Firms optimistic about trading prospects and economy

WELSH business confidence surged to its highest level in eight months in March, according to the latest Business Barometer from Lloyds Bank.

Confidence among companies in Wales rose by 27 points to 51%, up from 24% in February. Optimism about their own trading prospects increased by 25 points to 56%, while confidence in the wider economy climbed by 27 points to 45%.

In addition, a net balance of 33% of Welsh firms said they expect to increase staff levels over the next year – a 13-point rise from the previous month.

Looking ahead, businesses in Wales cited their main priorities for the next six months as investing in their workforce through training (53%), investing in sustainability initiatives (34%), and evolving their product or service offerings (32%).

The Business Barometer, which has surveyed 1,200 businesses monthly since 2002, provides early indicators of regional and national economic trends. The data for March was collected between the 3rd and 17th of the month, ahead of the Chancellor’s Spring Statement.

UK-wide outlook

Across the UK, overall business confidence remained steady at 49%, unchanged from February.

While confidence in individual trading prospects held firm at 57%, optimism in the wider economy dipped by one point to 40%. The West Midlands and London were the most optimistic regions, both recording 62%, followed by the North West at 59%.

Sector insights

Retail was the standout sector in March, with confidence rising seven points to 58% – the highest level seen since the pandemic. The increase reflected positive expectations for trading conditions in the coming months.

Manufacturing saw the biggest drop in confidence, falling 12 points to 39%, as concerns over supply chain disruptions deepened. Confidence among construction firms slipped to 48%, while the services sector also saw a slight decline, down to 47%.

Lloyds: Businesses feeling brighter

Dave Atkinson, regional director for Wales at Lloyds Bank, said: “The changing of the seasons is also bringing a sunnier outlook for Welsh businesses.

“It’s particularly good to see firms so optimistic in their own prospects. As they look to capitalise on their confidence, we’ll be ready with our support to help them make the most of any opportunities ahead. This includes discounted lending to support investments in measures that improve environmental impact – something central to many Welsh firms’ growth plans.”

Hann-Ju Ho, Senior Economist at Lloyds Commercial Banking, added: “Business confidence remained steady this month, suggesting that UK companies may have been waiting to see the impact of government decisions at home and globally.

“Despite this, today’s data continues to reflect a positive growth trend in the UK economy. With confidence maintaining last month’s high, business leaders are optimistic, noting that investing in their development and workforce will position them well to seize future growth opportunities.”

Industry gears up for MEW2025 as policy, innovation and investment align

WALES is rapidly becoming a powerhouse in marine renewable energy, with the sector seeing a surge in momentum ahead of the UK’s largest dedicated marine energy conference, MEW2025, set to take place in Cardiff this May.

The two-day event at the All Nations Centre (May 7–8) will bring together over 400 delegates, including developers, investors, policymakers and innovators, all working to harness the power of tides, waves, and floating offshore wind.

Marine Energy Wales (MEW), the organisation behind the event, has confirmed a packed programme of speakers and panels. The First Minister of Wales, Eluned Morgan MS, will deliver a keynote address on Day One, signalling the Welsh Government’s commitment to driving forward the green energy transition.

Tidal power potential recognised

The Severn Estuary Commission has this month published final recommendations backing the feasibility of tidal range energy in the Severn. The report calls for immediate government support to develop the industry, establish a commercial demonstration project, and unlock private investment through a clear financial framework.

The report recommends a public sector-led Project Delivery Vehicle and improved regional management to ensure environmental and commercial viability.

Floating wind and tidal tech on the rise

MEW2025’s programme will explore the cutting edge of floating offshore wind, as well as new technologies in tidal stream energy. Sessions such as Turning the Tide: Scaling Tidal Energy in Wales Today and Floating Stepping Stones: Doing it for the Region will offer insights into commercialisation and scaling of Welsh marine renewables.

Research and development also remains central. Projects such as META (Marine Energy Test Area) in Pembrokeshire continue to break ground, with sessions at the conference reflecting key R&D milestones and practical deployments.

A new Marine Energy Engagement Toolkit was launched at the Senedd on March 18, spearheaded by Pembrokeshire Coastal Forum and supported by MSs including Sam Kurtz and Joyce Watson. The toolkit aims to empower communities across Pembrokeshire and beyond, ensuring that residents can meaningfully engage with the changes and opportunities brought by marine renewables.

Empowering communities

By providing accessible information and creating space for dialogue, the initiative hopes to bridge the gap between developers and the communities they affect.

Investment on the horizon

The Crown Estate Act 2025, which recently received Royal Assent, grants new powers to borrow and invest up to £1.5 billion over 15 years. This could be a game-changer for marine energy in Wales, enabling strategic investment in technology, infrastructure and supply chains.

With additional commissioners joining The Crown Estate Board, the focus will be on delivering environmental, social, and financial value – a shift welcomed by the sector.

Opportunities for Welsh industry

The Empower Cymru conference this month saw Net Zero Industry Wales outline its vision for a Welsh chapter of the UK Industrial Strategy. The plan positions Wales as a cornerstone of the UK’s clean energy future, citing a strong pipeline of value-for-money projects ready to deliver.

Meanwhile, Morlais, the tidal stream energy project off Anglesey, has been shortlisted for a prestigious Green Energy Award in the Net Zero Developer category – another sign of the sector’s growing national significance.

Final call for exhibitors and sponsors

With limited space remaining, MEW2025 organisers are urging businesses and organisations to secure their place. Exhibition packages include full branding opportunities, event passes and speaking slots for major sponsors. Artwork must be submitted by April 17.

Tickets are also still available for those looking to attend and connect with the growing network shaping the future of marine energy in Wales and across the UK.

Plastic tracking tech to trace 146,000 tonnes of waste in Wales

PEMBROKESHIRE is at the forefront of a new recycling initiative that could transform how waste is tracked and processed in Wales.

Polytag has successfully integrated Plastic Detection Units at four Welsh Material Recycling Facilities (MRFs) — including one in Pembrokeshire — as part of its Ecotrace Programme. The other new locations are in Conwy, Gwynedd, and Anglesey.

The technology, developed by Welsh firm Polytag, allows packaging to be scanned for invisible UV tags embedded in label artwork. This enables brands and retailers to pinpoint exactly when and where their plastic packaging is recycled, closing a major data gap in the recycling process.

Each year, the four Welsh MRFs handle a combined 146,000 tonnes of recyclable material. The new detection units are expected to significantly enhance efficiency, with the sites currently operating at an average recycling rate of 66.5%.

The Pembrokeshire installation was delivered in partnership with another Welsh company, EBS, and funded through a £100,000 grant from the Small Business Research Initiative (SBRI) Centre of Excellence, supported by the Welsh Government.

Alice Rackley, CEO of Polytag, said: “Wales is already a leader in recycling, currently holding the UK’s highest average recycling rate at a very impressive 66.5%. Installing these four new Plastic Detection Units across the country takes this success even further.

“It will generate invaluable data on what is being recycled and when, empowering brands to take full responsibility for their packaging. As a Welsh-owned business, it’s especially rewarding to see our technology embraced and to help drive progress toward a truly circular economy.”

The four new sites in Wales join Re-Gen’s MRF in Newry (Northern Ireland) and Biffa’s facilities in Edmonton and Teesside in using Polytag’s technology.

Kate Williams, Innovation Programme Manager at SBRI Centre of Excellence, said: “This initiative is a valuable step in improving recycling data in Wales. Installing advanced tracking technology to promote a circular economy within our recycling streams is essential. We’re excited to witness the impact this collaboration with Polytag will have on sustainability goals across the region.”

Polytag’s detection units scan and collect barcode-level data on individual products as they enter the recycling stream. This data can be used by brands to improve sustainability and by policymakers to shape greener waste strategies as Wales moves toward its net zero target by 2030.

For more information on Polytag’s work with regional and national brands, visit https://polytag.io.

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