Finding our way through the recession

But scratch the surface and evidence suggests the county is faring better than other areas of the UK.

While many firms have been hit hard, managers and entrepreneurs are moving with the times, changing direction and altering working practices in a bid to keep on track and take advantage of the upturn when it comes.

David Doughty, chief executive of the Oxfordshire Economic Partnership, said: “There has been an element of battening down the hatches, people keeping hold of their cash and not investing.

“But generally the recession has not hit as hard as it could have done.”

Mr Doughty admitted that some county areas, such as Banbury, have been badly affected with redundancies at car parts suppliers.

Cowley is still reeling from the effects of more than 1,200 agency staff being axed.

But while unemployment in the county has risen by more than 150 per cent in the last 12 months, just 2.4 per cent of the workforce does not have a job, compared with the national average of 4.1 per cent.

Mr Doughty said: “We’re better off because of the mix of businesses here. We’re not so reliant on large employers.”

He said there were “hidden effects” of the recession, which may only be seen in the longer term.

“Banks are not providing as much liquidity as businesses would want,” he said. “While they might survive, they won’t get to a level they would have done normally.

“Businesses need to think about training as it affects the whole workforce and helps with staff retention. But lack of training is something that will not have a noticeable effect for a while.”

There are also fears that Oxfordshire’s reliance on the public sector — big employers such as councils, schools and hospitals — could make it vulnerable to predicted Government spending cuts.

Mr Doughty said: “Again it will be longer term. Next year’s budgets will be affected and we are looking at a five per cent drop every year for the next five years, which will translate into possible job losses.”

Mr Doughty said he was “cautiously optimistic” about the future and believes Oxfordshire’s diversity of businesses make it well-placed to “show the way” out of recession.

Barry Wheatley, chairman of the Oxfordshire Federation of Small Businesses, said: “We can change the situation ourselves by reassuring people that it is worth spending their money, whether it’s improving their property or buying a new car, and that money will go back into the local economy.

“The more people are positive about the economy, the more chance there will be of coming out of recession sooner rather than later.”

business@oxfordmail.co.uk

PROPERTY

The housing market in Oxfordshire has been hit hard by the recession thanks to the difficulty of obtaining a mortgage.

Prices have dropped by more than 13 per cent in the last year, according to the Land Registry.

However, falling interest rates and Government backing for the banks have meant home loans are becoming more widely available and there are real signs of recovery, particularly in Oxford.

Mark Charter, head of the Oxford office of agents Carter Jonas, said: “The residential market fell off a cliff this time last year.

“The number of properties on the market and the number of viewings collapsed. Then, from January, the situation started to improve and now viewings are at record levels and we are selling a couple of properties a week.”

Mr Charter said sellers were now pricing properties realistically.

Frank Webster, director of Oxfordshire letting specialists Finders Keepers, said his business had benefited from the downturn thanks to more people renting property rather than buying.

He said: “Mortgages may be cheap but lenders are still demanding deposits of 35 per cent which means people still can’t afford to buy.

“Oxford seems to be very buoyant with demand from the universities and hospitals but it is harder in places such as Banbury, where there have been job losses.”

INDUSTRIAL

James Woollard’s solution to tackling the recession is to “work twice as hard.”

Mr Woollard, managing director of Witney-based packaging firm Polythene UK, is hopeful of matching last year’s turnover of £4m, although it will be a challenge.

“Our target customers are small manufacturing businesses which could not be a worse market in a recession, but we identified that a year ago,” he said. “Our existing customers were not ordering as often as they were, so we set up a customer service department allowing the sales people to concentrate on selling. Now we have created 327 new accounts in the last year.”

Mr Woollard, 33, who has been shortlisted in the Young Entrepreneur category of the 2009 Oxfordshire Business Awards, added: “There is enough work out there — it’s a question of getting out and grabbing new business.”

CONSTRUCTION

Building firm Beard, based at Cumnor Hill, has just posted a major boost in its fortunes with pre-tax profits trebling to £1.05m.

Turnover rose 30 per cent to £55.8m for the year to the end of 2008.

Managing director Mark Beard said the effects of the recession had not been felt by the company.

He added: “I think there are going to be tougher times ahead. The challenge will be in 2010-11 because major organisations take a long time to stop investment plans.

“We’re also worried about the level of Government borrowing. There has been a lot of investment in areas such as education and health but in 18 months time it will have to clamp down on that.”

Smaller firm LEC Construction has adapted to the downturn by diversifying away from the commercial property and new home market into providing extensions for residential properties.

Luke Carter, director of the firm based at Lower Radley, said: “We are focusing on the extension market for people who have decided not to move in the current climate but still have money.”

Now he is confident of coming through the recession in good shape. He added: “I am working from 6am-7.30pm — that is what you have to do to earn a buck.”

RESTAURANTS

Oxford restaurateur Clinton Pugh describes the recession as “like being caught with your trousers down and your shoelaces tied together”.

In the course of the last year, Mr Pugh has closed the Lemon Tree restaurant in Woodstock Road and opened a new Café Coco in Park End Street.

He also opened the Oxford Organic Burger Company in Cowley Road, but was forced to relaunch it as Café Tarifa after the original concept failed to take off.

He said: “I didn’t see the recession coming and soon realised calling anything organic was the kiss of death, so I had to set up Café Tarifa.

“One of the biggest problems in the business now is that overheads are going up and there is an over-saturation of the market, so everyone is chasing the same business and putting offers on.

“An interesting change is that a lot of graduates are applying for jobs which should be good for the industry.

“But instead of giving all that money to the banks, the Government would have been better off giving it to every adult or funding people directly to start a business.”

RETAIL

Oxford has been hit by a string of shop closures including Woolworths, The Early Learning Centre and Land of Leather.

The city’s planned Westgate Centre has had several retailers pull out, after plans for its redevelopment were put on ice.

Upmarket card and stationery shop Papeterie has just opened in the centre — the second branch of what director Tony Campbell hopes will be a chain of six by the end of the year.

Mr Campbell said: “We are doing good business, are optimistic the tide will turn and when it does we will be well-placed to benefit.

“The Westgate gave us a very good deal on the rent which helped, but the problem we have is councils’ rate demands which are astronomical.”

Steve Jebbett, owner of The Town Garden in the city’s North Parade, has remodelled his upmarket garden accessories business in response to the recession.

Now he is offering a range of lower priced items as well as plants and seedlings in a bid to tap into the growing demand for people to grow their own vegetables.

Mr Jebbett said: “The recession has made us really look hard at the business model and the movement for going back to basics has helped. Our customers have stuck by us and they are the difference between survival or closure.”

TOURISM

Wendy Proctor, Oxford-based regional general manager of the Four Pillars Hotel group, is upbeat about the prospects for tourism in the county this year.

Ms Proctor, who is also chairman of the Oxford Hoteliers Association, said: “The message is Oxford is not suffering at all. While the conference market is slightly down, the leisure market is doing very well.

“People are holidaying in the UK and the weakness of the pound is attracting more people from Europe and even America.

“These are difficult times but right now I would rather be in Oxford than anywhere else.”