Lancashire businesses are navigating choppy economic waters in the latest round of quarterly results.
Manufacturing output in the county is down while the service sector is faring better than expected in the three months since a new government took over.
The green shoots of recovery experienced 12 months ago have levelled off – but there are more positive signs on the recruitment front with both sectors looking to bolster staff in the coming months, the quarterly economic survey suggests.
In partnership with Brabners, the survey had an increased number of responders from across the Lancashire business community, with some admitting there could be anxious times ahead.
Brabners is a purpose-led independent law firm with offices in Lancashire, Liverpool, Manchester and Leeds. Its Lancashire office is located at Sceptre Court Business Park in Central Lancashire.
The results were presented in front of dozens of Lancashire businesses at the Economic Breakfast, at The Mill, St Catherine’s Hospice in Bamber Bridge.
While inflation worries have eased, more than half of Lancashire businesses are holding back on investment plans until the Autumn Budget is announced, or even longer in some cases.
Geopolitical tensions have led to exports being hit while domestic sales are also slightly down on the last quarter. However, almost 60% of Lancashire firms have said they do not expect to put up their prices in the next quarter.
And on the employment front, manufacturing is buoying the national trend by increasing its workforce with some businesses bringing on more permanent roles in both sectors.
Babs Murphy, chief executive of the NWL Chamber, said: “Despite these challenges, Lancashire’s business community remains resilient.
“The drive and determination that characterise our region are still very much in evidence. We will continue to work closely with businesses and policymakers to provide the support and guidance needed during these uncertain times.”
The survey also featured questions on the external factors affecting Lancashire businesses and whether business leaders believe devolution can improve Lancashire’s economic environment in the coming years.
Robert White, CEO of Brabners, said: “Brabners partnered with Chamber on the latest QES given its important engagement with Lancashire’s businesses on the opportunities and challenges they are currently seeing. The survey’s timing is particularly relevant given the recent change in government, and the changing political framework that could impact them in the coming years.
“With devolution on the horizon, Lancashire is set to gain more control over its own economic decisions. However, it was somewhat surprising that the results of this survey show there is apathy in the county’s business community about how devolution can improve business operations. It is clear there is a real need for political leaders to engage the business community in a two-way conversation that inspires economic and political confidence.
“Brabners’ True North network was established to unite the region’s most influential and purpose-driven voices to unlock the true potential of the Northern economy. Our Lancashire members have repeatedly emphasised their desire to collaborate closely with the public sector on areas such as of skills development and digital infrastructure – both areas where they have confirmed a willingness to invest.
“The QES data did highlight some uncertainty, which is natural with the arrival of a new government. However – consistent with the data from our True North network and our own client base – the underlying sentiment remains broadly positive, with business leaders keen to understand more about the government’s strategy for business before cementing their plans for a new economic cycle.”
Brabners’ True North network consists of over 300 organisations committed to supporting the North’s future. It was established to unite the region’s most influential and purpose-driven voices to unlock the true potential of the Northern economy.
