Patrick Gallagher
Mark Lane

SMEs in Yorkshire turn to competitors for help

Over half (58%) of SMEs in Yorkshire and Humberside have been forced to overhaul their working styles in reaction to poor economic conditions to create leaner, more flexible operating models, according to a new report from CitySprint – the UK’s largest same day distribution firm.

The report - ‘Collaborate UK’ – finds that over a quarter (28%) of SMEs are even willing to work with their competitors to achieve their goals, making them the most willing to engage in ‘co-opetition’ in the UK, where nationally only 12% would.

The report also identifies the emergence of a new breed of “size zero” businesses in Yorkshire and Humberside – organisations that are embracing smart outsourcing, sharing expertise and exchanging services to maximise their effectiveness. It finds:

* Smart outsourcing – 61% of SMEs have embraced outsourcing to reduce costs and among this group, the projected spend on outsourcing in 2013 is an average (mean) £155,369 each

* Sharing expertise - 31% of SMEs are working with other businesses to get sales leads and win new businesses while 14% are sharing operating costs

Patrick Gallagher, CEO of CitySprint, commented: “Our report shows that far from feeling isolated during the economic downturn, there are real opportunities for new intra-SME contracts across the UK and this is breeding, in parts, new optimism that is the envy of larger firms.

“Through the work we do in Yorkshire and Humberside, it has been really fascinating to see businesses seize this opportunity and, in many cases, play a part in it.”

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