• Swindon & Wiltshire Economy
• Tuesday January 2 2024
• Author Name: Peter Davison

South West firms pick productivity, growth and hiring as top New Year’s resolutions – Lloyds Bank

A new survey from Lloyds Bank has revealed South West business’ top areas of focus for 2024: increasing staff wages, business development and investment in training.

The research reveals that two-fifths (41 per cent) of South West firms have made 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 was 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 two-fifths (43 per cent) wanting to increase staff wages, a third (34 per cent) focused on developing their business and a third (32 per cent) committed to investing in training.

Many businesses said they are looking at ways to ensure they have a healthy cashflow, with more than a third (36 per cent) of firms reporting plans to keep a closer eye on costs over the next 12 months, the data suggests.

The data also shows that businesses are setting themselves up for growth, by building teams to support new opportunities, with more than half (53 per cent) expecting to hire more staff in the New Year.

With the expectation of inflation continuing to fall, three-quarters (76 per cent) of firms are confident that they will see their business become more profitable in 2024 compared to 2023.

Over two-thirds (71 per cent) expect their turnover to increase in 2024. Of those expecting an increase in turnover, more than a quarter (27 per cent) anticipate growth of five per cent to 10 per cent and almost a fifth (16 per cent) have eyes on growth of 11 per cent to 20 per cent.

Amanda Dorel, regional director for the South West at Lloyds Bank Commercial Banking, said: “While last year had its challenges, the recent fall in inflation and stabilisation of interest rates are helping to create an environment where South West firms are feeling more confident to take steps to boost their productivity and target growth.

“It’s encouraging to see firms in our region setting ambitious plans for 2024. Hopefully the New Year will see demand for our world-class tourism and hospitality services improve further, and help fuel growth across the region this year.”