Telford & Wrekin businesses defy trend
While many businesses across the Midlands are grappling with increasing financial challenges, companies in Telford & Wrekin are showing remarkable resilience. The latest ‘Red Flag Alert’ from Begbies Traynor reveals a positive trend for the borough, bucking the regional and national pattern of rising distress.
Local Success Amidst Wider Struggle
The second quarter of 2025 saw a noticeable decrease in ‘significant’ distress for businesses in Telford & Wrekin, with numbers falling by 2.8% to 1,088 compared to Q2 2024. This contrasts sharply with the broader Shropshire area, which experienced a 2.5% increase in distressed businesses, reaching 3,764. Nearby Shrewsbury saw a significant rise of 20.6%, and Bridgnorth was up by 6.4%. Ludlow also showed a decline in distress, dropping by 11.9%.
Across the wider Midlands, the picture is less optimistic, with over 80,000 companies now classified as being in ‘significant’ economic distress – a 7.6% year-on-year increase. Nationally, the situation is even more pronounced, with 666,876 businesses in significant distress, a 10.8% increase from the previous year. Counties such as Leicestershire (+13.3%), Northamptonshire (+11.5%), and Herefordshire (+15.5%) all reported substantial increases.
Local Industries Show Strength
Several industries in Telford & Wrekin and the wider Shropshire area have demonstrated notable stability. While sectors like Real Estate and Construction faced challenges elsewhere in Shropshire, there were positive shifts in Automotive (-4.1%), Telecommunications and Information Technology (-20.2%), and Support Services (-5.7%), indicating a diverse and adaptable local economy.
Nick West, Partner at Begbies Traynor, commented on the figures: “In this climate, businesses are finding it difficult to get a steady footing, confront and overcome an array of challenges including low consumer confidence, rising taxes and global economic changes. The impact of these factors is reflected in the increased numbers of significantly distressed businesses across Shropshire.”
He added, “There are very talented leaders guiding promising businesses in Shropshire. As with any business, good leadership and sound guidance is vital and can always lead to opportunities again. We are already seeing that some areas are showing resilience with small reductions in distressed businesses.”
This positive performance in Telford & Wrekin offers a beacon of hope amid a challenging economic climate, highlighting the strength and adaptability of businesses within the borough.
