One of Lloyds Bank's top directors has said there is hope for the North West's resilient business community after a year of unprecedented blows.
In his review of a tumultuous 2020, Martyn Kendrick, regional director at Lloyds Bank, spoke to BusinessLive about his reflections on the year - and what he expects from the next 12 months. With vaccine-related hope fueling the potential for optimism, he said businesses will be looking at ways to create recovery opportunities and to capitalise on growth.
“At the start of this year, North West business confidence was relatively high,” Mr Kendrick said.
“Efforts to rebalance the economy and bring greater prosperity to the North were gaining traction, while the increased local investment seen as a result of the ‘levelling up’ agenda led many to believe a year of record growth lay in store.
"Come spring and this initial momentum came crashing to a halt as the country was hit by the unprecedented public health crisis of Covid-19.”
According to figures from Lloyds Bank’s monthly Business Barometer, confidence among North West businesses fell 58 points between February and May. But there’s early signs that the tide may now be turning.
“While uncertainty and challenges remain, the deployment of a vaccine and success of mass testing trials like the one seen in Liverpool have given businesses a degree of cautious optimism to begin edging closer to a more positive outlook.
“Meanwhile, the government’s National Infrastructure Strategy and plans to get the region building again will go a long way to create the conditions needed to help drive the region’s economic recovery and boost job creation.”
Most Read
The latest Business Barometer figures appeared to confirm that view, with confidence among the region’s businesses rising 15 points in December, while companies in three other regions returned to net optimistic positions for the first time since March.
Mr Kendrick added: “The region’s firms are resilient, with some sectors such as manufacturing defying expectations in recent months – even as lockdown restrictions put the brakes on other parts of the North West economy.”
One such firm was Faith in Nature, a Bury-based manufacturer of ethically-produced beauty products, which received a £250,000 loan from Lloyds Bank under the Coronavirus Business Interruption Loan Scheme (CBILS).
After seeing demand soar during the pandemic, the company ramped up production of its handwash products and soon became a number one bestseller on Amazon.
This resulted in large retailers like Tesco turning to Faith in Nature to step in and fill the gap in their supply chain after rival brands struggled to meet demand.
“We’ve been working closely with businesses like Faith in Nature throughout this crisis, providing support not only to help them through the challenges of local and national lockdowns, but to adapt and give them the security to plan for the longer-term,” said Mr Kendrick.
“We’ve been struck by the resilience and innovation shown by many of the region’s firms, who’ve pivoted their business models and discovered profitable new ways to operate – something that’s sure to pay dividends in the year to come.”
Don’t miss
One firm forced to act fast when the first lockdown hit was Merseyside uniform supplier, Florence Roby. The family-owned business specialises in the design and manufacture of workwear for the hospitality, beauty, and leisure industries.
Many of its customers – including Champneys, Clarins and Everton Football Club – were forced to close when the 海角视频-wide lockdown came into effect, so the business decided to diversify and began manufacturing personal protective equipment (PPE) for teams on the frontline of the NHS.
In the months following, the business also achieved the Home Office approval and certification required to begin producing specialised PPE like surgeons’ gowns and drapes for hospital trusts including Alder Hey.
“Whether it’s manufacturers switching their product lines, restaurants and pubs shifting to takeaway services, or retailers ramping up their online presence, the region has proven its ability to adapt – and that can only bolster its recovery efforts as we move into 2021.”
When asked about Lloyds Bank’s own commitment to the region and plans for the year ahead, Mr Kendrick said: “We have a strong presence in the North West and our commitment to businesses in the region remains as robust as ever.
“No matter what the months ahead may have in store, we’ll continue to be by the side of businesses in the North West, providing the guidance and support they need as we head into 2021, and beyond.”