It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.
It has become something of a tradition, given that we’ve been doing this now for over 30 years.
Here we speak to Andrew Mair, partner and head of BDO LLP in the East Midlands.
There’s little doubt that trading conditions for East Midlands businesses are extremely challenging and come after a sustained period of pressure which is set to continue into 2023.
However, the region is a resilient marketplace and, despite considerable economic headwinds, East Midlands businesses have performed ahead of expectations. According to our latest Rethinking the Economy survey of 500 mid-market businesses, 73% of regional companies are ahead of where they expected to be. And an overwhelming 83% of businesses are significantly more optimistic about their business prospects going into 2023, compared to this time last year.
While it’s reassuring to see business confidence at a high level, it should be tempered with some caution in light of the recessionary pressures. Issues, such as the rising price of materials and products, together with rising energy prices continue to drive inflation and remain a real cause for concern for regional businesses. These issues, together with supply chain challenges and the availability and cost of recruiting and retaining the right people, are adding to the general cost of doing business and placing immeasurable pressure on companies. The combination of all of these factors are forcing many to think creatively about how they can drive growth in 2023 against a challenging economic backdrop.
According to our Rethinking the Economy survey, more than a third of East Midlands businesses will be investing in ESG in 2023 in a bid to attract more customers, responding to the increasing interest from employees and reinvesting savings from reducing the business’s carbon footprint. In addition, 30% intend to increase investment in online and digital, while nearly a quarter plan to invest in hiring new talent.
There is a considerable amount of uncertainty heading into 2023, but one thing is certain – a large portion of East Midlands businesses are well positioned and primed to ride out the economic pressures.
