Kent Economic Roundup by Michael Bax

Some interesting insights from various business representatives at the Kent Economic Board
on 22 March.

• Avionics - business buoyant but UK a waste of time. Many orders from developing countries.
• Packaging - improved export orders but UK market soft. Japanese disaster likely to cause increase in price of world’s steel.
• Motor industry – tough and February figures worst for many years.
• Construction - current order book strong but 50% down projected 12 months from now.
• Media - signs of improvement at last.
• Legal Services - highly competitive and serious concerns over East Kent unemployment. Including contract workers, Pfizer job losses will amount to approx. 10,000, and equivalent losses are expected in the public sector in East Kent.
• Marketing - many new ideas coming through but general lack of confidence in terms of ability to promote and market response.
• Residential Development – demand is strong but the problem is supply and lack of mortgage availability. Prices are static and the main activity is from downsizing, divorcees and first time buyers. This developer had launched three sites since Christmas and has six more in the pipeline. Different funding models are required to enable viability for developer and landowner.
• Kent Ports - worth noting that Sheerness is considered to be 17th in the UK Poverty Stakes. Nevertheless the ports industry is busy in the Medway and various plans are in hand for Sheerness and Chatham/Rochester. All schemes dogged by planning uncertainty. Various opportunities on renewables, but no confidence on FIT policy which also needs certainty.
• South Eastern Rail - relatively upbeat and generating profitability, which has immediately led to reduced Government support.
• SEEDA - approaching closure and nothing finalised on allocation of Kent assets.
• Television - significant potential new work, but need for expansion including new buildings/infrastructure. Once again being suffocated by the planning system.

This theme on the painfully slow planning process cropped up again and again in discussions. Some people are simply not contemplating projects, because they need to be able to bring ideas to fruition within 12/18 months and see any serious planning proposal as taking between three and five years. A business cannot be run against that background. One individual expressed the view that the Government had “created a legislative theme park for small minds”. Localism is considered to be a disaster in the making and will be the final obstruction to initiative and innovation. Nobody understands what is meant by the “Big Society”.