WELCOME to 2001 - but what does it hold for business and industry in the north west?

Has the love affair with the dot-com world permanently turned sour? How will the opening of Manchester Airport's second runway affect the region? Can established retailers bounce back in the face of tough out-of-town competition?

What impact will external factors such as the state of the US economy and UK interest rates have on companies' fortunes?

Chris Barry and Kevin Feddy spoke to some of the region's leading business figures to find out their views and to discover what they believe the year has in store.

Manchester Airport

MANCHESTER Airport's £172m second runway will become operational early next month and will usher in a period of growth for Ringway and the region, said chief executive Geoff Muirhead.

''Aviation prospects are very healthy, with demand increasing by between four and six per cent a year for the forseeable future,'' he said.

''We have seen the expected downturn in our profits resulting from the loss of duty-free, but the traffic performance has been very good.''

Passenger numbers are booming, particularly on domestic routes, as people switch from rail. There have also been increases in winter sun-seekers and skiers.

Ringway chairman Coun Brian Harrison said: ''The growth of Manchester Airport is inextricably linked to the economic prosperity of the region, in terms of the jobs generated both on and off the airport site, and the crucial importance of the airport in attracting international companies to do business in our region.''

Meanwhile, bosses are predicting a tough year for some retailers in the face of increasing competition and consumer demand for cheaper goods.

Jim Martin, chief executive of Manchester-based catalogue shopping giant N Brown, said: ''Last year stretched all retailers, as we addressed the issues of deflation along with a very savvy consumer, who demands value for money in all products and services.

''We have sharpened prices, as well as extending our ranges and catalogues. It has been tough, but we have been fortunate to increase profits and market share.

''Although the underlying issues will remain with us next year, there could be some green shoots, although we will have to work hard to find them.

''The US economy will have a bearing on the situation, but more in the early months of 2002.''

Retail

Keith Darwin, the Co-operative Wholesale Society chairman, is optimistic about the prospects for his business but acknowledges it faces major challenges.

When the CWS merged last April with Co-operative Retail Services it inherited CRS losses of more than £25m.

As a result, the enlarged group's profits slumped in the first six months of last year and it slashed its costs by £30m.

Mr Darwin said: ''Business performance needs to improve in general, not simply in those areas such as farming where we face significant difficulties. The former CRS stores bring, in the short term, difficulties.

''However, in the medium term, this is hugely outweighed by the significantly increased potential for the combined business now under CWS retail management, particularly in the key convenience store and market town locations.''

The CWS has embarked on a major new retail strategy, investing more than £200m in its 525 high street supermarkets and its 537 convenience stores which are being given a revamped, Welcome brand format.

The Internet

Philip Nuttall, head of Manchester-based Lathams Corporate Transactions, is upbeat.

He says: ''We saw a marked increase in the numbers of deals in the last three months of 2000.

''There has been disappointing news from the dotcom sector, particularly with the demise of Powernet and Breathe.com.

''The Internet and other converging technologies are simply different means by which to deliver products and services to consumers and business - albeit quicker and more efficient.

''Look at Tesco - a good, solid bricks and mortar company with an Internet delivery service which is going from strength to strength. I don't subscribe to the view that this is the end of dotcoms and our fascination with the Internet.''

Lathams has worked on a number of management buy-outs recently and three are due for completion soon.

''The underlying trends are excellent and there are a huge number of transactions on the go in the north west,'' says Mr Nuttall.

Corporate finance adviser Ian Currie, of Altium Capital, believes interest rates will fall.

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