Thriving in The Humber - What's in store for businesses in 2025
- 10th January 2025
The Humber region and Lincolnshire have long been vibrant hubs of innovation and resilience. It is essential to reflect on the journey through 2024 and prepare for what lies ahead in 2025.
Businesses here have faced a myriad of challenges, but their ability to adapt, evolve, and thrive demonstrates a unique regional tenacity. At Forrester Boyd, we’ve had the privilege of partnering with and advising some of these businesses, offering insights and support to respond and react to a fast-evolving economic landscape.
Lessons from Recent Years
The last decade has been marked by substantial developments in the region. The growth of the renewable energy sector, particularly offshore wind farms, has cemented the Humber’s position as a green energy capital. Simultaneously, the agricultural and food production industries in Lincolnshire have embraced innovation to address labour shortages, sustainability demands and changing consumer preferences.
Yet, these developments did not come without challenges and pain. The impact of Brexit and the COVID-19 pandemic forced many businesses to reassess their supply chains, workforce strategies, and market access. Inflationary pressures and rising energy costs also added further complexity.
“Businesses in our region have demonstrated remarkable resilience,” says Mike Beckett, Chairman at Forrester Boyd Chartered Accountants. “From adopting digital solutions to diversifying revenue streams, the adaptability of local businesses has been truly inspiring.”
What’s in Store for 2025
With the new UK Government firmly seated and the Autumn budget under its belt, it’s clear that ripples are being felt far and wide throughout the country. Announcements made in the Autumn Budget will lead to additional costs for many businesses with an increase in the minimum wage and an increase in National Insurance contributions. For many businesses they will not be able to absorb this additional cost burden without increasing their prices or reducing their costs. If businesses increase their prices this will potentially have an impact on inflation which may not fall to the Government’s target level which could then also have an impact on interest rates which may not fall as previously expected and hoped, which in turn means borrowing costs would remain at least at current levels. Rising costs of employment will also lead to some businesses considering their hiring decisions and annual pay reviews more carefully in 2025.
We are yet to learn the real economic impact of the US Election but there is the possibility of tariffs to export to the US. Other geopolitical factors from global insecurities may also continue to have an impact on supply chains and the cost of goods and services.
As we consider what 2025 has to offer, it’s clear there are opportunities, but also many hurdles. Here are some key areas that businesses in Lincolnshire and the Humber region may want to consider for continued success.
Sustainability and ESG Compliance
Sustainability is no longer just a buzzword; it is a business imperative. Companies that integrate Environmental, Social, and Governance (ESG) principles into their strategies will not only meet regulatory requirements but also enhance their market reputation. The Humber in particular is seen as one of the UK’s leading regions in decarbonisation with the Humber Energy Board (HEB) lobbying government to help unlock £15bn worth of private funding to decarbonise the area and transform the economy.[1]
“Many clients are now prioritising sustainable practices,” notes Jim Livermore, COO at Forrester Boyd. “From reducing carbon footprints to sustainable procurement, these initiatives are setting businesses apart and ensuring long-term viability. Some have positioned sustainability at the heart of their organisation giving them a clear USP against competitors and as more and more consumers focus their buying patterns on these factors, it’s clear for some this has been a winning strategy.”
Digital Transformation
The adoption of technology continues to revolutionise operations. From automating financial reporting to leveraging data analytics for strategic decision-making, digital tools are helping businesses gain a competitive edge.
However, it is crucial to invest in the right skills to fully leverage these technologies, as highlighted by the high confidence levels among private business owners in Yorkshire and the Humber who are focusing on identifying where new technologies can support key strategic goals.[2]
“Cloud accounting solutions have been game-changers,” says Matthew Priest, Partner and Outsourcing Lead at Forrester Boyd. “They’ve streamlined processes, improved accuracy, and provided real-time insights that are invaluable for growth.”
One major trend that we saw in 2024 was the rapid advancement and adoption of AI in the workplace. AI will continue to dominate in the digital transformation of businesses and is an area that should not be overlooked.
Workforce Development
Talent remains a critical factor. Addressing skills shortages and retaining top talent will be crucial as businesses compete in a challenging labour market. Upskilling existing staff and fostering a strong workplace culture can make a significant difference in retaining and attracting new talent.
“Investing in people is investing in success,” highlights Carrie Jensen, Partner and HR Lead. “From apprenticeships to leadership training, businesses that prioritise their workforce will see the rewards in productivity and innovation.”
Proactive Financial Planning
With economic uncertainty still a factor, robust financial planning is more important than ever. Tax efficiency, cash flow management, and strategic investments should be at the forefront of business strategies. Given the slow domestic sales and exports growth in the region, businesses need to be particularly vigilant about financial planning to mitigate these risks.[3]
“Good financial health is the foundation for growth,” explains Vicky Prior, Tax Partner. “At Forrester Boyd, we’re seeing an increased focus on scenario planning and risk mitigation to ensure businesses can weather any storm. Tax planning sits at the heart of this amidst the recent changes announced by the Government in the Autumn Statement.”
Benefit from expert opinions
Businesses do not have to navigate these complexities alone. As trusted accountants and business advisers, Forrester Boyd are committed to helping businesses achieve their goals. Whether through tax planning, succession strategies, or growth advisory, our role is to empower businesses to thrive.
“Collaboration is key,” says Kevin Hopper, Managing Partner at Forrester Boyd. “When businesses and advisers work together, the outcomes can be transformative.”
As Lincolnshire and the Humber region continues to evolve, the opportunities for growth and innovation are immense. By learning from the past and focusing on strategic priorities, businesses can look forward to a prosperous 2025. At Forrester Boyd, we are proud to support our clients on their unique journeys and remain committed to helping clients succeed every step of the way.
To arrange a free 30 minute consultation with Forrester Boyd, please head to https://www.forrester-boyd.co.uk/contact-us.
[1] https://www.thebusinessdesk.co...
All data and figures referred to in our news section are correct at the date of publishing and should not be relied upon as still current.
