Yorkshire businesses prioritise digital investment and refining focus

In 2023, mid-sized businesses in Yorkshire will prioritise investment in digital, downsizing to improve focus, increasing strategic hiring and cutting products or services which underperform.

Research conducted by accountancy and business advisory firm, BDO also found that the region’s business leaders are calling for increased action and more targeted support from the Government. They require new investment in apprenticeship and skills programmes, as well as new policy frameworks for recruitment and workforce upskilling.

Fiscal pressure remains a concern and unsurprisingly, businesses would like to see reduced corporation tax and fuel duty, as well as further financial support to help manage supply chains.

Terry Jones, head of BDO in Yorkshire, said: “Businesses are more optimistic going into 2023 than they were this time last year and more than three quarters (77 per cent) expect inflationary pressures to ease in the first half of the year. This sets a positive tone, but some business priorities have been delayed because of the squeeze on costs.”

Sustainability tops the agenda with a fifth of Yorkshire businesses set to introduce enhanced ESG measures and over a quarter (27 per cent) hoping to see Government incentives for investment in energy efficiency. However, the current backdrop has put a pause on improving green credentials for some, with half delaying measures to address climate change.

Half have also delayed recruiting digital supply chain talent, while the same number have put a pause on supply chain transparency, visibility and planning and over a third (38 per cent) have postponed investment in risk management technology.

Terry added: “Ambitions are clear, but businesses also have a keen eye on driving efficiencies and mitigating risk. The region’s most successful businesses will have an eye on growth while simultaneously addressing the ways to make this sustainable for the long-term.”