See the big picture
While businesses in the Midlands are likely to face a variety of challenges this year, those that adopt a forward-looking, dynamic approach may be able to make the most of the opportunities available in the region.
Head of Mid Corporate, Midlands, Barclays Corporate Banking
I’m hearing from several clients that various challenges – such as difficulties in attracting qualified and technical staff, rising costs and salary inflation – are affecting employment growth, and there’s little to indicate that this will improve in the short term. On top of the general uncertainty felt across the region, businesses are also concerned about how salary expectations will influence the recruitment market.
On a more positive note, the post-pandemic shift toward hybrid working and better work-life balance is still underway, and businesses say they’re seeing a lot of people ‘returning home’ to the region from the bigger cities or moving to more ‘desirable’ areas. This should help reduce the impact of the ‘brain drain’ across the Midlands. Implementing hybrid working models and clear developmental career pathways for professional and personal growth could be key to attracting and retaining this talent base.
Reassessing strategic objectives
Recent conversations with clients across our Midlands region have underlined how the political and economic uncertainty of the past few years has resulted in greater business caution, with some choosing to pause capital projects until they have more clarity about what the future may hold.
Confirmation that HS2 will extend to Euston is likely to be welcomed by many businesses, particularly those in the West Midlands, as it could support greater regional-capital connectivity. However, the indefinite pause on extending the HS2 past Birmingham may require some businesses to reassess their priorities this year.
This reconsideration of strategic priorities is also driving consolidation in some sectors, and we expect to see more merger and acquisition opportunities across the region over the coming months. Sectors most open to consolidation appear to be manufacturing, transport and logistics, business and professional services, and education.
Businesses are having to negotiate external forces that are largely beyond their control. As such, we expect they will use the early part of 2025 to catch their breath, while they reassess their strategic priorities and consider the best way forward.
Head of Mid Corporate, Midlands, Barclays Corporate Banking
Pivoting for future success
Aside from being centrally located, the Midlands has a rich industrial and cultural heritage, fantastic connectivity, and areas of natural beauty. From well-established theme parks and heritage trails to high-end Michelin star restaurants, shopping, and unique accommodation, I believe there are many reasons why people are choosing to visit the region. As a result, we’re seeing a trend in businesses and real estate pivoting towards the hospitality and leisure sector to meet the diverse needs of visitors, and I expect this to continue over the coming years.
As such, opportunities may exist for creative businesses to capitalise on the increasing H&L demand, which is helping to bring money into the local economy and is driving regeneration, development and change.
Businesses with growth ambitions need to be confident that the necessary advice and funding is available for them to succeed – and we’re committed to providing that.
To drive productivity and growth, businesses should be doing everything they can to attract and retain the best talent – for example by providing the right training and development opportunities.
The Midlands offers promising prospects for innovative businesses willing to adapt and take advantage of the diverse opportunities available across the region.
If you’re looking to unlock growth opportunities to move your business forward, our £22bn Business Prosperity Fund is available through some of our borrowing and refinancing options. See how we could work together to achieve your ambitions and strengthen the UK economy. Subject to normal lending assessment, status and application. Terms and conditions apply.
Keeping fraud front of mind
Fraudsters are as active as ever, impersonating our colleagues and attempting to defraud our clients. To help protect you and your business we have a wealth of resources available. You can view our quarterly fraud webinars and take a look at our other educational resources on our Fraud Protection Hub.
To discuss your business requirements and how Barclays can support you, contact us today.
