Increased competition post-recession
Business leaders believe they face tougher conditions as the UK economy recovers
Competition will be tougher during the recovery than throughout the recession, UK businesses believe.
Nearly 60% of business leaders surveyed by Barclays Bank said they thought competition in their industry would increase post-recession, while 27% expect it to be ‘much more competitive’.
Businesses also doubt a return to pre-credit crunch demand is on the cards. Some 46% say consumer demand will not outstrip previous levels for the foreseeable future, while 37% feel the same way about business-to-business sales.
However, despite modest expectations for post-recession sales, more than two thirds of companies said the recession had been the catalyst for continued or increased innovation.
Ian Stuart, managing director at Barclays Corporate, said: “Innovation today means exploiting healthy economic growth rates abroad while developing an offering able to thrive despite depressed demand at home.
“With confidence returning and growth back on the agenda, 2010 should see UK businesses competing aggressively for market share once more.”
The research also revealed a quarter of business leaders believe the tech, media and telecoms sectors are best prepared for a post-recession economy.
A further 24% are either already hiring new staff or planning to take on people early this year. Nearly half said they expect to hire widely again in late 2010 or early 2011.
© Crimson Business Ltd. 2010