Confidence grows for Black Country firms

The new data, based on surveys completed by a record number of chamber member businesses, showed the improvement in the Black Country was above the national average.

The Black Country Chamber of Commerce Quarterly Economic Survey for the fourth quarter of 2023, published today, gives an up-to-date picture of the performance of the Black Country business community.

The results showed 71 per cent of businesses believed turnover will improve in the next 12 months, up from 55 per cent three months earlier.

The national results from the British Chamber of Commerce’s Quarterly Economic Survey, released last week, showed 56 per cent of firms were expecting an increase in turnover over the next year, the highest level since the first quarter of 2022 when Covid restrictions were lifted.

The new Black Country survey found 58 per cent of respondents said they expected profitability to improve in 2024, compared with 45 per cent in the previous quarter, yet the survey showed recruitment, wage inflation and rising energy costs are the biggest pressure points for businesses.

The results were announced at the Black Country Chamber of Commerce's first ever Quarterly Economic Survey data reveal event, held at the University of Wolverhampton Science Park.

The survey also found 58 per cent of respondents believe that profitability will improve, compared to 45 per cent in the previous quarter.

A further 36 per cent of firms reported an increase in domestic sales, up from 26 per cent in the last survey.

Just over half (57 per cent) of Black Country firms attempted to recruit over the past quarter, down from 71 per cent in the third quarter.

The results were unveiled during the briefing for Chamber members, which included a networking breakfast followed by a data presentation from Gemma Edwards, Black Country Chamber of Commerce policy, impact, and public affairs officer.

She Edwards said: “This quarter we have had our biggest response yet with 91 members completing the survey, giving us a snapshot of the feeling across the Black Country.

“The different sectors raise the same concerns around labour costs, utilities, and struggles to find sufficiently trained staff.

“Business confidence remains high, and it was encouraging to hear that our members were investing in new operating systems and technology to improve efficiencies, increase the workforce and expand the services they offer.”

Chamber chief excutive Sarah Moorhouse, who gave the closing remarks at the QES launch event, said: “The QES is an important source for us at the Chamber to review performance, concerns, and views of our businesses so it is encouraging to see our local members feel more positive than the national average.

“The difficulties firms are facing across recruitment, wage inflation and price increases for raw materials are still concerning. However, it is good to see some signs of positivity in business confidence of improving profitability and turnover in the next twelve months, and that businesses are looking to invest in training and equipment.”