Bosses defy credit crisis; INVESTMENT: Downturn an opportunity for some.

Byline: By Will Oliphant

COMPANIES in the Midlands are continuing to invest despite the credit crunch, according to research.

The Birmingham branch of PricewaterhouseCoopers has found that many firms are looking on the downturn as an opportunity to invest, instead of focusing on cost reduction and management.

Paul Norbury, assurance director, said: "Companies in the Midlands are aware that leaner and stronger businesses will come out of the downturn in better shape than their counterparts.

"While cost management measures are important to improve liquidity, a surprising number of businesses are also planning to make investments that are designed to deliver efficiencies or strengthen their market share.

"Planning to make such investments in the current economic climate requires forethought, particularly as lenders will need convincing that investment strategies are wellconsidered."

Mr Norbury said that while firms were clearing unwanted stock to cut costs, they were also investing in plant which would make them more efficient, allowing them to turn efficiency to their advantage when the economy picks up.

"When it comes to planning investments, Midlands companies are demonstrating that they are ready and willing to take advantage of the opportunities that strategic business reviews often throw up.

"The types of investments that local companies are considering range from the purchase of new plant or equipment that will improve productivity and efficiency, to the acquisition of bargain basement businesses that offer an opportunity to strengthen market share.

"Some companies are also exploring ways to strengthen their workforce by increasing rather than decreasing their in-take of skilled workers."

Mr Norbury added: "Midlands companies are showing real drive and courage in pressing ahead with investments in people, plant and strategy."