Optimism revealed in SW Technology Survey

The first survey of technology companies by Tech South West has revealed high levels of optimism for growth across the region.

Carried out by Tech South West, the survey found that 80% of technology firms in the region believe 2017 will be a better year, with greater growth, than 2016, with no business expecting this year to be worse than last. Tech South West, which has more than 500 members across the region, acts as a showcase and champion of what is the fastest-growing sector in the South West.

The survey, which featured organisations based in Bath, Bristol, Cornwall, Devon, Dorset, Gloucestershire and Somerset, also found that 72% of those who responded expect their recruitment of new employees in 2017 to outstrip the previous year, with just 6% anticipating a potential reduction in their workforce.

But despite the optimism, there are longer-term concerns about Brexit, with 35% admitting that the vote to leave the European Union and subsequent economic and political uncertainty has already had a negative impact on their business, although 6% say they have benefited from the decision, whilst 59% have seen no difference to their business.

Members were also asked to choose their top tech trends for 2017. Joint top were the Internet of Things and Virtual and Virtual and Augmented Reality, followed by Cloud Services, then Cyber Security and Artificial Intelligence.

South West Tech Trends 2017

1st = Virtual Reality / Augmented Reality

1st = Internet of Things

3rd Cloud Services

5th = Cyber Security

5th = Artificial Intelligence

6th Big Data

7th Social Media

8th 5G

9th Video - interactive, live streaming

10th Health tech

12th = Agile working through tech

12th = Robotics

Philip Letts, Tech South West Chairman and CEO of blur Group, said: “It’s clear that there is genuine and sustainable growth across the tech sector in the South West combined with high levels of optimism that look set to continue. The findings certainly echo what our members have been saying to me at recent events.

“Like all businesses, there are of course concerns about Brexit and what it will mean specifically for the technology sector. Many of our members are trading internationally, and rely on brilliant talent wherever that may be. The Government’s recent publication of its Industrial Strategy was encouraging, putting a strong emphasis on technology and the regions. But there is a long way to go before we can judge the success of that. Tech South West will continue to push for a fair Brexit that ensures our region’s technology companies, vital to the overall economy of the region, can thrive.”

The survey, which was carried out over December 2016 and January 2017, found:

• Business prospects better, the same or worse in 2017 compared with 2016? 80% better; 20% same; 0% worse
• More, the same or less concerned about availability of funding in 2017 compared with 2016? 13% more; 67% same; 20% less concerned
• Likely to recruit more, the same or fewer people in 2017 than 2016? 72% more; 22% same; 6% fewer
• Brexit impact on your business so far? 6% good; 59% no difference, 35% bad.

Technology is the region’s fastest growing sector, worth £2.8bn in 2015 and expected to be worth £4.2bn in 2020. There are already more than 10,900 technology companies in the South West employing over 126,000 people.

For more information www.techsouthwest.org.uk