• Swindon & Wiltshire Economy
• Monday January 19 2026

Central South mid-market turns to AI and productivity to support growth and hiring plans in 2026

Central South mid-market businesses are eyeing growth in 2026, turning to AI and productivity to support expansion plans.

According to the latest research from accountancy firm BDO, productivity improvements and incorporating technologies like AI will play a vital role in helping mid-sized companies achieve their growth ambitions in the next 12 months, with 44 per cent of regional business leaders ranking it as one of the main sources of growth in 2026.

In a survey of 500 mid-sized business leaders, growth from new products or services (41%) and M&A or partnerships (41 per cent) were also identified as key growth drivers for Central South businesses this year.

Against a backdrop of weakening business confidence and a subdued jobs market across much of the wider economy, the regional mid-market appears to be bucking the trend, with the majority of regional companies (82 per cent) looking to build on their investment plans by increasing headcount in 2026.

However, mid-sized businesses remain cautious, with over half (62 per cent) only expecting headcount to grow by up to 10 per cent.

The hiring intentions of regional businesses mirror separate BDO analysis suggesting that mid-sized businesses could add an additional 1.9 million jobs by 2028, bringing total mid-market employment to 9.9 million and reinforcing the role these businesses play in driving UK employment growth.

Investment in new capabilities, such as technology and AI, is driving headcount increases for 43 per cent of regional businesses – companies looking for staff with relevant skills in areas such as AI, data and digital transformation. Rising customer demand or new business opportunities
is another factor driving growth in recruitment for 36 per cent of those surveyed.

Looking ahead, almost a third of Central South mid-market businesses (32 per cent) are considering asset-based finance to fund their growth plans in 2026.

A further 29 per cent are looking to government grants and incentives, while 26 per cent are thinking about using private equity or venture capital investment.

Despite the cautious optimism for growth and investment, business leaders in the region remain mindful of the challenges ahead.

Regulation or compliance requirements are an issue for 29 per cent of Central South businesses, with weaknesses in international demand and the impact of geopolitics another key risk to business performance in 2026 for 23 per cent of regional companies.

Steve Le Bas, regional managing partner at BDO in Central South, said: “The Central South region has lots to be optimistic about despite economic turbulence, with strategic infrastructure and investment zones, and key sectors such as aerospace, driving regional growth.

“Mid-market businesses remain resilient and, despite erring on the side of caution, the growth ambitions of mid-sized businesses in the Central South have set down a marker for 2026.

“The mid-market is the UK’s economic engine – it is key to unlocking growth, but cost pressures still loom large.

“Turning ambition into delivery will depend not just on business strategy, but on whether the wider operating and policy environment allows the mid-market to do what it does best: invest, grow and create jobs.”