Slump hits local firms

Aug 1 2008

THE AYRSHIRE economy has hit a slump in the last three months.

The Ayrshire Chamber of Commerce this week released its business survey results for the second quarter of 2008.

It reveals that the domestic housebuilding market is suffering particularly badly in Ayrshire, while the pinch felt by independent retailers is now spreading to larger chains.

Tourism in the area is also being hit by the slowdown of the economy due to consumer confidence and spending.

But Bob Leitch, right, chief executive of the Ayrshire Chamber said that there are positive elements of the survey results.

Bob said: “It is important to put these results into perspective. Ayrshire still has a positive rate of growth, employment remains robust and wage demands are steady for the moment.

“Our manufacturing sector has seen export sales holding up, with domestic orders being reported as level or rising by a majority of businesses.”

And he added that the issues in Ayrshire are part of a bigger problem.

Bob continued: “The underlying pressures on the Ayrshire economy are well known and are largely internationally based. The survey reveals clearly that factors such as high energy and transportation costs are having a major impact on business across a variety of sectors.

“At this time we are looking for the UK and Scottish Governments to back Ayrshire business and act to address cost pressures where possible. Westminster must look to alleviate fuel taxes which are having a disproportionate effect in Ayrshire, and particularly in rural areas, where transport costs are often higher.”

And he concluded: “This survey shows that opportunities do exist for Ayrshire businesses, but they are having to fight harder and think smarter in order to seize them."