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2:00 AM 16th December 2024
business

Tech Opportunities Fuel High Levels Of Confidence For Yorkshire’s Private Firms Heading Into 2025



KPMG Leeds
KPMG Leeds
More than nine in 10 (91%) private business owners in Yorkshire and the Humber are confident of delivering growth in 2025, according to KPMG UK’s first ever Private Enterprise Barometer.

The new poll gauged optimism among 1,500 private business owners, including 128 in Yorkshire and the Humber, across a range of sectors including professional services, finance, technology, industrial manufacturing and retail.

Increased demand for products and services was identified as the main reason for this confident outlook – cited by nearly half (48%) of respondents – while a similar number (46%) highlighted plans to introduce new technologies into their business as reason for optimism. Indeed, Yorkshire-based businesses are amongst the most likely to recognise the benefits of introducing new technologies, with almost three quarters (71%) highlighting it as an important area for investment, compared to just 63% of privately held businesses nationwide.

Cited amongst the key reasons for such investment were a clear desire to improve customer service (52%) and decision-making (52%). Indeed, firms in the region are 10 percentage points more likely than the national average to be investing in customer relationship management (CRM) tech.

However, securing and developing the necessary skills for businesses to capitalise on growth and digitalisation opportunities continues to represent a challenge. More than a third (37%) of firms in Yorkshire and the Humber were said to be finding it difficult to recruit people with the right skills. Firms in the region were also found to be more likely than the national average to be struggling with retaining newly recruited staff (32% vs the national average of 25%).

Recognising the growing demand for tech-based business solutions, and a growing tech and digital expertise in Yorkshire, KPMG recently launched its new digital advisory and delivery service, Curve, in Leeds. Curve will provide clients with access to digital engineering resource that they might not have in-house to help them with their technical challenges and digital transformations.

Having weathered many storms in recent years, it’s down to the true resilience of Yorkshire and Humberside’s private business community that confidence is so high.

Regional business leaders’ clear focus on customer proposition, improving products and services, and better understanding business performance, will continue to help them to deliver growth. Also identifying where new technologies can support key strategic goals is the smart way to future-proof and stay ahead of competitors.

Guiding the region’s business community through unprecedented digital opportunity and disruption will require businesses to get their hands on the right skills. Taking the plunge and investing in talent is key.
Phil Murden, Leeds Office Senior Partner at KPMG UK,


National outlook

92% of Britain’s private business owners are confident of growth in 2025.

Those businesses with lower degrees of confidence highlighted challenges such as increased competition and access to funding as limiting factors.

When it comes to areas of planned investment over the next 12 months, technology was ranked as the highest priority (63%), followed by skills and workforce (49%). Of those looking at future tech investment, almost three quarters (73%) plan to invest in AI to improve the customer experience.

2024 has been a turbulent year, so it’s pleasing to see that private businesses are showing resilience and casting a very positive outlook for growth and investment in 2025 and beyond.

Going into 2025 buoyed by this optimism will help these firms drive results in what will likely be another tough year. Investment in areas like technology and talent will be essential for firms to realise their growth ambitions and make a significant impact on the UK’s economic health.
Euan West, Head of KPMG Private Enterprise in the UK and EMA