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Excitement for future of tech in Bristol, despite challenges
Economic conditions and lack of homegrown talent are the greatest barriers to growth in the tech industry, according to business insiders.
While company bosses across the Bristol region are predicting a strong 2019 for what continues to be a flourishing sector, Tech South West’s annual survey revealed a dip in confidence compared to last year, amid Brexit uncertainty.
The report also puts artificial intelligence as the top tech trend for the second year running, with automation and augmented & virtual reality coming in second and third.
Of the tech firms surveyed, 76 per cent said they are positive about their prospects in 2019 – down from 85 per cent in 2018 – and only half believed it would be a better year financially for their business.
Economic conditions were cited as the biggest barrier to growth by 45 per cent of companies, followed by the availability of talent (32 per cent).
Nick Sturge says he is excited for the future of tech in Bristol, despite challenges
Commenting on the findings, Nick Sturge, of Engine Shed and Tech South West steering group member, said: “The survey shows that economic conditions and talent are the greatest barriers to growth.
“Small, growing businesses, which make up the bulk of Tech South West members, are agile, but they are also vulnerable to uncertain market and investment decisions, and being able to recruit the right people at the right time and with the right soft and hard skills.
“Despite these challenges, I am excited by the future and firmly believe that the clusters around the South West are stronger by being connected and collectively informing educators, investors and policymakers to ensure we do all we can to support a stronger future.”
Overall, growth is steady across the sector, with 86 per cent of companies stating they are looking to recruit at least the same amount, or more, employees as last year.
Toby Parkins, chair of Tech South West and founder of Cornwall-based software firm HeadForwards, said: “Technology in the South West is a buoyant sector and companies are generally positive, but no sector is immune to the uncertainties of Brexit.
“One positive we have is the huge variety of small companies with technical specialisms; be that robotics or software development, operating across numerous areas from biotech and agri-tech to health tech and fin tech, with customers in the UK, Europe and around the world. That variety will continue to ensure the region’s tech sector continues to thrive.”
On the tech trends for 2019, Kate Doodson, joint CEO of Cosmic and member of the Tech South West steering group, said: “It’s fascinating to see how artificial intelligence is generally accepted as the key tech trend once again. It’s fast becoming a reality for most businesses, particularly in areas like cyber-security and sales and marketing.
“However, what’s really interesting is the return of data and the growing recognition of just how much potential value there is in mining business data, an area that most organisations have still barely scratched the surface.”
Tech South West Tech Trends 2019 (with 2018 position in brackets):
1. Artificial intelligence (1)
2. Automation (4)
3. Augmented and virtual reality (3)
4. Data collection (new)
5. Robotics (8)
6. Internet of Things (2)
7. Health tech (10)
8. Blockchain (9)
9. Drones (new)
10. Cybersecurity (5)
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