News
2007 Creative & Digital Business Survey
Published 15.11.07
Manchester’s creative and digital industries are confident on growth, innovative in their products and services but are often too heavily focussed on the local marketplace, a report commissioned by CIDS has found.
The ‘2007 Creative & Digital Business Survey’ was undertaken by Manchester Enterprises for CIDS, with over 350 businesses contacted by phone and a further series of one-to-one interviews undertaken.
80% of respondents were expecting to grow within the next year with a significant amount looking to invest in their businesses, whilst a third of the companies interviewed were looking to take on staff during the same period. Perhaps the most significant indication of the sector’s confidence comes from sole traders: with a quarter of them looking to make the transition into employers of staff during the next twelve months.
However, all of the positive noises about taking on new staff are tempered with concerns over difficulties recruiting for existing roles – in particular new business generation and higher-level technical skills. In part, a lack of training for people already in employment is cited as a barrier, with many companies sourcing training from London.
Unsurprisingly, given the nature of the sector, Manchester’s creative industries fare well with regards to innovation - over half of the interviewees reported that they’d introduced new products or services within the last year, with 80% of these being completely new to the marketplace. Smaller companies are performing particularly well in the innovation arena, a ‘do or die’ mentality means that they have to differentiate their offer from their competitors to survive.
A large proportion of companies are trading only within local markets - reflecting the wider regional economy in recent years, where local trade has been sufficient to drive growth. International aspirations are low, with only 23% of companies trading overseas and just 18% of the remainder planning to work internationally in the next two years. This over-reliance on local markets could make businesses vulnerable to fluctuations in the regional economy.
Image, talent and communications were the three things people liked most about Greater Manchester, in contrast with the last survey of this type in 1998 where image, communications and the rail link with London were met with strong dissatisfaction. However, the improved image of Manchester has brought its own problems with it, as more and more business owners are finding it difficult to get affordable premises in good locations.
Currently, the sector is contributing a cool £2.7 billion in ‘Gross Value Added’ to the ‘city region’ economy and employs 77,000 people. The survey gives a clear signal that the creative industries in Greater Manchester will continue to grow in the coming years. It also offers some insight into what support might be needed to achieve this.
Keep up to date by viewing the report and action plan updates on the CIDS website.
