Seizing growth opportunities in the West Midlands
Dave Atkinson, regional director for the West Midlands at Lloyds Bank, looks at how local businesses across the region are driving regional growth.
In March, West Midlands Mayor Richard Parker announced plans to establish the Birmingham Knowledge Quarter and Wolverhampton Green Innovation Corridor as employment hubs for advanced manufacturing, green industries, health-tech and digital technologies.
The new site – part of the West Midlands’ flagship Investment Zone – is expected to create more than 23,000 new jobs and it’s hoped that it will spearhead development across the region.
The development is a positive step for the region, with many local firms already looking to capitalise on opportunities in the year ahead.
Building strong foundations
And, encouragingly, we’re already seeing evidence of firms across the region putting plans in place to make their growth ambitions a reality.
Last month, our Business Barometer, a survey of 1,200 businesses that provides early signals about UK economic trends and an in-depth view into how firms across the country are faring, reported that 53 per cent of businesses are planning to grow and invest in their team, with 43 per cent looking to introduce new technology and 40 per cent entering new markets.
Over the past few months, we’ve seen many businesses start to put these plans into action.
Accessing finance
At Lloyds, we have support available to help firms secure the finance needed to act on their ambitions.
Take PDS Direct as an example of a firm we recently supported.
They specialise in the transportation of fragile and high-value goods. Having grown from a local delivery service, covering the Midlands region from its Oldbury premises, into a third-generation family business, the company’s tailored delivery services now span the UK and Western Europe.
After securing a new five-year client contract recently, the firm has recruited 45 new employees, growing its team by 40 per cent, and acquired 30 more vehicles.
It’s also made a substantial investment in infrastructure, including the purchase of a CNG-powered tractor unit to support sustainable operations.
For many firms like PDS Direct, finance doesn’t just facilitate cashflow – it’s a strategic tool that unlocks the ability to grow at pace, improve productivity and make longer-term decisions with confidence.
Cash flow management
For businesses looking to evolve their offering and invest in their operations, a healthy cashflow is essential to ensure finances are fighting fit and ready for growth.
Businesses that manage cash and working capital well tend to be more profitable in the long run, are better able to cope with economic cycles and have greater resilience against short-term shocks.
To safeguard cashflow, local businesses should map out potential risks, put in place robust contingency plans, and consider finance solutions that support effective cash management.
Invoice finance and asset-based lending can be valuable finance solutions to help firms manage growing demand and free up capital to target new opportunities.
This type of funding can help businesses respond to increased demand, invest in growth opportunities, and maintain a healthier cashflow without taking on traditional debt.
Green growth
The region is also becoming increasingly focused on sustainable growth.
Tools and advice are becoming more accessible, helping businesses identify sustainability opportunities and work towards carbon reduction in practical, measurable ways.
One example is manufacturer Hornsey Steel, which makes metal roofing panels and structured steel products for a range of high-profile customer projects, including a Netflix film and television set.
Sustainability is a core part of its growth strategy, and the business has recently invested in a new purpose-built manufacturing site to further improve its operations and sustainability, using a £1.5 million Clean Growth Financing Initiative development loan from Lloyds – a product that’s specifically tailored to support firms with sustainable growth projects.
Supporting SMEs
We understand that it remains a challenging time for West Midlands businesses, as they navigate issues such as rising operating costs and supply chain disruptions, but we also know that the region’s firms are resilient and will continue to strive for growth.
The level of innovation that is so synonymous with firms in the heartland sets the scene for the months ahead.
Between increasing investment through the West Midlands Investment Zone to the resilience we’re seeing on the ground, I have confidence that the region will continue to succeed and prosper.