Mid Wales firms reveal optimism despite trade challenges
Chambers Wales South East, South West, and Mid have released the results of their latest Quarterly Economic Survey, shedding light on the current state of businesses in Mid Wales. Despite ongoing trade challenges, the survey indicates that a significant number of firms remain optimistic about their future prospects.
According to the report, 50 percent of businesses surveyed expressed confidence that their turnover would improve over the next 12 months. Additionally, 42 percent predicted a boost in profitability, marking a slight increase of two percent compared to the previous quarter. These positive sentiments indicate a growing sense of optimism among Welsh businesses.
However, the survey also highlights persistent obstacles in the form of trade challenges and investment limitations, which continue to impact long-term growth strategies. The data reveals that during the last quarter, only 23 percent of businesses in Wales increased their investment in plant and machinery or equipment. Similarly, only 16 percent reported an increase in training investments.
Alarmingly, 52 percent of Welsh businesses chose to maintain their investment plans for plant and machinery or equipment, while 66 percent stuck to their original investment plans for training in the fourth quarter of 2023. The lack of significant movement in these areas indicates the cautious approach adopted by many Welsh firms amidst the uncertain economic climate.
Furthermore, the survey indicates that businesses in Wales have experienced declines in both domestic and international sales and orders. In quarter four, UK sales and advance orders decreased by 35 percent, while export sales and advance orders to overseas markets plummeted by 44 percent. These trade setbacks have prompted approximately 75 percent of businesses in Wales to explore new markets as a means of recovery.
Paul Butterworth, CEO of Chambers Wales South East, South West, and Mid, commented on the survey findings, saying, Our latest Quarterly Economic Survey results show a small rise in business confidence and optimism in Q4; the shoots of confidence and growth are starting to appear as we begin the new year. Butterworth also emphasized the need for policymakers to prioritize stable economic conditions and support long-term growth for businesses, particularly with an impending general election on the horizon.
Despite the prevailing challenges, there is a glimmer of hope that Welsh businesses are weathering the storm and maintaining a positive outlook for the future. The survey results provide valuable insights into the current economic climate, allowing policymakers and businesses alike to make informed decisions to support growth and navigate the challenges ahead.
