More West Midlands businesses are investing in their workforce in 2014 than any other region in the UK, research by leading business funder Bibby Financial Services has revealed. Findings come as the funder opens its West Midlands Business Centre in Birmingham on 8 October.
The funder’s quarterly SME Tracker, which surveys 1,000 businesses with turnover of up to £25 million and employee numbers up to 250, found that where other regions have invested in new product development and technology, West Midlands businesses are choosing to invest in their people.
David Postings, UK Chief Executive Office at Bibby Financial Services said: “The West Midlands is a hotbed for growth and entrepreneurship and it is encouraging that businesses in the region have invested in recruitment and training over recent months. I believe it is these ambitious, growing enterprises that will help to fuel further economic stability throughout the UK.”
In relation to recruitment, West Midlands businesses were top, with 42 per cent taking on new staff – nearly double that of firms in the South East (22 per cent), and comparable only to Yorkshire and Humberside.
The region was also the highest in the UK for investment in current staff (41 per cent), above the UK average of 32 per cent, and a significant rise from 29 per cent in the second quarter of the year.
More than three quarters of West Midlands firms (76 per cent) surveyed said they invested in their business in the three months leading up to October. Alongside the North West, it was the highest region for investment in the country, above the national average of 70 per cent.
Mr Postings continued: “It’s widely recognised that the West Midlands is a great place to do business and – developing beyond our strong industrial heritage - over recent years the region’s central location and supporting infrastructure links to the rest of the UK and further afield, have put it firmly on the map as an area of inward investment.
“This is paying dividends for the region’s small and medium sized business network, who have benefited through rising demand for their goods and services, which has led to this increasing workforce investment”, he added.
Tim Pile, President of Birmingham Chamber of Commerce, said: “This report, as well as the Chamber’s own surveys, is showing that confidence about the future remains high among firms in Greater Birmingham. It demonstrates the resilience and huge determination of companies in the region to maintain the impetus of success which has come out of the downturn.”
The findings coincide with the publication of the Building Future Growth report from Bibby Financial Services, launched at the official opening of the funder’s new office in Birmingham on October 8.
Since 2009, Bibby Financial Services has increased funding to the region’s businesses from £22 million to £40 million and the funder hopes to provide further financial support following the opening of the West Midlands Business Centre.
Mr Postings added: “We understand the region’s potential, which is why we’re investing and the new business centre signifies our commitment. The West Midlands Business Centre will provide dedicated support to businesses in the area, helping them to secure the funding that they need and allowing them to grow.
“With both the launch of our TV campaign in May and record sales month in July, we have had a strong year. The opening of the new office in Birmingham is just the start of our plans for the West Midlands region”, Mr Postings concluded.