Expanding or exporting overseas is a top priority for more than half (53%) of Midlands mid-sized businesses over the next year, despite complex international trade conditions.
BDO’s Economic Engine survey of 500 mid-sized businesses shows that companies plan to target territories such as Australia (43%), Africa (31%) and Asia (28%). Europe also remains a healthy market, with 53% focusing on the EU in 2025.
Mid-sized businesses, which generated £1.6 trillion in turnover last year, are continuing to push for growth through international trade despite grappling with supply chain pressures. This includes uncertainty around tariffs in receiving countries, delayed deliveries or a shortage of the skills needed to support overseas exports.
According to the BDO survey, more than two-fifths (41%) of Midlands businesses face skills shortages in export operations or supply chain management teams at a time when they hope to grow overseas trade.
Mounting pressures come as demand from end consumers slows for products and services. Nearly half (44%) say lower demand from consumers, which could include from businesses with elevated operating costs or consumers with high living expenses, is one of the challenges they face over the next six months.
Despite these headwinds, Midlands mid-sized businesses are working to tackle the challenges they face and remain optimistic. Ahead of the Government’s plans to publish a Small Business Strategy later this year, the majority (97%) expect the strategy’s focus on growing smaller firms to benefit them.
Of this number, more than a quarter (26%) are calling for measures to reduce red tape, including reforms to streamline customs procedures, which impact the export of products and services overseas, or offer stronger support for exports and trade, including more dedicated UK Export Finance funding.
These businesses may be buoyed by the Government increasing the amount some companies can borrow from the British Business Bank’s Growth Guarantee Scheme or UK Export Finance’s Export Development Guarantee, as they grapple with the prospect of new tariffs in some receiving countries.
Kyla Bellingall, regional managing partner at BDO in the Midlands, said: “Although economic conditions remain challenging, mid-sized businesses in the Midlands are highly ambitious and have their sights firmly set on driving growth, with overseas trade playing a central part in helping to realise those ambitions.
“The forthcoming Small Business Strategy is one of many major opportunities for the Government to provide targeted support for the mid-market – support that will complement regional efforts being driven collectively by the West and East Midlands Combined Authorities that are aimed at reinforcing the Midlands’ role in the UK’s economic landscape.”
