Driving profits key in low growth economy, says PwC

PRIVATE businesses in the Midlands are staying focused on driving profits to beat the low growth economy.

According to accountancy firm PwC, a number of private businesses in the region are managing to turn a healthy profit and hit growth targets despite the economic conditions.

Midlands-based partner Chris Romans said: “Existing in a low growth economy is challenging for all businesses – not least for private businesses that quite often will not have easy access to finance or large cash reserves. However, many are still managing to perform well and achieve growth rates well above current national GDP growth.

“This re-emphasises the importance and resilience of private businesses. Being entrepreneurial in nature, they are demonstrating their agility by exploring new market opportunities and investing in innovation.”

PwC point to companies such as Tamworth-based Instarmac, which manufactures construction and repair materials, and Staffordshire digger maker JCB. Both have been shortlisted in the Private Business Awards, which are sponsored by the firm. 

For private businesses to stay focused on driving profits in a low growth economy, PwC suggests they must manage their costs, improve their working capital management, look for new market opportunities and realise that ideas are good for business.

Romans added: “Private businesses have always demonstrated a resilience and ability to adapt to challenging situations and they will continue to find ways to drive their profits.”