BDO provides a full audit, tax and business advisory service to clients in every major financial centre from Swindon down into the South West Peninsula and from Cheltenham to Poole, taking in Exeter, Plymouth and South Wales.
REGIONAL SNAPSHOT
South West businesses are expecting to return to pre-COVID-19 revenues in the next 7-12 months, while positive they face pressure from unpredictable demand, staff shortages and getting access to funding.
REGIONAL HIGHLIGHTS
Our latest rethinking the economy survey, found that mid-market businesses in the South West are clearly facing challenges with supply chain issues and the cost of living crisis. When asked about the biggest threats facing their business over the next 6 months, more than half (53%) or respondents stated supply chain issues, 37% stated rising energy costs, and a further 27% stated the overall cost of living crisis.
When asked how their business is responding to both inflation and the cost of living crisis, 37% are having to result to changing to cheaper overseas suppliers, while 33% are focused on driving new innovation (e.g. launching new products or services, or introducing new systems to increase efficiency). However, an additional 33% are going the other way and reducing the number of goods or services being offered to streamline their business.
In dealing with supply chain complexities, companies are taking steps to make their supply chains more resilient. In the last 12 months 43% of South West businesses are introducing technology for supply chain analytics and a further 43% have regionalised the supply chain/nearshored production.