North West mid-market businesses could generate around £1.1bn in additional annual economic output if key decisions were made more quickly - the largest regional opportunity outside London and the South East - according to new research from advisory firm FRP.

The research shows that faster decision-making could improve revenue outcomes for North West firms by 12%, above the UK average of 10% - underlining the potential value of acting more quickly and confidently when responding to major business or market changes.

The findings form part of FRP’s new Decision Economy report, a major new study delivered in partnership with research firm Development Economics to assess the importance of mid-sized businesses - those with between 50 and 499 employees - to the UK economy and how effectively they make decisions. It’s estimated that slow decision making is costing up to £13.7bn in growth across the UK mid-market – equivalent to around 0.6% of GDP.

North West mid-market firms in particular are a major force in the regional economy, generating more than £117bn in annual turnover and supporting around 538,000 jobs. It also points to a significant further growth opportunity, with it estimated that faster decision making has the potential to unlock around £1.1bn in additional annual economic output.

The biggest barriers preventing fast decision-making in the region are competing business priorities, cited by 36% of leaders, followed by the time required to gather information (32%) and uncertainty around government policy decisions (30%).

In response, businesses are investing heavily in the tools and capabilities needed to make faster, better-informed decisions. Some 46% have invested in training, 44% in IT including AI, and 40% in production technology such as advanced automation - significantly ahead of the UK averages of 28%, 38% and 28% respectively.

Daniel Brecker, Partner at FRP Corporate Finance, said: “The North West has all the ingredients to capitalise on faster decision-making. Its mid-market is already a major force in the regional economy, but what stands out is that firms are not waiting for conditions to improve - they are already investing in the ability to respond more quickly to change.

“This proactive mindset is one of the reasons the region has such significant growth potential. Looking ahead, the challenge is to turn that ambition into momentum and strengthen its position as one of the UK’s most important regional economies.”

FRP’s Decision Economy report examines the contribution of UK mid-market businesses and the impact of decision-making delays on growth, productivity and resilience. Read the full report here: The Decision Economy | FRP Advisory.