OVERALL, the Top 50 SMEs in North Yorkshire contribute turnover of £574 million to the North Yorkshire economy, generate pre-tax profits in excess of £54 million and employ more than 4,100 people.
These numbers show growing confidence and investment in the region where total profits of the Top 50 grew by 20 per cent and average profits per employee are £13,300. The area’s contribution to the Northern Powerhouse should not be under estimated.
The strongest performing sector is services; total profits grew by 30 per cent.
The sector’s diverse makeup includes property developers, insurance brokers, hoteliers and holiday parks, marine oil and gas, building products and construction, haulage, communication and education.
In the wholesale sector, total profits grew by 17 per cent. Half of the wholesalers in the survey supply to the food industry. Pharmaceuticals, healthcare and chemical and man-made product wholesalers feature heavily amongst the remaining 50 per cent.
The manufacturing sector, represented by seven firms in the survey, showed growth in total profits of 12 per cent.
Retail was the only sector where total profits have declined, falling by 19 per cent. The high street continues to be challenging.
However, the reports from the Government that income levels are now back to pre-recession levels, combined with the lowest level of inflation for decades, falling energy costs and low interest rates, should provide a boost to the high street.
At the heart of the North Yorkshire economy is York. Growth projections for York up to 2030 suggest that its employment will grow at over four per cent more than the UK average.
It is not surprising therefore that businesses based in York employ 60 per cent of the employees in the Top 50 and contribute 47 per cent of pre-tax profits.
Profits are the fundamental driver of a free market economy. They drive tax revenues, salary rates and investment. If profits are growing, everything else should follow.
Undoubtedly there is some uncertainty around, with the general election looming. It is to be hoped that whatever sort of government we wake up to on the morning of May 8, they will be committed to delivering sustained growth to help drive the economy of York and North Yorkshire forward.
- Jane Marshall, Partner BHP
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