UK Mid‑Sized Businesses Grapple with Supply‑Chain Chaos and Rising Costs
According to the latest survey from accounting giant BDO, the biggest headache for medium‑sized firms in Britain is a perfect storm: supply‑chain snags, soaring prices, and a worried consumer base.
Key Findings – The Numbers Speak
- Supply‑Chain Costs lead the worry list: 49% say it’s the top concern before Christmas.
- Disruption itself cripples a third of companies.
- Only 16% flag energy bills as their biggest worry.
- Over a quarter (27%) fear customers pulling out cash‑cows due to the cost‑of‑living squeeze.
- In leisure and hospitality, that fear bumps to 30% – exactly the pulse‑coiling moment before holiday peak.
How Firms Are Responding
When you count rising costs, supply‑chain tantrums and a dip in consumer spending, the answer isn’t “just wait.” Instead, firms are taking knee‑deep action:
- 17% are soaking up extra costs, keeping prices flat for the customer.
- 20% are raising their own price tags.
- Another 17% watch their headband get tighter; layoffs are on the table.
- Harder still: 18% are turning to new debt or stretching overdrafts – all while interest rates are sky‑high.
- Not surprisingly, 30% say borrowing costs are an alarm bell ringing in their ears.
All in all, mid‑var firms are feeling the squeeze: a three‑fold challenge that hits at every corner. The only thing certain? If you’re a small‑to‑medium player, you’ll need to stay nimble and keep an eye on the market pulse.
Firms remain optimistic despite mounting headwinds
2023: A Candle of Hope in a Foggy Business Landscape
Even with all the economic twists and turns that seemed to have turned the market into a carousel of uncertainty, companies are marching into 2023 with a swagger that says, “We’re not just surviving— we’re thriving!” The data? Pretty sweet.
Performance: Surprises Galore
- 72% of businesses are already ahead of their 2022 projection, shaking up the old “outlook” card.
- Although inflation, supply‑chain hiccups, and mild recession chatter are trying to pull things down, the buzz on the street shows a resilient optimism.
Funding: The Early Bird Specials
- 60% of firms are racing to secure funding before the planned timelines, all because they’ve got a new idea that’s too hot to wait.
- A notable 20% are pulling out the green for new product or service launches—think of it as investing in tomorrow while still using today’s money.
What This Means for 2023
It’s not just numbers; it’s a narrative of companies turning challenges into launchpads. Innovation isn’t a stop‑gap—it’s a full‑blown launch by the way most firms are steering the ship. If fortunes and futures were a sitcom, we’re definitely in the “open season” episode with plenty of hope, witty dialogues, and, of course, that pensive look at the future … let’s hope for a good cliffhanger!
Firms call on government to help manage supply chain concerns
UK Businesses Urge Government Aid for 2023
In a clear call to action, business owners across the UK are pulling the trigger on what they believe is essential support for the coming year. The focus? Making sure supply chain bottlenecks don’t turn into full blown cash crunches, and cutting those overwhelming energy bills that’ve been a headline staple all year.
What They’re Asking For
- Supply chain relief – 23% of respondents want structured government support to smooth out these crucial headaches.
- Energy bill assistance – 19% are looking for help to curb the mounting costs that have become the talk of the town.
The Conversation with Ed Dwan
Ed Dwan, Partner at BDO LLP, summed it up in no uncertain terms: “2022 was supposed to be the year of economic rebound, but the reality’s been a roller‑coaster of energy crises, political jitters, and record‑setting inflation.”
He pointed out that mid‑size businesses are the real powerhouses of the economy, yet they’re feeling the squeeze from rising energy and supply chain snags. “It’s high time the government stepped in to help these firms survive and grow in 2023,” he added.
Why It Matters
Mid‑size companies are often the backbone of local economies, creating jobs and driving innovation. When they buckle under supply strain or runaway costs, the ripple effects can hit everything from consumers to top‑tier manufacturers.
What to Keep an Eye On
Heads up – the conversation is only beginning. Whether the government’s future plans include dedicated support packages or more general stimulus, businesses are keen to receive a concrete outline. Stay tuned for policy updates and a chance for these companies to raise their voices.
