Businesses in Hampshire are confident that economic growth is on the way despite a still-fragile recovery and concerns over skills gaps.
These are the main findings of the first independent poll of Hampshire Chamber of Commerce members since the General Election.
Half of the 124 companies who responded to the Chamber’s latest quarterly economic survey said they were having difficulty in recruiting staff, especially for roles involving professional, management and technical skills.
County firms are however continuing to invest in training, with 19% of respondents saying they had actually upped their budget plans in the past three months.
This finding bucks a wider trend that has seen many south east employers making cuts in training because of cashflow pressures.
Also comparing well with the business outlook elsewhere, 32% of Hampshire Chamber respondents say they are expecting to take on more staff in the next three months.
Mark Baulch, Business Development Manager at Hampshire Chamber, said: “In exposing the skills gaps facing so many Hampshire employers, our survey reinforces calls from government and the chamber network for schools and business to work more closely together to provide new recruits that are ready for the workplace.
“A concerted effort to improve skills that will keep businesses competitive is essential given that the ‘baby boomer’ generations are set to retire from the workplace in large numbers over the next few years. Hampshire Chamber of Commerce will be announcing several schemes in the coming months to help with this.”
The survey, which covers both service and manufacturing sectors, found that general business confidence is improving. More than three quarters of respondents were confident that turnover would increase over the next 12 months, with 63% saying profitability would rise too.
The outlook for Hampshire exporters is still mixed. While 40% reported a growing order book, 19% said orders were down. Among the pressures on reaching overseas markets are the strong pound and uncertainty for those companies selling into the eurozone given the Greek debt crisis.
Respondents were also asked to rate a series of external factors that cause concern for businesses. Thirty-seven per cent put inflation at the top, while 22% were most concerned about competition. Seventeen per cent cited business rates as their greatest worry.
Mr Baulch added: “We had a dramatically higher response to this quarterly survey than we have had in the past, an indication that businesses are thinking about their futures with more confidence again. The overall message, as we digest the latest Budget measures, is that we are seeing a gradual recovery being recognised by businesses but the pace is still fragile and there remain considerable challenges ahead.”
