Midlands mid-sized businesses are optimistic about plans to export overseas in the next year, despite recent turmoil in global trade and tough economic challenges. This is according to the latest research from accounting and business advisory firm, BDO.
BDO’s survey of over 500 mid-sized businesses reveals that more than a third (35%) of regional companies are confident about their growth prospects over the next 12 months. Expansion plans also include opening new premises, recruiting new staff and investing in new technologies and R&D.
Midlands businesses see exports as an important part of their growth strategy over the next year – with nearly two in five (39%) citing strong or growing demand as their main motivation. More than half (51%) said favourable trade agreements or government support in receiving markets makes them more attractive.
Asked which regions would be the most appealing, 41% said Eastern Europe and Central Asia as businesses work to forge new trade corridors amid ongoing negotiations between the UK and other territories.
Similarly, more than a third (34%) were most interested in Asia-Pacific.
For nearly one in three (30%), the opportunity to diversify away from dependence on other markets, such as the European Union, was a deciding factor.
As the Government continues to discuss favourable terms on trade with the United States, North America ranked as the most attractive export region for more than a third (35%).
Despite optimism amongst Midlands businesses, major challenges could still stifle growth prospects. Nearly two thirds (60%) consider the combination of overseas trade complications and supply chain pressures, including changing tariffs and delays or shortages in distribution networks, as a top challenge. This follows continued uncertainty around trade tariffs for the US market.
Kyla Bellingall, regional managing partner at BDO in the Midlands, said: “These findings show the resilience of the Midlands mid-market in the face of significant challenges and their potential to be a major international force for UK economic growth.
“Mid-sized businesses in the region generate significant revenues and support hundreds of thousands of private sector jobs. Frictionless trade is crucial to help these companies power the UK economy forward.
“Although the Trade Strategy published last week is welcome, targeted support for mid-sized businesses – whether that’s new hubs to support them to export or trade deals enabling their access to international markets – must build on this and create the right conditions to help them deliver their plans for growth and thrive.”
