Strong optimism but calls for action on skills and infrastructure

The 2025 Derry Chamber Business Sentiment Survey reveals a business community that is both confident in growth and cautious around challenges. While inflation, energy costs, and skills shortages remain major pressures, firms across all sectors are embracing digital transformation and sustainability as core growth strategies.

Across the Chamber membership, 73% of businesses expect to grow over the next 12 months, signalling continued optimism despite challenging conditions. Cost pressures including inflation, energy bills, and tax burdens are the most cited constraints, followed closely by skills shortages and infrastructure gaps such as poor broadband and transport links.

Technology and sustainability continue to define the region’s competitiveness. Three-quarters (75%) of firms are already using AI tools, and an exceptional 97% have or are developing sustainability strategies, showing that North West businesses are positioning themselves at the forefront of modern, green, and tech-enabled enterprise.

Sector insights highlight differing priorities:

  • Manufacturing firms report supply-chain and energy challenges but are investing in automation and innovation to expand markets.
  • Professional and tech services show strong growth confidence, driven by digital adoption and demand for skilled workers.
  • Retail and tourism sectors continue to face cost and infrastructure constraints but see opportunities through regeneration projects and local sustainability trends.
  • Tech and creative industries remain the most upbeat, citing expansion in AI, data, and digital media as key growth drivers.

A regional SWOT analysis from the sentiment survey shows that the North West’s strengths lie in innovation, sustainability, and cross-sector collaboration, but weaknesses in infrastructure and workforce readiness persist. The biggest opportunities centre on the City Deal, green transition, and digital transformation, while threats include global volatility and underinvestment in key local assets.

Overall, North West businesses are adapting quickly to change leveraging technology and sustainability while calling for improvements in infrastructure, skills development, and cost competitiveness to maintain momentum.