Businesses across the Midlands are showing resilience and optimism, with the vast majority reporting strong performance and a positive outlook for the future, according to new insights from Barclays UK Corporate Bank.
More than four in five (83%) businesses in the Midlands have seen revenue growth compared to the same quarter last year, underlining the region’s economic momentum. Confidence is equally robust, with 81% of firms expressing optimism about their prospects over the next five years – more than five times the number who feel uncertain (15%).
Trade remains a key driver of this confidence. Two in five (43%) Midlands businesses believe the current ease of importing and exporting will positively influence their long-term growth. Notably, businesses in the West Midlands are significantly more likely to see this as “extremely positive” (15%) compared to just 5% in the East Midlands and 9% across the wider UK.
However, global trade tensions are not without impact. A substantial 77% of Midlands firms express concern over US tariffs and broader trade uncertainty – with this unease more common in West Midlands businesses (81%) than those in the East Midlands (72%). Nearly half of companies across the region (47%) are already planning changes to their operations or supply chains in the US in response to the tariffs.
Despite these challenges, many businesses are finding opportunity in adversity. A notable proportion expect US tariffs to positively affect their profits (36%), supply chain stability (34%) and competitive positioning (29%) – with West Midlands businesses more positive on this issue across every metric examined, than those in the East Midlands. In fact, more than a quarter of Midlands companies (28%) see the tariffs as likely to improve their overall business prospects.
Beyond tariffs, the top issues currently facing Midlands businesses include economic uncertainty (39%), rising operational costs (38%), market competition (32%), and cybersecurity threats (31%). East Midlands businesses are particularly impacted by operational costs (46%), compared to their peers in the West Midlands (31%).
Barclays revealed this data and insight as part of their inaugural ‘Building Confidence in the Midlands’ event, held at the bank’s regional headquarters in Snow Hill. This event offered clients in the area an opportunity to discuss trade, business prosperity and opportunities for Midlands-based businesses to grow – as well as to hear insights from both the Rt Hon Liam Byrne MP and senior leaders at the bank.
Rt Hon Liam Byrne MP, Chair Business and Trade Committee, said: “As a former entrepreneur, I know that growing a business is never easy – especially when global trade headwinds are blowing strong. So, these figures are a remarkable testament to the resilience, ingenuity and ambition of Midlands firms.
“But we can’t take this success for granted. As Chair of Parliament’s Business and Trade Committee, I’m leading an inquiry into how we can better back our small businesses – especially in the face of growing global risks. If we get this right, we won’t just unlock growth. We’ll unleash a new era of Midlands-made prosperity.”
David Farrow, Head of Barclays UK Corporate and Payments Coverage, said: “These findings paint a picture of a region that is not only weathering global challenges but actively adapting and thriving.
“The Midlands continues to be a powerhouse of UK enterprise, driven by innovation, trade, and a confident outlook for the future. We look forward to working with all of our clients across the region to support them as they navigate and succeed in this dynamic landscape.”
