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P.ublished 25th October 2023
business
Supply Chain Disruption Remains Thorn In The Side For Yorkshire Businesses – BDO Finds
Image by Jens P. Raak from Pixabay
According to BDO LLP’s bi-monthly Economic Engine survey of 500 mid-market businesses, two in ten Yorkshire companies (19%) have ranked supply chain pressures as one of their top challenges, with issues such as folding suppliers, stock shortages, and rising costs topping the list.
The survey by the accountancy and business advisory firm found that along with supply chain issues, companies are still worried about energy bills, with 87% of businesses in Yorkshire more concerned about rising energy costs this year than they were last year.
Terry Jones
“The economic landscape remains fraught with difficulties for Yorkshire businesses, as they continue to grapple with supply chain, inflation, interest rates, and general business cost issues.
“While we have seen positive progress on inflation, with the Bank of England responding in turn, the pace of change is not enough for many, with other external factors exacerbating the problems being faced by businesses. As a result, many are calling on the Government for more support in areas such as support to enable them to invest in new technology, and more specific measures around research and development incentives to help fuel growth, as well as less stringent requirements around mergers and acquisitions. Clearly more needs to be done in the eyes of Yorkshire businesses.”
However, despite the pressures being faced by regional companies, businesses have a firm eye on priorities for the next six months, as they attempt to readdress the balance. According to BDO’s Economic Engine survey, 29% of Yorkshire businesses intend to take on new equity investment, with nearly a quarter (23%) focusing on upgrading premises for larger space, or moving to a better location to help facilitate growth plans.
Yorkshire businesses are also taking a proactive approach to recruitment over the next six months, with 39% offering additional benefits to attract new recruits, such as permanent remote working, subsidised travel, and childcare vouchers. What’s more, 35% are hiring more graduates and apprentices.
Jones added:
“Time and again we see so many examples of businesses across the region refusing to lie down and be beaten by the bruising economic headwinds. Unsurprisingly, more than a quarter of Yorkshire companies (29%) feel confident about the current business and economic environment and have a solid strategy in place to overcome challenges and future-proof their business.
“There’s little doubt that this approach will be crucial in the months to come as companies contend with ongoing pressures, with many adapting to reflect changing consumer behaviours.”
“Time and again we see so many examples of businesses across the region refusing to lie down and be beaten by the bruising economic headwinds. Unsurprisingly, more than a quarter of Yorkshire companies (29%) feel confident about the current business and economic environment and have a solid strategy in place to overcome challenges and future-proof their business.
“There’s little doubt that this approach will be crucial in the months to come as companies contend with ongoing pressures, with many adapting to reflect changing consumer behaviours.”