In the West Midlands, innovation is a lived reality witnessed in the region’s unwavering commitment to progress. The region’s business landscape sees 40% of companies make product and service innovation their top investment priority, outpacing the national average of 27%. This forward-thinking approach is especially transformative for the area’s manufacturing and automotive sectors, which are embracing new technologies and opening doors to future markets. As businesses here confidently invest in new ideas and improvements, they’re not only setting the pace for local growth, but demonstrating to the rest of the UK what’s possible when innovation leads the way.
88% confidence sets a new standard for innovation
The region stands as a beacon of business optimism, with 88% of leaders expressing confidence in the region’s future, nudging past the national figure of 87%. Even more striking is the 41% who describe themselves as “very confident”.
Yet, it’s the region’s commitment to innovation truly sets it apart; 40% of businesses here cite product and service innovation as their primary investment priority, a figure exceeding the national average of 27%, leading the country. This collective drive is a testament to ambition and tells the story of a region reimagining itself for the future, where each bold decision fuels progress and positions the West Midlands as the UK’s innovation powerhouse. Every product launch and service upgrade is a fresh chapter, written by forward-thinking leaders who believe that tomorrow’s success is built on today’s imagination.
Investing more, fearing less, and growing faster
Here, innovation is a strategic reality reflected by 41% of organisations prioritising investment in technology, slightly higher than the national average of 39%. The region keeps pace with the rest of the country in artificial intelligence, with 38% of businesses integrating AI into their plans.
Leaders in the West Midlands are also alert to risks, with 71% acknowledging increased cyber threats, just above the national figure of 70%, and 49% noting other emerging risks, compared to 48% nationally. These statistics reveal a region that approaches innovation thoughtfully and intentionally, investing in progress while preparing for potential challenges. The West Midlands is demonstrating how determination and forward-thinking can make innovation a central driver of future growth.
How innovation is powering a new era of talent acquisition recruitment
The West Midlands’ recruitment confidence reflects a region on the rise, with 52% of employers expressing assurance in their hiring efforts, surpassing the national average of 49%. The 22% figure for businesses reporting recruitment challenges, lower than the UK-wide 24%, indicates optimism underpinned by a focus on innovation, especially within the manufacturing and automotive sectors, where forward-thinking strategies are attracting fresh talent and driving competitiveness.
The region’s emphasis on new ideas and technologies is opening doors for skilled professionals and positioning the West Midlands as a leader in shaping the future workforce, demonstrating what’s possible when innovation is at the heart of recruitment success.
Use these insights as your starting point, join the conversation and help ensure the region’s next chapter is defined by growth and possibility – read the full report – KPMG Private Enterprise Barometer 2026.
Download the complete KPMG Private Enterprise Barometer 2026 to access in-depth analysis, practical strategies, and expert perspectives on the trends shaping the future of UK private businesses.
Read your copy now and be part of the conversation shaping the next chapter of UK private enterprise.
Our strategy and growth insights
Something went wrong
Oops!! Something went wrong, please try again
Get in touch
Discover why organisations across the UK trust KPMG to make the difference and how we can help you to do the same.