A group of Coventry businesses say confidence is rising on the back of the latest round of GDP figures which confirmed the economy is growing.
The latest figures from the Office for National Statistics said GDP had grown by 0.6 per cent between April and June, building on 0.3 per cent growth in the previous quarter.
The Coventry and Warwickshire Chamber of Commerce’s Coventry branch met to discuss the issues facing the city but committee members confirmed that there are signs that business is picking up.
Dhiran Vagdia, the branch chair and director of architectural firm Vagdia & Holmes, said: “In construction, there is certainly some positive movement.
“The larger developers are saying that they are busy, and some of the smaller construction companies are busier now than they have been for some time.
“We are also seeing a rise in start-up construction businesses, perhaps from individuals who have been made redundant and are now going at it alone.
“All of that means that firms such as ours and other service providers within the sector see a rise in enquiries because we are needed to fulfil the needs of those companies.”
He added: “In general, the business scene in the city does appear to be more buoyant based on some of the anecdotal evidence we heard from our branch committee and also from figures such as GDP and our own quarterly economic survey.”
Branch member Larry Coltman, of Coltman Warner Cranston – a firm specialising in debt recovery, said the evidence he had seen suggested the economy was improving.
He said: “We actually see both sides. We see the companies that are investing and the companies that are failing and it is those who are starting to invest again who are on the rise and the failures have decreased.
“That has to be a positive indicator for the local economy.”
Amrik Bhabra, the president of the Chamber and managing director of ADECS – an IT firm based in the city, said: “We have seen a pick-up in interest.
“In my view, many companies have put off investment in crucial aspects of their business – such as their IT systems – because of the economic outlook.
“The mood has changed slightly and many businesses are beginning to see that they cannot put off these decisions any longer and, therefore, have to invest.
“Hopefully, that can have a knock-on effect for the economy and we can start to build longer-term, sustained growth.”
Tim Squires, of Squires Gear & Engineering – an automotive parts supplier with customers across the world, said business was picking up.
He said: “There has been some positive movement and last month was our best of 2013. August is traditionally quiet in our sector but when we look beyond that, schedules are looking strong.
“We are not getting over-excited because there is still a great deal of caution out there but there is certainly more optimism.”
David Penn, a board member of the Chamber and managing director of commercial property specialists Shortland Penn + Moore, believes the improving fortunes in manufacturing are fuelling growth in the market.
He said: “Our activity, especially on industrial units, is certainly up and that is a positive sign.
“I always believe that once we start to see improvement in the commercial property sector it is a good sign that the overall economic picture is starting to improve.”
Later this month, members of the Coventry branch committee will be meeting Coventry City Council leader Ann Lucas to discuss the future of the city.
