Midlands firms ready to invest - but urge Government to do the same

Two thirds of mid-sized firms in the Midlands believe now is the right time to invest in their business - despite the current lockdown and ongoing economic challenges facing the region.

The latest BDO Rethinking the Economy survey of 500 mid-sized businesses, found the top three Midlands investment priorities in 2021 are investing in technology and new processes to increase business efficiency, developing initiatives to support employee wellbeing and hiring graduates and apprentices.

However, Midlands businesses have called on the Government to do the same, in order to make significant progress in 'levelling up ' the UK regions over the next three years.

When asked about the top three investment priorities for the region, company leaders are calling on the Government to invest in 5G and internet connectivity (50 per cent), develop more commercial space for business (40 per cent) and mandate more devolution to local government (40 per cent).

The Rethinking the Economy survey also revealed that 39 per cent of Midlands businesses expect to recover from the pandemic within seven to 12 months once the toughest restrictions are lifted.

Right now they are still focused on managing the impacts of Covid-19 restrictions, restructuring their workforce, including making redundancies and managing an overall reduction in demand for their products or services.

Tim Foster (pictured), partner at BDO, said: “It 's very clear that managing the impact of ongoing COVID-19 restrictions is still a number one priority for businesses, but companies are looking ahead and considering ways they can re-think their approach and create long-term value.

“It 's encouraging to see a real appetite for investment amongst the region 's mid-sized businesses, as a means of improving operational efficiencies and clearly placing investing in people and their well-being at the centre of their future strategy. ”

In the Midlands, 43 per cent of companies feel greater funding support is required through repayable loans, 36 per cent want to see a relaxation of restrictions as soon as possible and 36 per cent feel greater funding support through non-repayable grants is the key to their recovery.