The current economic squeeze will continue for the next 12 months with little sign of recovery in 2013, according to a survey of finance directors from the North West's leading businesses.
Two thirds of FDs surveyed by AFR Consulting expect to see no change in the economy in 2013. This marks an improvement when compared with the general view this time last year that the economy would worsen. However, long-term confidence was low - 61% of respondents said it will be three to four years before there was any significant improvement in economic conditions.
The survey, conducted surveyed over 200 FDs in the North West FD Network.
More than half of those surveyed have taken streamlining and cost reduction measures in 2012 with 44% of businesses keeping capital expenditure the same and 44% decreasing headcount.
On a positive note, more than half (55%) increased turnover in 2012 and 40% have invested in staff development and training.
Barclays director John Stanworth said in tough trading conditions businesses need to 'take advantage of the declining number of suppliers, stay close to all stakeholders and exude confidence in their USP'.
The FDs tipped manufacturing and engineering, IT and telecoms as potential growth sectors for 2013.
Phil Scott, director at AFR Consulting said: 'The general consensus from our network of FDs is to keep finances tight, strictly managing cashflow whilst developing staff, products and services where possible.'