There are signs of emerging economic recovery and renewed optimism in the north, according to the area’s development agency.
More than half of companies questioned in the latest Highlands and Islands Enterprise (HIE) Business Panel survey said they are now operating at pre-pandemic levels or beyond.
And 67% expressed confidence in the region’s economic outlook for the next 12 months, compared to just 37% in October.
More than 1,000 businesses took part in the research, carried out by Ipsos Mori for HIE in June, answering questions on topics including performance, confidence, skills and viability.
Two-thirds reported relatively stable employment levels in recent months and most had the number of employees they needed.
Almost half (44%) of respondents perceived the UK’s exit from the European Union (EU) as having a negative impact on their business, while 11% saw it as positive.
The majority said they were able to access the goods and services they required, but 84% reported issues in doing so.
High or increased costs were cited by 70% of businesses, 65% had experienced delays and 35% said getting the required volume was problematic.
Businesses were most optimistic about selling within the UK and least optimistic about sales to the EU, with 40% of exporting firms experiencing issues in doing so.
Results show ‘high levels of innovation’
Carroll Buxton, HIE’s interim chief executive, said: “We already know that the Highlands and Islands region has been disproportionately affected by both the pandemic and the UK’s exit from the EU.
“The early signs of recovery coming across in this survey reflect the high levels of innovation, flexibility and entrepreneurship that many of them have shown during the most trying of times.
“Their resilience has been tested to the extreme and having weathered that storm will have helped boost confidence in many instances.”
Ms Buxton continued: “This survey also shows what areas of operation businesses are finding most challenging, for example the issues around imports and exports, skills and accommodation.
“These are areas that we as the development agency will need to look at with our partners to make sure our resources and support programmes are targeted to best effect.”
The latest Business Panel survey is the 19th to be carried out by HIE since the research started in 2014.
