Economic Briefing- December 2015

Economic Briefing-  December 2015

Economic Briefing - December 2015

 Thursday, 14th January 2016

December was a relatively quiet month for job announcements in the Tees Valley.

Looking back over 2015 and in terms of private sector business growth, the past 12 months has seen a significant rise in the number of Tees Valley businesses registered at Companies House.  Over 3,400 new businesses registered during 2015 with new companies setting up across all districts.  Redcar & Cleveland and Hartlepool each saw around 500 new registrations, Darlington added almost 600, Middlesbrough more than 800 and Stockton saw around 1,000 new company registrations over the year.  By the end of 2015 close to 18,800 active businesses were registered in the Tees Valley at Companies House.

Looking forward to the first three months of 2016, the latest Manpower Employment Outlook Survey for Q1 2016 reported a significant pick up in hiring intentions across the region.  North East and Tees Valley employers recorded a seasonally adjusted net employment outlook of +9%, up from a negative outlook of -2% in the final quarter of 2015.  However, hiring expectations were still somewhat lower when compared to one year ago (net balance of +13% for Q1 2015).  The latest outlook score was broadly in line with other parts of the country and a little higher than the UK average of +7%. 

Sectorally, finance & business service and logistics firms have the most positive hiring intentions for Q1 2016, whilst construction firms are the least positive and actually expect to modestly reduce staffing levels in the coming months.

 

Manufacturing

ElringKlinger (GB), the Tees Valley automotive manufacturer, has fought off global competition to win a major supply contract with Ford, securing a sales pipeline of close to £20m throughout the project lifetime. 

ElringKlinger (GB) is investing £2m in a 400 tonne Servo Press at its Redcar site which will help see production exceed 900,000 parts per annum.  The expanding company is also looking to more than double its product turnover to £40m by 2020.

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