10 Hot 100 2009
HOT1002009HOT
WALES
H
aving helped in the compilation of
this and last year's Hot 100
companies, I thought it would be
interesting to reflect on the
changes in the sectors represented in the
list. The last year has seen some staggering
changes in fortunes for Welsh businesses.
The so called credit crunch took hold and
shook Wales hard, and its effects can still
be seen today.
It is very difficult to know whether the
worst of the recession has passed, some
bits of promising news are often peppered
with bad. Unemployment is still a major
problem for Wales; Table 1 shows the
continuing increase over the course of the
last year. On initial observation the figures
paint a worrying trend however it must be
acknowledged that there has been no
dramatic increase since November 2008.
What does this mean for Wales? In
economics there are two ways of looking at
the situation, the glass could be considered
half empty, less money in the economy to
spend reducing growth and further
exacerbating the recession. On the other
hand the glass could be half full � more
human capital has become available with
more people available for work, and older
less agile firms have exited the market
making way for more dynamic ones. This
oxymoron is what puzzles policy makers
and academics alike.
This "creative destruction" is a continual
process which has been around as long as
market systems have existed. Turning our
attention to this year's companies it is
interesting to explore the sectors that have
made the list this year, a year in which
trading has had to be done in some of the
most difficult conditions for decades. Table
2 displays the number of firms in selected
sectors making the list this year.
The first thing to note is the notable
exception this year of recruitment firms. Last
year's list had four recruitment firms
typifying the nature of a high growth sector
in Wales. This year there is no place for any
firms in this sector. Probably one of the
most surprising sectors that dominate the
list this year is construction. Over the last
year this sector has been hit badly not just
in Wales but across the UK and Europe
beyond. Hundreds of workers have lost their
jobs, but yet looking at these figures there
may be cause for optimism for the sector.
The other thing to notice from the graph is
the continuing growth of management
consultancy in Wales. Last year I highlighted
this as a sector thriving in the nation and
these figures continue to support this
assertion. The retail sector over the last 10
years has been a key component of the
economy playing an integral role in the
growth of the nation.
If we reflect on all the sectors in the list
there are no great surprises. This is maybe
as a result of the poor trading conditions but
whatever the case it is important for
policymakers to take heed of the sectors
listed. These are the sectors which are
striving forward at a time of great hardship.
These firms prove that although difficult it is
possible to succeed in these turbulent
times.
CREATIVE
DESTRUCTION
Dr Andrew Crawley
Postdoctoral Research Fellow,
University of Glamorgan
8
7.5
7
6.5
6
5.5
5
4.5
4
%Unemployed
Retail sales
Management consultancy
Construction
Unemployment rate in Wales 2008-2009
Table 1 Table 2
Hot sectors in Wales 2009
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