Majority of north-east firms to add jobs as economy improves

The expected results have lead to more than a third of companies looking to grow their workforce.

By Alex Banks

July 19 2024, 6:00 am

Russell Borthwick, of Aberdeen and Grampian Chamber of Commerce. Image: AGCC

A new report has revealed almost three quarters of firms in the north-east are looking to grow their staff numbers in order to keep up with demand.

The north-east quarterly economic survey has been released by Aberdeen and Grampian Chamber of Commerce (AGCC).

It shows 58% of Aberdeen and Aberdeenshire businesses believe their turnover will grow in the next year, with overseas demand increasing.

71% of north-east firms are actively looking to grow their workforces.

The north-east quarterly economic survey from AGCC benchmarks key indicators in the region’s economy against the wider UK.

Business environment needs growth, says chief executive

AGCC chief executive Russell Borthwick is hoping new Prime Minister will provide “much-needed” economic stability.

He said: “We have written to the new Prime Minister in the hope that his government can provide the much-needed economic stability that will create the conditions for business to thrive in every part of the UK.

“But selfishly our focus is very much on supporting our members and the wider North-east community.

Russell Borthwick, right, is looking to the new Prime Minister Sir Keir Starmer to help the north-east business environment for continued growth. Image: AGCC

“We need the Prime Minister to deliver on his commitment to forge a new partnership with business to boost growth.

“And to work with his government to ensure that Aberdeen and Grampian is in pole position to deliver an energy transition that secures investment, jobs and creates the opportunities everyone covets in the clean industries of the future.”

Mr Borthwick is looking for an environment which encourages “enterprise, start-ups, scale-ups and sustainable multi-sector growth”.

He added: “The pressures of business taxes and spiralling costs has stretched many firms to breaking point over recent years.

“We are hopeful of an improved partnership between our UK, Scottish and local governments in seeking to address this – and a range of other matters – in a meaningful way.”

Other key findings from the latest quarterly survey

48% of businesses in the region are still concerned about high taxes.
In the first quarter of this year, the report revealed 52% of Aberdeen and Aberdeenshire businesses felt high taxes has become the biggest growth barrier.
45% expect the price of their goods or services to increase in the next three months.
Domestic orders continue to slide for north-east companies, but international demand is soaring ahead of the UK average.

North-east businesses growth performance on international stage

Findlay Anderson, a partner at Gilson Gray, who sponsor the survey, said focus should be on export potential in the north-east, despite domestic sales lagging behind the UK overall in the last quarter.

He said: “Whilst domestic sales performance in the north-east has lagged the UK during the last quarter, export performance has increased with 39% of local businesses seeing improvement during the quarter versus 28% elsewhere in the UK.