Wales is a unique region, not just for its spectacular landscapes and ancient roots but also for its thriving business scene. The Welsh economy was worth roughly £73.5bn in 2018, boosted by a significant rise in sectors like construction and manufacturing.
But what’s been happening lately? Let’s dive into the latest Wales business news to catch up!
1. Economic recovery gathers pace
The Welsh economy took a massive hit in 2020, falling by 11.3% due to the COVID-19 pandemic. However, things are looking up. The IHS Markit/CIPS UK Regional Purchasing Managers’ Index (PMI) recently revealed that Welsh businesses had a surge in activity growth in May, hitting the highest in seven years. This means investors and businesses are starting to recover from the pandemic.
2. Tech funding boosts entrepreneurial spirit
When you think about tech startup hotspots, most people visualize London, Edinburgh, and Manchester. But startups in Wales have been quietly building up speed in recent years. In 2021, Wales-based tech startups secured over £100m ($137m) in funding, underscoring the region’s robust entrepreneurial spirit. It is a sign of the growing tech ecosystem of the Swansea and Cardiff areas, with companies like Forge Robotics raising £4m and the subscription finance platform, GoCardless, securing £450m in February 2021.
3. Brexit and the Welsh production industry
Brexit has proved challenging for many regions in the UK, and Wales is no exception. The nation predominantly relies on the production industry, with over 190,000 people employed in this sector. Leaving the European Union (EU) could impact the industry’s ability to trade and import machinery, as well as make it costlier to employ foreign workers.
4. Innovative family-run businesses
For hundreds of years, Welsh entrepreneurship has always been key to the region’s economy. Even today, there are plenty of innovative family-run businesses in Wales that are taking the region forward. For example, the Richards family from Merthyr Tydfil has recently launched the UK’s first 100% plant-based ice cream on the market. Their “Crumpet Cakes” went on sale this year, and their innovative approach has caught the attention of many.
The Welsh business scene is rapidly evolving, and we can expect further growth in the coming years. From rising tech startups to innovative family-run businesses, Wales is proving to be a region to watch. As it becomes clear that the economy is on the road to recovery, investors and businesses can look forward to a bright future ahead.
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