group of companies, a successful professional engineering design and project management company based at Wynyard, said: “Today’s growth figures are positive news for the economy as a whole. The GDP figure of 0.8 per cent officially marks an end to one of the longest recessions in British economic history.
“North Sea oil & gas is experiencing record levels of spend as old platforms require upgrades and life extensions, and new fields get deeper and the oil gets heavier. The solutions that process engineers can offer are therefore now more critical than ever.
“Continuing investment by UK oil and gas companies is a key component of growth. Investment creates a virtuous circle that drives a momentum to service the growing supply chain, which is also a key contributor to the UK economy.
“As part of this supply chain, Nortech Group is undergoing strong growth and development. Turnover has steadily increased to £10m and we have taken on 86 new members of staff since starting up with a team of four in 2011. The oil and gas sector has plenty of scope for further growth, and the North East and its supply chain are perfectly positioned to support that growth.”
Self-styled Business Battle-axe Amanda Vigar, Managing Partner, V&A Vigar (Darlington) LLP / V&A Bell Brown LLP, welcomes today’s positive growth figures of 0.8 per cent, which return the UK economy to pre-recessionary health.
Amanda, who has a blog where she champions small business at http://businessbattle-axe.blogspot.co.uk, said: “The growth figure is positive news for the UK economy as it is the strongest we have seen since 2008. I speak to small and medium sized businesses every day and I am also proud to count my business among their ranks.
“SMEs are the very lifeblood of our economy; and while their fortunes are certainly improving, much more needs to be done to support their growth. From increasing sanctions on late payers to encouraging the banking sector to be more supportive of realistic expansion and investment plans, there is still a way to go. HMRC could also do with a root and branch reform. Its processes are encumbered by bureaucracy and by a lack of resources which are throwing up errors.”
Waltons Clark Whitehill, the Teesside-based firm of chartered accountants and business advisers, has welcomed today’s GDP figures.
Heather O’Driscoll, Managing Director of Waltons Clark Whitehill, said: “It is good to see the much-expected return to pre-crisis levels in terms of GDP, but there is still much to do before we really feel that the economy is as healthy as it can, and should be. This is good news, however, and we should welcome today’s figures and take positivity from it to help us drive towards even better times.”
This was posted in Bdaily's Members' News section by Recognition PR Business Team .
Enjoy the read? Get Bdaily delivered.
Sign up to receive our popular North East morning email for free.