South Yorkshire Businesses Highlight Growth Ambitions Amid Challenging Conditions
Today we've released the latest findings from our Quarterly Economic Survey (QES), offering a timely snapshot of business sentiment and economic conditions across the region.
Covering the period from April to June, the survey captures the views of businesses across Barnsley, Rotherham, Doncaster, and Sheffield. Feeding into the British Chambers of Commerce’s national dataset, the QES serves as a vital barometer of regional economic health and informs both local and national policy discussions.
This quarter’s survey focused on two key themes: business growth and international trade. The findings paint a mixed picture. While many businesses remain optimistic and focused on increasing sales, their ambitions are tempered by ongoing geopolitical uncertainty and systemic trade barriers.
The results highlight a region eager to expand, with 70% of businesses identifying increased sales as their top priority for the year ahead. However, firms report needing more targeted support in areas such as marketing, business development, and workforce skills to fully realise their growth potential.
Among those who had not exported their products or services in the past, less than one-in-ten (9%) were interested in exporting in the future, with three-quarters (75%) being uninterested and 16% being unsure. Many cited difficult economic conditions and government policies perceived as restrictive as major obstacles to wider market engagement.
Louisa Harrison-Walker OBE, Chief Executive of Sheffield Chamber of Commerce, commented:
“The strong focus on increasing sales shows that businesses are determined to grow despite the tough economic climate. Clearly, there’s more work to be done to boost business confidence in trade, given the local area’s exceptional expertise in a wide range of global industries such as high-precision engineering, metals and alloy production, to name a few.”
The survey also laid bare the hurdles South Yorkshire exporters face, with tariffs, regulatory red tape, and shipping logistics emerging as major obstacles. Although government support programmes are moderately known, few businesses are taking advantage. Among companies not currently exporting, appetite for international trade remains low; held back more by limited capacity and doubts over profitability than by tariffs themselves.
South Yorkshire hosts many growth-driving tradable sectors including creative industries, world-leading services, life sciences, renewables and emerging technologies.
She added:
“It’s crucial that barriers to trade are removed as much as possible. We, as South Yorkshire Chambers, are taking up the call to action to support businesses to create an environment where firms feel confident to explore new opportunities both at home and abroad.”
Each edition of the QES also includes a set of ‘snapshot’ questions on topical issues facing local firms. Previous surveys have explored themes such as skills shortages, innovation, and access to finance.
This insight follows the publication of the Government’s 10-Year Industrial and Infrastructure Strategies, as well as confirmation from South Yorkshire’s Mayor on the timeline for a final decision regarding the reopening of South Yorkshire’s airport. Harrison-Walker continues:
“A reopened airport will provide international connectivity as well as freight and cargo capability; having these facilities on our doorstep will help exporters and potential exporters more easily access overseas markets. Moving this project forward at pace will play a role in encouraging more of our firms to internationalise.”
The findings from this quarter are expected to support ongoing dialogue with policymakers and stakeholders as we look to build greater economic resilience and unlock the region’s full growth potential.
The fragile local economy remains a theme, with domestic sales and orders weak, impacting business capacity and cash flow. Encouragingly, some early signs of recovery emerged in the findings, including rising workforce growth expectations and easing price pressures on fuel and overheads.
Commenting on the survey, Carrie Sudbury, Chief Executive of Barnsley & Rotherham Chamber of Commerce, said:
“These findings show the real challenges local businesses are dealing with, especially slow sales at home and cashflow problems that affect how they run and grow. But despite these difficulties, there are early signs of improvement, with costs starting to ease, which is a welcome relief. The survey shows that many businesses feel like they’re running to stand still. It’s important that we provide support that is easy to access, practical, and tailored to each business’s situation, especially with the constant changes happening around them.”
Recruitment difficulties continue to pose a significant challenge for many businesses across South Yorkshire, particularly in securing skilled manual and technical workers. Employers report a shortage of candidates with the specialised skills needed to meet industry demands. This not only hampers business growth but also places additional pressure on existing staff. Rising employment costs remain a major concern, impacting profitability and forcing some companies to carefully balance wage increases with other operational expenses.
Dan Fell, our Chief Executive at Doncaster Chamber of Commerce, cautioned:
“There’s cautious optimism around workforce growth, which is encouraging. But to capitalise on major planned investments, skills development is critical. Through our Local Skills Improvement Plan, South Yorkshire Chambers are working closely with education providers to ensure the region has the talent needed to power the future of advanced manufacturing, digital innovation and clean energy.”
We invite businesses and stakeholders to participate in our upcoming quarterly QES webinar on 17 July to discuss these findings and explore their implications. The full report is available for those seeking a detailed analysis.
Fell continued:
“The Quarterly Economic Survey continues to provide vital insights that help inform regional economic strategies and ensure the voice of business is heard. South Yorkshire businesses demonstrate resilience and ambition, and with the right support, they are ready to drive growth. What’s needed now are fast, confident decisions, from both local and national leaders, that can unlock progress and help our region reach its full potential.”
Looking ahead, the next QES will focus on health and wellbeing among business leaders, reflecting evolving priorities within the regional business community.
Sian Booth
Head of Policy and Partnerships
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