OPINION - Resilience remains the hallmark of Lancashire business

The banking crash, Brexit, the pandemic, Russia’s invasion of Ukraine. We can now add to these the USA’s war with Iran when it comes to the lengthening list of global events that have taken their toll on Lancashire businesses.

Add to them domestic issues, such as the impact of National Insurance hikes on
firms, and you could be forgiven for thinking Lancashire’s economic fortunes are at the mercy of headwinds and storms that it and its business community have little protection from.

Take energy costs, where the pressure is really mounting as a result of the actions of the administration in the White House. Then there is the spectre of rising inflation, again pumped up by happenings far away in The Gulf.

The squeeze is on and it is being felt by Lancashire businesses in sectors that range from agriculture to logistics and hospitality, which, as we reported in our last issue, is very much up against it.

In that edition we spoke of the need for more support for that sector from the government, warning that resilience can only be stretched so far.

The situation, it seems, is not improving.

A survey carried out by industry bodies UKHospitality, the British Beer and Pub Association, the British Institute of Innkeeping and Hospitality Ulster has revealed the damaging impact another year of significant cost increases will have on their members.

They say that as a direct result of April cost increases, 64 per cent of businesses will cut jobs and 51 per cent will cancel investment plans.

Around one in seven venues will be forced to close.

The increasing cost of energy is also a significant concern. Even when surveyed before the situation in Iran and the Middle East, almost all the businesses quizzed revealed energy costs were impacting profitability.

The Federation of Small Businesses has also had its say, warning the outlook for small business growth is ‘bleak’ and calling on the government to keep an open mind about creating targeted business support for those most in need if the Middle East crisis continues to escalate.

However, while they may be up against it on many fronts and subject to matters over which they have no control, Lancashire businesses remain determined to act on those things that are in their control.

Our Lancashire AI and Cybersecurity Summit, which we report on in this issue, heard from a range of businesses how they were harnessing the power of technology to drive productivity and move their operations forward at pace.

They remain positive and determined to be at the cutting edge of this revolution.

And when it comes to the subject of energy costs and security – efficiency and sustainability have moved high up the agenda in business boardrooms across Lancashire.

As we reveal in our Net Zero feature, in 2026 energy isn’t just something managed in the background.

It’s becoming a key part of how competitive and resilient our businesses are.

And on one final positive note, our Red Rose Award finalists and winners this year once again offered great examples of how Lancashire businesses are working every day to overcome challenges and become even better versions of themselves.

We continue to be amazed by their efforts and the positive attitude these great businesses and their teams bring to each working day. Take a look at this year’s roll of honour on page 65 and we’re sure you will be too.