Regional firms are confident that 2023 will bring them more success despite economic headwinds, new research suggests.
Data from a survey of decision makers carried out by Lloyds Bank shows 80% of North East businesses are confident of greater success in the next 12 months compared to the past year. Of the 100 regional businesses questioned earlier this month, just 13% said they were not confident about 2023 bringing success and 2% expected trading to remain unchanged.
A majority of 63% expect next year to bring higher turnover than 2022 and almost a quarter expect turnover to increase by between 5-19%. Meanwhile a fifth of firms expect turnover to increase by more than 20%.
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To encourage the growth, 93% of firms said they planned to invest. Respondents said they planned to invest in their workforce (37%), growing their business (37%) and in energy efficiency measures (30%).
Key focusses for the New Year included upskilling existing staff (37%), growing revenue from existing clients (36%), cost control (34%) and 11% said they would pay bonuses and short term incentives. The data came from additional surveying carried out for the Lloyds Business Barometer, which looks at businesses with £250,000 of turnover or more, and recently found the North East was among the most confident of the regions, second only to the North West.
The upbeat findings come despite the challenges of inflation, supply chain issues and risk of economic downturn. Steve Harris, regional director for the North East at Lloyds Bank, said "It’s encouraging to see such strong optimism for the year ahead among firms here in the North East, and that a large proportion are expecting a higher turnover in 2023.
"This year, of course, hasn’t come without its challenges, but it’s testament to firms’ resilience that they have such a positive outlook for the new year. To make the most of any opportunities that come their way, it’s vital that businesses keep a close watch on working capital to stay agile and ready to drive growth."
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