The Press and Journal (Aberdeen and Aberdeenshire)
Technology – boom or bust?
Study: Report lists biggest opportunity and significant threat to economy
Technology is both the biggest opportunity and a significant threat to the success of the north-east economy, a survey has shown.
The annual study measuring the temperature of the region’s economic outlook takes place each year for North East Business Week (NEBW).
The latest survey of 217 businesses revealed that while the rise of new technology – such as the effect of Uber on the taxi industry, for example – was both an opportunity and a threat, most firms feared the prospect of political uncertainty as a bigger risk to the north-east economy.
Nearly three-quarters (73%) perceived the prospect of a second Scottish independence referendum as a threat, while 51% believed Brexit is a threat.
For those looking for the most likely opportunity to grow their business in the nest two years, 39% said expanding their market in Scotland was the best bet, while only 15% would look to expanding in the UK or internationally.
With the impact of the fall in the price of crude oil still being felt on the region, respondents to the survey
“The north-east is preparing for a renaissance driven by initiatives”
who had been made redundant were asked how they would define this in retrospect – and 78% said it was “ultimately a positive experience” which the report said might be “reassuring” to those who feel the experience has not been positive.
The theme of NEBW, which ends today, was Opportunity Driving Growth and was led by core business support organisations Aberdeen and Grampian Chamber of Commerce (AGCC), Elevator, the Federation of Small Businesses (FSB) and the Scottish Council for Development and Industry.
AGCC chief executive Russell Borthwick said: “Despite the recent challenges there are significant opportunities for sustained growth in the economy.
“The north-east is preparing for a renaissance driven by initiatives such as the City Region Deal, city centre masterplan and the diversification of the sectors driving our economy.
“Additionally, the chamber’s investment tracker tells us there are £5.3billion worth of infrastructure projects underway.
“There is much to be positive about but the fact that three out of four respondents to this survey do not feel involved in the future economic success of the region tells us there is a disconnect between those working on the vision for the city region and the people and organisations who will be an integral part of achieving it.
“It isn’t just the job of our two local authorities and Opportunity North East to deliver this. It’s vital that people understand how they can get engaged.”