West Midlands firms investing in team growth and development in new year - Lloyds Bank

New research from Lloyds Bank has found that a quarter (27 per cent) of West Midlands businesses are making New Year’s resolutions to improve their productivity, as businesses signal confidence in more positive macroeconomic conditions ahead.

This optimism about the future comes after 2023 being a tough year for businesses, as they faced into high inflation and a sluggish economy.

The data revealed the top three areas where firms are focusing their attention as they head into the new year, with a third (34 per cent) focusing on staff training, another third exploring new technology (29 per cent), and a similar proportion concentrating on developing their business (28 per cent).

As businesses take stock of 2023, many are reporting they are looking at ways to ensure they have a healthy cashflow, with two fifths (41 per cent) of firms reporting plans to keep a closer eye on costs over the next 12 months.

The data also shows that businesses are setting themselves up for growth, by building teams to support new opportunities, with almost half (48 per cent) expecting to hire more staff in the New Year.

With the expectation of inflation continuing to fall, more than two thirds (67 per cent) of firms are confident that they will see their business become more profitable in 2024 compared to 2023.

Almost three fifth (57 per cent) expect their turnover to increase in 2024. Of those expecting an increase in turnover, a quarter (24 per cent) anticipate growth of 5 per cent-10 per cent and almost one in ten (8 per cent) have eyes on growth of 11 per cent-20 per cent.

Dave Atkinson (pictured), regional director for the West Midlands at Lloyds Bank Commercial Banking, said: “After what has been a challenging year for many, it’s promising to see businesses across the West Midlands anticipating a more successful start to 2024. Through long-term planning, firms are looking to invest in their people and technology capabilities to help grow next year.

“While obstacles will of course remain, with the right support I’m confident the region’s businesses can navigate the year ahead and maximise new growth opportunities. We’ll continue working to provide the guidance and support firms need throughout what I’m hopeful will be a prosperous year for the West Midlands.”