Midlands businesses face challenge with shift in consumer spending
BDO, an accountancy and business advisory firm, has found consumers’ decision to cut back on spending is their biggest concern.
In its economic engine survey, which involves 500 mid-market businesses, this was the largest worry for 59% of companies.
Supply chain disruptions also remain a major source of concern for 31% of businesses in the Midlands. This is due to ongoing challenges such as delayed deliveries, inadequate stock levels, and rising costs that continue to affect the market.
As the struggle to secure skilled talent persists, close to half of the businesses in the Midlands (46%) are urging the Government to enhance its support in addressing particular skill shortages.
Regional managing partner in the Midlands, Kyla Bellingall said: “Customer spending habits have always dictated how many regional businesses approach day-to-day operations and long-term growth. As the battle with inflation continues to impact all facets of the regional economy, Midlands companies must be laser-focused on business priorities for the remainder of 2023, with debt financing and restructuring workforces at the top of the list for businesses.
“What is reassuring to see is, despite the continued pressures facing businesses, growth ambitions remain firmly on the agenda, with 28% of Midlands companies looking to recruit more people with the right skills, as a way of meeting strategic aims.”
According to the report, Midlands businesses maintain the view that the government has a crucial role in aiding the regional economy during the ongoing challenges.
