East Anglia firms defy export gloom with big growth plans

BDO’s survey of over 500 mid-sized businesses reveals that more than half of regional companies are confident about their growth prospects over the next 12 months. Expansion plans include opening new premises, recruiting extra staff and investing in fresh technologies and R&D.

They see exports as an important part of their growth strategy over the next year – with more than a quarter (29 per cent) citing better margins or profitability or cultural similarities as motivating factors. More than half (53 per cent) said favourable trade agreements or government support in receiving markets makes them more attractive.

Asked which regions would be the most appealing, 62 per cent said Eastern Europe and Central Asia as businesses work to forge new trade corridors amid ongoing negotiations between the UK and other territories. Similarly, half of the companies surveyed said they were most interested in Asia-Pacific.

For more than a third (38 per cent), the opportunity to diversify away from dependence on other markets, such as the European Union, was a deciding factor.

As the Government continues to discuss favourable terms on trade with the United States, North America ranked as an attractive export region for nearly half (47 per cent).

Despite optimism amongst East Anglia businesses, major challenges could still stifle growth prospects. Over half consider the combination of overseas trade complications and supply chain pressures, including changing tariffs and delays or shortages in distribution networks, as a top challenge. This follows continued uncertainty around trade tariffs for the US market.

Peter Harrup, regional managing partner at BDO in East Anglia, said: “These findings show the resilience of the East Anglia mid-market in the face of significant challenges and their potential to be a major international force for UK economic growth.

“Mid-sized businesses in the region generate significant revenues and support hundreds of thousands of private sector jobs. Frictionless trade is crucial to help these companies power the UK economy forward.

“Although the Trade Strategy published last week is welcome, targeted support for mid-sized businesses – whether that’s new hubs to support them to export or trade deals enabling their access to international markets – must build on this and create the right conditions to help them deliver their plans for growth and thrive.”