Opportunities

Food and consumer goods

At the beginning of the year we were told that inflation was running ahead of the predicted figure of 3.3% by 1.3%, this was before the VAT rate went back up to 20% and the price of fuel continued to soar.
At the time, the cost of weekly shopping was growing and has continued to grow. Most people will notice a considerable difference in the price of their weekly food shop and it’s now so noticeable, like the changeable weather it’s becoming a talking point.
Given that the forecast for this is to continue there must be many gaps in the market for manufacturers who can make good quality products at a lower cost than those currently being bought in the UK. Retailers are under real profit pressure just to stay level; with the cost of fuel still at a high and the promised cost increase of utility bills some increasing by as much as 19%.
The opportunities present themselves in most food areas as farmers are also expecting price pressure on wheat, oats, chickens and other crops.
There are many opportunities in any industry where we see price pressure these include:
·         Food for consumption
·         Ingredients
·         Non alcoholic Beverages
·         Clothing:
·         Men’s clothes – mainly outerwear
·         Children clothing – usually the value end of the market.
 
IT Outsourcing
We are seeing an increasing demand from UK companies looking for quality IT support and outsourcing.  There is a definite move back from India, and the Baltic are well positioned to take advantage of this.  There are particular opportunities for companies with experience of developing mobile applications for mobile devices.
 
Renewable Energy
The UK government and Scottish government have made significant commitments over the development of renewable energy in the UK.  There are major plans for the development of wind energy in particular, and the UK supply chain is not in place for this.  We see significant opportunities for companies which have the ability to get involved in the manufacture of parts for wind turbines.
 
Construction
Despite the economic situation there is a noticeable pick up in the construction sector, and we believe there are good opportunities for specialist contractors and subcontractors.  The areas we see opportunity include plumbing, mechanical engineering and other specialist trades.