Record low unemployment (but...)
The North East’s unemployment hit a record low this year when a rate of 3.5% was announced in July. Since then the rate has crept up again, however, with the region having a rate of 5.2% in the latest figures, the second worst in the UK. In November, the North East LEP revealed that its target to create 100,000 new jobs over a 10-year period has been knocked off course by a series of global political shocks.
Britishvolt/Recharge
The slow collapse of Britishvolt - which it was later revealed had no revenue, no IP and only a fraction of its targeted funding - finally came in January. Australian start-up Recharge Industries was named as preferred bidder for the firm and pledged to revive plans for thousands of green jobs in Northumberland. But that company too has hit numerous problems and has been unable to complete its deal, leaving doubts over what is a crucial site for the region.
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Metnor and Tolent collapse
The collapse of two of the North East’s largest construction companies within days of each other was terrible news for those that lost their jobs and the dozens of supply chains SMEs who lost millions of pounds as a result. Firms such as Great Annual Savings, Pennine Windows and VBites followed them into administration later in the year in what was a terrible year for business failures in the North East. Official figures released in November showed that the UK was seeing the highest numbers of creditors’ voluntary liquidations since records began in 1960.
Arriva sale
The Sunderland-based public transport giant – one of the North East’s largest firms - had been up for sale in one form or another for a number of years, with a deal finally being announced in October. German owners Deutsche Bahn AG is selling Arriva to I Squared Capital, a Miami-based group that invests in global infrastructure and has assets around the world, in a deal worth a reported £1.4bn. The new owner says it wants to “invest to support its future growth as a major European bus and rail operator”.
Transport (A1/Leamside etc)
Improving transport links around the North East is generally one of the big demands of the region’s business community – making 2023 a less than vintage year. In September, the Government announced a third delay on whether it would meet a 2014 commitment to dual a stretch of the A1 in Northumberland. That scheme appeared to be revived and the re-opening of the Leamside rail line was announced a month later when Prime Minister Rishi Sunak cancelled the Northern leg of the HS2 scheme and re-apportioned its Budget... only for the Leamside line promise to fall apart within 24 hours.
WealthTek
Tyneside investment group WealthTek LLP was closed down in April amid allegations of “serious regulatory and operational issues”. The ongoing investigation has found a black hole in client funds of more than £80m while an associated business that ran Newcastle nightclub and adjoining bar The Hustle and The Lofts has also had to close.
Inward investment
The North East’s success in attracting inward investment has continued, with Newcastle city centre seeing a particular run of overseas companies establishing bases here. Companies such as Leonardo, Creative Assembly and Omnicom Media Group have all set up in the city this year.
Nissan
The region’s big success story of the last few decades has endured a rough period during and after the pandemic, but was making headlines for all the right reasons this year. In November the company reaffirmed the importance of its Sunderland plant with a £2bn investment that will see electric versions of its Qashqai and Juke produced in the North East, with a third gigafactory to be built to provide the batteries that will power those vehicles.
Pragmatic
The global shortage of semiconductors has hit companies around the world, and one North East firm’s plans to help fill that gap have attracted more than £180m in funding. Pragmatic Semiconductor announced plans in December to build two more manufacturing lines at its plant in Durham, creating more than 500 skilled jobs in the North East and Cambridge over the next five years.
Greggs x Fenwick
The powerhouse North East brands came together in December to launch Bistro Greggs in Fenwick’s Newcastle store, giving a cordon bleu makeover the food-on-the-go firm’s favourite treats in a pop-up restaurant. The link-up drew attention from around the UK, as well as providing a festive treat for many in the UK.
