The coronavirus lockdown could prove to be a catalyst for growth in the South West economy if people relocate out of the cities and the region’s tech and green industries take off, a leading business voice says.
Kim Conchie, chief executive of Cornwall Chamber of Commerce, said the future could be rosy if the West Country can harness the potential of new growth technologies, and persuade ambitious movers and shakers to relocate.
He said the 21st Century could even be Cornwall and Devon’s “time to shine”.
But he acknowledges the immediate challenge the lockdown is providing for South West firms, especially in tourism and hospitality, which have been low on income since 2019.
Writing in the Western Morning News, Business Live’s sister publication, Mr Conchie said: “There’s a lot of pain in business at the moment and I don’t want to underplay that. Chambers of Commerce are continuing to make the point to Government and local authorities that businesses in hospitality, leisure and culture, for example, simply don’t have any money to pay staff even part-time or to top up any tapered furlough scheme on which we’re still waiting for details. They have no income. Some have had no customers since last autumn.
“But as the back of my mind and some of our businesses turn towards what and when ‘recovery’ might be, I begin to think how business behaviour – indeed, life behaviour – might change and what this might mean for the South West.
“I suggest the 21st Century is Cornwall and Devon’s time to shine."
He said: “The prevailing conditions that applied to conducting business in the 20th century didn’t suit us. We didn’t have the means of production for mass-produced homogonous goods, we were too far from the places where the bulk of people lived and conducted commerce and, as our traditional industries of farming, mining and fishing declined and even tourism was aimed at the lowest common denominator, we became relatively poorer.
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“But these conditions no longer apply today. The wealth creators today are digitally-enabled businesses with smart working practices, an awareness of Corporate Social Responsibility (CSR) and provenance, with craft and purpose at the heart of their strategy; and distance from markets in a digital world is irrelevant.”
Mr Conchie said that firms that firms that survive the Covid-19 crisis could benefit from new ways of working and changes in business behaviour which could “completely normalise online meetings and remote working”.
“Once businesses clock that, why would they pay city centre rents, pack everybody into one space, commute on expensive and crowded trains or buses, or drive three hours for a two-hour meeting?” he asked.
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“I have already heard there is a pent-up demand for South West residential property as the new digital business leaders want to create a better work/life balance – actually, I’m now calling this balance: life.
“That space differentiating work and life for many is increasingly blurred. Lots of people spend our working day looking at a screen; we break to pursue our leisure time, our interests, or unpaid roles often, um, looking at a screen.
“In the future, the machines might whirr in Tynemouth or Timbuktu but the leaders, the designers, the innovators, the wealth creators would surely prefer to be overlooking St Agnes or Falmouth, Bideford or Teignmouth.”
Mr Conchie said that in addition to the new ways of working, new industries are emerging as the internet and attendant technology open up different demands and possibilities for the South West.
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“The same geology that brought the wealth of tin to Cornwall and West Devon for millennia, is rich in lithium and other rare earth minerals needed for electric car batteries and mobile phones,” he said. “And Cornwall has the longest coastline of any county in England making us perfect for offshore wind to produce green energy, when the technology gets there.
“Place these alongside other industries not significant in the 20th Century like onshore wind turbines - we have the best access to the prevailing wind – and geothermal, with 60% of hot rock potential in the 海角视频 being under our peninsula; and solar, with the West Country having the most hours of sunshine in 海角视频; and you’ve got a sustainable and enviable jackpot.
“We have a thriving leisure marine sector; simply the best creative and digital mix; top food producers and processors; a spaceport and, to cock a snook at the traditional centres of academe, four universities to educate our youth and create a brain-gain from elsewhere. Why wouldn’t you want to come and study, stay and forge a career here?
“So how do we get to these sunlit uplands of new opportunity, prosperity, well paid jobs and business resilience, from the mire we are in at the moment?
“Unfortunately, there are a few factors outside our control: how long is this state of crisis going to last, God forbid we have a second spike, how long can the Government afford to pay furlough, what is the new normal going to look like in hospitality, tourism, leisure, culture spheres?
How to contact William Telford and Business Live
Business Live's South West Business Reporter is William Telford. William has more than a decade's experience reporting on the business scene in Plymouth and the South West. He is based in Plymouth but covers the entire region.
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“But these will cause degrees of delay or acceleration. Recovery will happen and we won’t be going back to some of the bad old ways. We need to make sure we have the nous, the confidence and collaboration to grasp our time to shine. It won’t happen by accident.”
He concluded: “Even though we’re feeling pretty low at the moment, we need to use this quieter time to plan our way out and forwards.
“It’s quite possible that, in 80 years, economic historians will look back and say: the 21st Century really swung into being when the Covid crisis changed how people worked.
“The changes we all want to see will play to the South West’s strengths. If we can get through the next 100 days, we can lead for the next 100 years.”