West Midlands firms confident of higher turnover in 2023, survey says
The majority of West Midlands businesses expect the new year to be more successful than 2022, despite challenging economic forecasts, according to the latest data from Lloyds Bank.
Almost two thirds of West Midlands businesses said they are confident they would have greater success in the coming 12 months, compared to the past year.
More than a quarter were not confident about being more successful in 2023, and six per cent expected their business to perform at the same level in the next year.
The research, including more than 100 West Midlands firms, was carried out between December 1 and December 14 as part of additional polling for the monthly Lloyds Bank Business Barometer.
Firms in the West Midlands projected a more upbeat outlook for 2023, with over half expecting a higher turnover than in 2022.
One in five businesses expect turnover to increase by between five per cent and 19 per cent, and a fifth anticipate turnover to increase by more than 20 per cent.
When businesses were asked what they would do to fuel growth, 92 per cent said they were planning an investment drive. Businesses reported that funding would be used to develop their company, increase wages, and improve energy efficiency.
Alongside investment, West Midlands businesses plan on making several New Year’s resolutions. These include keeping a closer eye on costs (37%), followed by winning new business in existing markets (32%).
More than a quarter (27%) said they are planning to retain existing staff, with 18% set to invest in paying bonuses and short-term incentives. A quarter (25%) are intending to target growth from their existing customer base.
Dave Atkinson, regional director for the West Midlands at Lloyds Bank, said: “Businesses in the West Midlands are entering the new year with a cautious optimism that reflects the reliance of companies in the region.
"Despite persisting economic challenges, firms are choosing to focus on opportunities for growth. By investing in their workforce and energy efficiency, businesses are tackling the dual challenges of staff shortages and energy costs head on, focusing on strategies for growth rather than just survival.
"By making the most of the funding support available to them, firms can equip themselves with the tools they need to ensure they achieve new year ambitions.”
