Minister encouraged by positive survey results

The Department of Trade and Industry has released further information from a survey of business leaders from Isle of Man based companies.

The survey, which featured in yesterday's Financial Times, says 70 per cent of firms polled expect to post a profit this year, and nearly two thirds of those predict an increase in profits compared to last year.
Only one in 17 expect to make a loss.

The survey spans manufacturing, professional services, e-Business, Shipping and Aircraft, and shows strong confidence for the year ahead, despite global economic difficulties.

Nearly half of firms say they expect to grow this year, with a further third predicting no change and only 15% fearing they will be forced to reduce in size. The vast majority say they only expect to shrink 'a little'.

Thirty-four per cent expect to take on more staff, 39% think they will retain existing manpower and 22% believe they will be forced to consider reducing employee levels.

The research also shows that, while the current climate is causing firms to focus on simple cost-cutting measures, such as reducing travel (37%) and putting IT upgrades on hold (24%), only 14% say they will make any cutbacks to their research and development spend, moving into new markets or launching new products.

Minister for Trade and Industry David Cretney says, despite the gloomy global economic backdrop, the mood among the Island's business community appears to be positive and determined.

He says he is similarly optimistic given the increasingly diverse economy and the close, supportive relationships that exist between Government and the private sector.

While not wishing to sound complacent, in what he calls "these difficult times", he says the Island is well placed to weather the worst of the current global economic downturn, and see its economy continue to grow.