Every month, Boost; Lancashire’s Growth Hub, works with private sector partners, local authorities, business groups and universities to gather intelligence on the health of the Lancashire business community.
Alongside 40 UK Growth Hubs, this intelligence informs a national report shared with government, and the wider Lancashire business support community.
The Lancashire Growth Hub Pulse, written by Andrew Leeming, programme manager at Boost, distils Lancashire’s findings into a monthly snapshot. The Pulse is a litmus test of our current collective thinking, while celebrating successes, flagging concerns and highlighting the opportunities and challenges that matter most to Lancashire’s businesses.
Here are February’s key takeaways:
1. Leadership pressure is becoming a real issue
One of the most consistent themes this month has been leadership strain within SMEs. Many owner-managers describe being stretched between strategic decision-making and day-to-day operations.
The issue is rarely lack of ambition or opportunity; it is having the mental space to execute. Peer networks and mentoring environments are increasingly valued as spaces where leaders can step back, share pain points and regain perspective.
2. Preston recognised among the UK’s most productive cities
The Centre for Cities Outlook 2026 placed the Preston and central Lancashire area, including South Ribble and Chorley, in the top 20 cities in the UK for output and productivity. Notably, the area was ranked ahead of both Manchester and Liverpool in the latest assessment of economic performance.
The annual report measures cities against indicators including innovation, employment, housing, skills and productivity, reinforcing Preston’s growth reputation as a strong Northern economic centre.
3. Businesses preparing for the April cost crunch
Across Lancashire, businesses are already preparing for increases in National Insurance, wages, energy and insurance costs expected in April. Many SMEs are reviewing pricing, delaying recruitment and prioritising operational efficiency.
Research from the Federation of Small Businesses underlines the pressure: 35% of small firms say they may scale back over the next year, rising to 45% in hospitality.
4. Blackburn firm expands across Europe.
Blackburn-based, EG On The Move, has agreed a deal to acquire 260 sites in France from EG Group. The move represents a major expansion into the European market and highlights the company’s ambition to grow beyond the UK. It also reflects the continuing evolution of the EG Group founded by the Issa brothers. For Lancashire, it is another example of a red rose business expanding internationally.
5. Growth ambition remains but investment is cautious
Businesses across the county continue to show ambition but investment decisions are becoming hyper selective. Rather than pursuing rapid expansion, many leaders are focussing on protecting margins, strengthening cashflow and improving operational efficiency. Even though in many cases sales pipelines are healthy, board-level approvals are taking longer and purchasing decisions are being scrutinised more closely.
6. Buckhurst Plant Hire invests for national growth
Rossendale-based Buckhurst Plant Hire has secured an eight-figure funding package form HSBC to expand its specialist utilities division.
The company plans to relocate to a new nine-acre headquarters in Rossendale and expects to increase turnover by around 25% over the next two years. The investment reflects strong infrastructure demand and highlights how Lancashire firms continue to grow nationally.
7. Skills shortages holding back growth
Recruitment challenges remain widespread. In particular, construction firms report ongoing shortages in trades such as bricklaying and plastering, while manufacturers continue to struggle to recruit technicians and mid-level managers. Employers are also highlighting concerns around job readiness among new entrants to the workforce.
8. Northern Trust proposes new commercial space for Morecambe
Northern Trust has submitted plans for a new commercial development in Morecambe, designed to create modern workspace for growing SMEs. The scheme aims to attract new investment, support local employment and strengthen the towns wider efforts to regenerate the area and support business growth.
9. AI adoption is accelerating across SMEs.
Artificial intelligence is rapidly moving from curiosity to practical application. Businesses are using AI for market research, marketing content, competitor analysis and operational efficiency. The focus is increasingly pragmatic, improving productivity and reducing costs rather than experimentation. This shift is particularly visible among startups and micro businesses.
10. Aerospace strength continues to fuel the Lancashire economy
BAE Systems reported record results for 2025, with revenue reaching £23.3bn and operating profit rising to £2.9bn. Across Lancashire sites, the company hired more than 1,200 employees and invested £460,000 into community projects, reinforcing the sector’s importance to the county. Strong global demand and defence capabilities continues to support the wider supply chain.
11. Regeneration is lifting local confidence
Regeneration activity continues to strengthen business confidence in several parts of Lancashire. Investment in city centres, infrastructure and cultural assets is improving perceptions of place and helping to attract new visitors, residents and businesses. For many SMEs, regeneration acts as a confidence signal, even before direct economic impact becomes visible.
12. Burnley business leaders fly the flag for Lancashire in Westminster
Around 40 Burnley business leaders travelled to Westminster with the Burnley Bondholders network to meet ministers and MPs, highlighting the town’s strengths in advanced manufacturing, engineering and digital innovation. The visit aimed to showcase local business success and reinforce Burnley’s role as one of the UK’s most manufacturing-intensive economies.
13. Startup activity remains steady
Entrepreneurial activity continues despite economic caution. Boost handled 121 enquiries during February, including founders exploring new ventures in hospitality, consultancy, health services and specialist retail. Our Business Support Helpdesk team are also reporting that those contemplating starting a business are taking longer to validate ideas, reflecting a more disciplined approach to risk.
14. Digital adoption is transforming manufacturing
Blackpool-based AFD Systems has accelerated its digital transformation after securing a £20,000 Made Smarter grant. The company has further invested in advanced 3D scanning technology, allowing high-precision digital workflows, which has significantly improved manufacturing processes. The company recently announced a rebrand from Airframe Designs to AFD Systems to reflect its evolving sector capability.
15. Investment in apprenticeships remains vital
Businesses continue to emphasise the importance of apprenticeships in building future capability. For many firms, apprenticeships remain the most effective route to developing technical skills and maintaining long-term workforce resilience.
16. A century of apprenticeships celebrated
Darwen manufacturer, Ritherdon & Co, recently marked 100 years since welcoming its first apprentice in 1926. The fourth-generation family business continues to invest heavily in training through partnerships with Runshaw College, Training 2000 and Made Smarter programmes. Its long-standing commitment to apprenticeships highlights the role Lancashire manufacturers play in developing future talent.
17. Retail and hospitality remain under pressure
High Street and hospitality businesses continue to face challenging trading conditions. Rising costs, cautious consumer spending and operational pressures are forcing some difficult decisions across the sector.
18. Lancashire dealership recognised for national performance
Dales Subaru in Kelbrook has been named Subaru UK Retailer of the Year 2025, after exceeding sales targets and growing its market share. The family-run dealership was recognised for outstanding customer service, strong parts performance and its commitment to the Subaru brand across the North West.
19. Innovation and sustainability remain priorities
Many Lancashire businesses are continuing to invest in sustainability, technology and innovation. These investments are seen as central to efficiency improvements, resilience and long-term competitiveness.
20. Lancashire manufacturer recognised for responsible growth
Chorley-based personal care manufacturer and Boost alumni, Group55, has achieved Certified B Corporation status, recognising high standards in social and environmental performance. The company recently expanded into a refurbished eight-acre site with a £1.8m solar installation, more than doubling production capacity while strengthening its sustainability credentials.
Boost is Lancashire’s business support organisation. We’re here to help.
February’s intelligence highlights a Lancashire business community that is pragmatic, resilient and focused on long-term sustainability. It also highlights a community that continues to evolve, adapt and seek advice and support.
But navigating the growing landscape of business support can be challenging. From private sector advisers and university programmes to local authority initiatives and national schemes, the range of support available is extensive – and growing.
That’s where Boost comes in.
Boost is a funded service designed to help Lancashire businesses find and access the right support. Our website features a comprehensive Business Support Finder, alongside a dedicated Business Support Help Desk ready to guide you.
Whatever direction your business is heading, we can help you find the support to get there.
To find out more or speak to someone, visit:
👉 www.boostbusinesslancashire.co.uk
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