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 Kyla Bellingall, regional managing partner at BDO LLP in the Midlands.
2023 has been another year full of challenges for Midlands businesses – conflicting issues that have played a real part in how the regional economy has functioned.
Our bi-monthly Economic Engine survey of 500 mid-market businesses has consistently highlighted which pressures have had the greatest impact on businesses, with supply chain challenges, geopolitical events, and staff and skills shortages coming out on top in our latest report.
When you add into the mix high interest rates and borrowing costs, difficulty in accessing capital, changing customer behaviour, as well as the general cost of doing business, then you can begin to appreciate the significant task facing companies in the region.
While the outlook is beginning to improve, with inflation heading in the right direction, there is still a huge amount of uncertainty on the horizon with the Bank of England warning that the force of interest rates hikes is yet to filter through to all businesses, particularly those that are highly leveraged and those in sectors exposed to economic swings. Unsurprisingly, certain economists are predicting further financial woes in 2024.
As with many regions, there are still many factors at play in creating a favourable trading environment, not least of which is around Government support. An Autumn statement geared towards “removing barriers of investment” to help the economy grow, will go some way in appeasing those businesses fixed on expansion.
However, 2024 will throw up its own challenges, in the form of potential political change and more economic volatility. As such, businesses in the region must clearly define their priorities in the coming months – a focus that will undoubtedly centre on closing skills gaps, investing in efficiency, prioritising supply chain optimisation, while keeping operational costs under control.
