Salford business survey reveals bold plans for AI, R&D and innovation

New reports show confidence and innovation on the rise among Salford firms, even as national outlook remains cautious

Published on Friday 24 October, The Growth Company’s monthly Situation Report and the Greater Manchester Chamber of Commerce’s Quarterly Economic Survey highlight how firms across Greater Manchester are navigating challenging national conditions.

Despite broader concerns about stagnation in the UK economy, 34% of businesses in Salford reported a recent increase in investment, while 38% said they intend to increase spending on innovation in the near future.

The reports were presented jointly for the first time at an event held at Alliance Manchester Business School. The event brought together representatives from local government, business leaders and stakeholders to explore emerging trends across the region.

Rupert Greenhalgh, Head of Business Intelligence at The Growth Company, said: “Greater Manchester’s economy is remaining resilient against a backdrop of high inflation and low growth. We are seeing businesses being bullish with their investment in AI and more than one in three firms, 35 per cent, are looking to increase investment and R&D in future.”

The Growth Company’s Situation Report, based on 756 business responses between July and October, found that confidence across the region dipped slightly in September but remains consistent with recent years. Notably, Salford’s businesses appear more upbeat than average, particularly in the professional services sector.

The report also revealed:

• 54% of Salford businesses have cash reserves to cover more than six months

• 37% introduced new or improved services over the past year

• 31% invested in research and development

However, a quarter of Salford firms cited rising costs as a significant issue, particularly in sectors such as healthcare, green tech and construction.

Adoption of artificial intelligence also appears to be ahead of the national curve. While only 23% of UK firms currently use AI, the figure rises to 43% among businesses surveyed by The Growth Company. The report suggests this could translate into long-term productivity and growth for Greater Manchester.

The GM Chamber of Commerce’s QES, which feeds into the British Chamber of Commerce’s national research, echoed the sentiment of ‘anaemic’ but stable growth. Subrahmaniam Krishnan-Harihara, Deputy Director of Research & Information Systems at the Chamber, warned that growth pockets are too reliant on public sector support.

“In line with the national picture, economic activity is subdued,” he said. “We are not anticipating a long-term burst in fortune for the economy… this is a period of more anaemic growth.”

The Chamber’s data also noted that although recruitment levels remain stable, 46% of businesses admitted they lack the necessary in-house skills to fully meet operational needs. The highest demand was seen for advanced IT capabilities, technical roles and problem-solving skills.

Both reports stress the importance of strategic investment and innovation, with public and private sector collaboration seen as key to unlocking future growth.