Bad times for the South West.
2009 is set to a dismal year what with the recession, unemployment and loss of profits across the board – well apparently the worst affected area of the United Kingdom is set to be the South West according to researchers of the market.
Analysts with the Regional Development Agency (RDA) have announced that the worst hit region in the United Kingdom throughout the rest of the year is set to be the South West which will see a hike in unemployment and closing companies.
The announcement proves that small firms will have to use every trick in their business books to pull through the difficult year as they are set to weather the worst of the storm.
Access to funding behind the issues for small firms…
The RDA’s organisation’s chief economist, Nigel Jump, has stated that one of the biggest issue around the South West will be the lack of access to funding for the small firms in the area.
Jump also underlined how the region would not be able to benefit from an export boost as the world is feeling an international reduction in demand.
Jump also highlighted the areas in the South West that are set to be hit the worst, being Bristol, Gloucestershire, Swindon and areas within Dorset, all set to be made to deal with issues in the financial and manufacturing sectors.
South West experiencing worst fall in sales.
A recent survey has also shown how the South West of the country will also be experiencing the worst fall in average sales figures, dropping by 23 per cent, the worst fall in the country.
Other areas in the country that are facing terrible sales falls are the West Midlands and London who are not far off the South West’s dreadful outlook.
According to the director general of the Finance and Leasing Association, Stephen Sklaroff, “The financial crisis in the City may well have contributed to the clearest North-South divide for some time.
“But there is growing evidence that the problems in the capital are rippling out to every other area of the country, and SMEs in all regions are braced for an extremely challenging year.
“This survey shows that the economic downturn is affecting different regions in different ways. The challenges for London SMEs need to be taken seriously. Small businesses across the capital are facing tough credit conditions and finding it difficult to get their bills paid on time.”
New ways of dealing with a recession need to be looked at…
Small firms in the South West must look at new ways of fighting the coming economic troubles according to Nigel Jump.
“Businesses are looking at new ways of working and new market opportunities, as well as making contingency plans for severe cost reductions, including layoffs,” announced Jump.
However, it isn’t all bad news for the South West as Bath and other similar tourist destinations are set to benefit from an increase in domestic tourism due to the public looking at saving their pennies.
Meanwhile, Plymouth are looking at being able to enjoy some protection due to public spending programmes taking place in the area.
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