Making predictions for the upcoming year is tough at the best of times - just look at last year's article for example.
But nevertheless, a selection of top business leaders from across the North West have attempted to predict what will happen in 2023.
Below, BusinessLive has rounded up their comments. Be sure to come back next year to see how correct they were.
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Tony Hughes, CEO of 4th Utility
"It’s safe to say that 2022 was not as many of us expected it to be. For businesses in this region, our hopes were to continue recovery from the pandemic, stimulate growth and start to see the promises of 'levelling up' come to fruition. Instead, we saw the negative effects of Brexit worsened by the war in Ukraine, and a cost-of-living crisis that crippled the finances of many businesses and households up and down the country.
"Let’s be in no doubt – the North has been disproportionately impacted by much of this, and will continue to be as we enter what looks a likely recession. So, over the coming 12 months, we must see the promises of the Government’s 2019 manifesto finally followed through – with proper investment and increased devolution.
"It’s something myself and others have consistently called for since the election three years ago. A good start would be reinstating the post of Northern Powerhouse Minister, made redundant in 2020.
"In our sector specifically, momentum in digitally connecting the UK must not slow down. At present, around 40% of UK homes can now access full-fibre broadband – the fastest, most reliable of its kind.
"In 2023, we’d expect that number to rise significantly. And with our own plans to connect many, many more properties and developments over the coming 12 months, we’re hoping to play a big part in that."
Randel Bryan, executive director at Factory International
"2022 has been a remarkable year for arts and culture in the North, with real momentum building around enhancing the region’s standing as a key cultural destination.
"The North has been described as seeing a cultural resurgence; however, we see it as building on Manchester’s ripe cultural heritage and history as a place of innovation.
"That said, 2023 presents a real opportunity to go further when it comes to widening engagement with the sector, connecting local people and talent with opportunities, and pushing the boundaries of art in all its forms.
"But now is not the time to rest on our laurels and enjoy the view, moreover it’s time to really ride this wave of enthusiasm and ensure that all communities of Manchester, especially those who have been socially or economically excluded from the arts, feel invited, connected and empowered to join in.
"That requires genuine two-way dialogue with communities and working with local people to shape arts and cultural programmes that relate to them in authentic and meaningful ways.
"A major catalyst for this movement will be Factory International, a cultural venue opening in 2023 that will not only be a global destination for arts and music in the heart of the city, it will also be a destination to develop the next generation of diverse talent, via the Factory Academy, a major training centre for local people that provides routes into technical and production roles for people from all backgrounds.
"In 2023 we will have the opportunity to take Factory Academy to the next level with unparalleled opportunities to provide hands-on training, in a world-class environment."
Joanne Waller, managing director of Sourced Development Group
"In 2022 the construction industry witnessed prices for materials soar as a result of the war in Ukraine, which inevitably takes its toll on margins. We have sadly seen some construction businesses go bust as they have been unable to manage rising costs.
"However it has forced businesses to double down on relationships with the supply chain, becoming more agile and savvy.
"Our contractors have remained robust, with a steady stream of projects in the pipeline providing much-needed certainty in what is a volatile market. I’m hopeful an upturn in the economy abroad will help settle inflation at home.
"I believe 2023 will see steady demand for high-quality, well-designed homes. As we reach pivotal stages in our residential schemes in Liverpool and Manchester and we get to work on ambitious new schemes in both of the North West’s major cities, the New Year provides another exciting opportunity for Sourced Development Group and indeed the development sector."
Sean Keyes, managing director at Sutcliffe
"2022 started off strong for many and there was plenty of positivity in the air, the economy recovered well post Covid and despite the complications of Brexit and a post pandemic world, spirits were high.
"Unfortunately things out of our control in the UK, including the war in Ukraine brought complications and the changing political landscape also brought uncertainty, but as we always do, we kept pushing forward!
"Contrary to what the press is reporting, the economy will improve from Spring 2023 onwards and the construction sector will help to lead this, especially in the North of the country, with the Liverpool City Region and various other northern hotbeds continuing to attract high levels of output through construction.
"I also predict that high energy prices and inflation will start to drop as we go through the new year and we can look back in 12 months time on a year that we thought would be tough, but improved and brought out the best in a lot of people and businesses.
"In the Liverpool City Region, we are all looking after each other, there is a lot of generosity and charity giving, especially throughout the festive period and at Sutcliffe we are playing a big part in this and giving back to the local community that has supported us since 1985.
"On the theme of charity, my highlight of 2023 will be the Sutcliffe Ball in April, which aims to raise £50,000 for the Liverpool University Hospitals Charity - this will be the highlight for the Liverpool City Region construction sector and something that we are already counting down the days until!"
Zeri Cheetham-Karcz, brand manager at iGD Sport
"In the sportswear and lifestyle market, we know the cost of living crisis will continue to have an impact, but there remains a demand and focus on consumers prioritising their physical and mental health.
"iGD Sport understand the massive benefits working out and attending the gym can have on both your physical and mental wellbeing, therefore we believe there remains the potential for a big year for the sportswear sector.
"For iGD, there will be no slowing down in 2023. We are launching our new Fit and Fierce collection in January, which has already had sensational feedback, and features our state-of-the-art compression technology.
"We want to continue producing technically superior sportswear at affordable prices to help our customers train harder and recover faster, all while looking great."
Peter Jackson, chief executive at Hill Dickinson
"As we head into 2023, it feels a little reminiscent of those early days of the pandemic. We don’t yet know the true scale of the economic challenges the UK is facing, and the impact it will have on all sectors, including professional services.
"However, that’s not to say it’s all ‘doom and gloom’. Many organisations emerged from the pandemic in a stronger position than before, after all.
"If business leaders view these economic difficulties as another chance to grow or even diversify their services or offering, it could make their organisation even more resilient next year.
"We’ve seen a heated labour market pushing businesses to increase wages to retain and attract staff in recent years, sometimes at unsustainable levels.
"However, as we’ve already seen for the latter half of this year, it’s likely 2023 will continue to see salary hikes slow as businesses brace for the recession and grapple with increased operating costs.
"The sustainability agenda is also likely to be of ever-increasing relevance for professional service firms. Recent global conferences and public outcry have continued to highlight the importance of tackling climate change.
"Businesses are facing increasing pressure to implement meaningful ESG strategies, so professional service firms are likely to allocate significant resources to put such strategies in place in 2023."
Frank Barrett, CEO at WN VTech
"There are many reasons to be optimistic about 2023 in the sustainable transport space. As more and more people begin to look at electric vehicles, we are already seeing wide development and a greater understanding of the sector.
"We can expect greater clarity around the infrastructure requirements for electrification, as well as new methods of funding.
"A focus on the whole package, not just the vehicle, will provide better understanding of the total cost of ownership for the general population. This will take things forward at a greater pace in 2023.
"Making electric vehicles more accessible will, ultimately, help set the economy on a course for green, sustainable growth, and importantly will help combat rising fuel prices."
Cameron Lee, head of strategy at Total Processing
"Last year, digital payments continued to triumph and it is clear that cash is no longer king. People don’t pay like they used to.
"Contactless payments are skyrocketing, with consumers increasingly embracing digital-only banks. "In 2023, we can expect to see digital wallets close the gap on physical cards. People would be surprised at how quickly it’s happening.
"A third of all online transactions are already made with a digital wallet, like Apple Pay and Google Pay, and that’s only going to go up.
"It’s the easiest and the fastest way to pay. Any merchants that aren’t already accommodating for it will need to keep up.
"This will be especially important for ecommerce. By 2024, ecommerce is expected to account for a third of all sales and a vital avenue for retailers looking to expand into the international market, which makes it one to look out for over the next year.
"The way people pay has never evolved quicker. The best, streamlined checkout systems look nothing like they did this time last year, and it’ll be interesting to see how the digital payments landscape evolves in 2023."
Jonny Saatchi, managing director of MC2
"2023 will pose a number of challenges for high-growth businesses. It is going to be a very tough economic environment. But as with every cycle, new opportunities will always arise too.
"Everything is going to feel more competitive. Raising money (in particular at a desired valuation) will get harder, lead generation more problematic and attracting and retaining talent will be a continual battle.
"So, we believe the ‘winners’ will be the businesses who are relentlessly audience-centric. It is so easy to become too inward-focused . But when macro headwinds set in it is more important than ever that we relook at marketing strategy and ensure every piece of activity is designed with a specific stakeholder or stakeholder group firmly in mind."
Mike Carr, CEO and co-founder at Crowd Network
"I have seen 2023 described as 'The year podcasting has to pay for itself'. But what does that mean? Put simply, podcast companies must balance the books, which has not always been the case in the feeding frenzy of the early wild west years of this new(ish) industry.
"Long-term this will secure the future of podcasting, but how you create a strategy in this turbulent market will be the key to success.
"Whatever the content produced, the diversification of revenue streams will allow podcast companies to attack on all fronts and be less reliant on an unpredictable advertising market.
"We will see more podcasting companies diversify revenue streams through lucrative live tours, merchandise and brand partnerships.
"Subscription models will continue to develop as we learn more about what the audience is and isn’t willing to pay for.
"There will be more creative brand partnerships as brands look for engagement and community rather than a high-volume scattergun approach.
"Video, and in particular YouTube, has the potential to be a game changer for the industry. YouTube is investing heavily to launch more tools and features that speak to audio-only creators, which will include the launch of audio ads and other monetisation mechanisms.
"If successful, podcasting will change significantly to fully embrace video. The industry has gained significant momentum in the last few years and the opportunities are now endless."
Adrian Reed, managing director and head of Manchester office at Houlihan Lokey
"In 2023, we're expecting a similar focus on resilience as we've seen in 2022. Across all sectors this means homing in on companies building efficiency for their clients – delivering better products and services with improved outcomes for less (to help companies deal with cost pressures), while in our debt team – they will be helping corporates to manage balance sheets, provide financial support for continued growth and even M&A, by tapping into sophisticated financing solutions. This will be underpinned by a focus on digitisation across all industries.
"We do expect to see some investors holding off to see how the economic market pans out in the early months of the year, but there's still lots of money out there.
"Rightly so, this money will be focused on only the best, robust, resilient and forward-thinking companies.
"Preparation will be key for any business coming to market. Realistic performance forecasts, a clear and proven value proposition differentiated products or service, and measurable targets will stand you in good stead with investors."
Sebastien Leusch, investment director at Equistone Partners Europe
"Looking to 2023, until there is more clarity about the economic outlook, there's certainly an element of 'wait and see' in the corporate finance market.
"In the first few months of the year, we're likely to see an easing of this uncertainty, and debt markets will become more active.
"Despite these more challenging economic conditions, there is still deal activity. Debt funds and PE houses still have a significant amount of capital ready to invest into good businesses.
"As economic uncertainty eases and debt markets improve, we'll likely see debt volumes pick up again."
Paul Johnston, regional managing director at Secure Trust Bank Commercial Finance
"I have no doubt that conversations about funding will be higher on the agenda of all businesses across the North West in 2023.
"The UK economy has endured considerable uncertainty over the past three years and organisations have had to change and adapt; whilst this has created new opportunities for many, the relative volatility of peaks and troughs on the balance sheet has created funding challenges.
"The focus for many lenders remains on historic earnings when it comes to providing fiscal support, and determining what ‘normalised’ looks like in the current environment has its challenges.
"This is turning more organisations and their advisors in the North West to consider alternative finance structures such as asset based lending. In 2023, I expect this trend to continue.
"The flame of ingenuity and entrepreneurship continues to shine brightly in the North West of England and as financiers, across next year and beyond we have a collective responsibility to tend to that flame and ensure it can continue to shine brightly.
"Creating more opportunities for the region’s innovative and traditional businesses, will in-turn fuel our economy and bring about a more promising future.
"We must give our businesses the means to meet their ambitions, and funders have a huge role to play in that."
Gavin Currie, managing director at Legacie Developments
"As a business in the development sector, we are at the mercy of global market forces. The war in Ukraine, soaring energy prices and the cost-of-living crisis have all made for challenging economic headwinds.
"I think the issues all businesses faced in 2022 was the lack of certainty around supply chain and the various challenges it has posed - whether that's costs or delivery timeframes.
"However, we predict that we will continue to see steady demand from institutional lenders for high-quality residential schemes in 2023.
"As we near completion on some of our projects in the North West and kickstart work on exciting new developments, I’m predicting a successful 2023 both for the business and the sector more widely."
Adam Gallagher, co-founder of Intelligent FS
"2022 has been another year in which residential buildings have been alleviated of dangerous cladding. As an industry, we have seen the global marketplace turned on its head as a result of the war in Ukraine which has caused issues with lead times, delivery and costs.
"After experiencing Brexit, the pandemic and now the war in Europe, the global economy has remained resilient so I'm hopeful the international supply chain follows suit and settles down.
"However a building left languishing, covered in unsafe material, is one too many. There is a lot to do and we are on a mission to make Britain's buildings safe and sustainable.
"I believe 2023 will be a big year both for the business and firms operating in the built environment."
Dr Mark McBride-Wright, founder of Equal Engineers
"We carried out groundbreaking research this year into 'Masculinity in Engineering' and uncovered shocking data showing male construction workers are almost four times more likely to take their own life than the average of those working in any other industry and 40% of LGBTQ+ engineers have considered self-harm or suicide.
"I am driven by an understanding that better ED&I programmes are essential to improve performance and wellbeing, so in 2023 I plan to engage thousands more people through events, public speaking and training to ensure organisations across the sector are truly inclusive environments.
"Also in 2023, I expect to guide more companies into making more meaningful efforts to improve ED&I and I have no doubt we will see more programmes popping up inside major corporations to aid this.
"I believe we will see more diverse students entering into the industry too, particularly through our national Pathways Programme, and our InterEngineering network - which connects, informs and empowers thousands of LGBTQ+ engineers - will continue to grow and further address inclusion issues within the sector while amplifying the important work of this demographic."
Mark Sellers, managing director at TalkTalk Business
"In 2023 I expect we will see businesses embrace bandwidth on demand, with more organisations taking control of their own bandwidth due to improved flexibility allowing speed to be dialed up or down as needed.
"Something which can be done in response to the peaks and troughs of seasonal trading periods or expansion plans- providing a more cost-effective approach.
"Integrated network software is what makes this achievable. With previous scenarios of any network changes having to be made by engineers visiting sites, resulting in more time and cost endured, this change is a welcomed one.
"A software-defined network with bandwidth on demand is a game-changer for all businesses, and we are excited to see what the new year brings!
"I also expect we will see the digital transformation trends of the past two years continue, with businesses investing in a resilient, secure and reliable network as a foundation for communication, and data sharing- meaning more flexible work environments. And with this year’s financials already being stretched by rising energy costs its time bandwidth is viewed as something your organisation can take control of."
Adam Haines, partner and specialist employment lawyer Aaron & Partners
"Due to the Brexit restraints placed on immigration, the past year has seen the UK’s skills shortage go from bad to worse. And with historically low levels of unemployment, many companies are turning to other countries to address these issues.
"This is an ongoing problem that isn’t going away – and we think it will be one of 2023’s biggest talking points for the legal sector, particularly in employment As the economy continues to adjust post-Brexit.
"At Aaron & Partners, our team has seen a huge increase in demand from companies that need help filling vacancies. We’re working hard to help local companies bring in skilled workers including engineers, scientists, care workers, and pharmacists across a range of sectors.
"We expect engineering, manufacturing, pharmacy and healthcare to be the most prevalent occupations set to report shortages over the next year."
Craig Beck, CW4.0 engagement lead at the Virtual Engineering Centre
"Despite the political and economic uncertainty of the last 12 months, the North West's manufacturing industry has remained resilient and continued to look at ways to become the UK's epicentre for innovation.
"2022 has seen further digital progress made right across the region, as the benefits in digitising continue to be sought after. Through CW4.0, which is part funded by the European Regional Development Fund (ERDF), we have seen a continually high level of interest among SMEs in the management of data, digital twinning and creating digital visualisations, whether that is through VR, Matterport or Lidar scanning.
"Like so many industries, the last year has seen a skills shortage throughout the technology spectrum, however the talent base stemming from the North West’s universities and the region's continued work in upskilling, provides much to be optimistic for.
"As we look forward to the next year and continue to work towards a collective greener future, decarbonisation will remain high on the agenda, leading many to Industry 4.0 technologies.
"CW4.0 applications for the next cohort of businesses looking to realise and achieve their full potential with the help of digital technologies remain open.
"We urge anyone interested in applying to take advantage of this opportunity, which offers fully funded support and guidance from an array of experts whilst providing access to world-class facilities."
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