Lancashire Growth Hub Pulse | June 2026

Lancashire’s wins and worries: what June told us about business confidence

The Lancashire Growth Hub Pulse, written by Andrew Leeming, programme manager at Boost, is a summary of monthly intelligence gathered by the Growth Hub from private sector partners, local authorities, business support providers and universities. 

Alongside 40 UK Growth Hubs, this intelligence informs a national report shared with government and the wider Lancashire business support community.

Our June Pulse balances opportunities and challenges, highlighting ten Lancashire wins and ten Lancashire worries. 

10 Lancashire wins

1 | Regeneration is continuing to build confidence

Regeneration remains one of Lancashire’s strongest confidence signals. In Morecambe, Eden Project Morecambe reached a major milestone, with groundworks due to begin in August and the wider project on track to open in winter 2028. In Preston, work on the transformation of Friargate South, Cheapside, Market Place and Orchard Street is beginning in July. These schemes create confidence in local areas, and the wider Lancashire economy. 

2 | Lancashire manufacturers are still winning work

Lancashire’s advanced manufacturing base continues to show its strength. Preston-based LARS has secured the largest contract in its history, supplying and installing a hybrid communications tower for NATS on Snaefell. Blackpool-based Force Technology has secured a contract to supply valve springs for Cosworth’s next generation of hypercar engines. Darwen-based WEC Group has grown its workforce from around 900 to more than 1,100 employees over the past year.

3 | Leading Lancastrians recognised in King’s Birthday Honours 

Several Lancashire business, education and civic leaders were recognised in the King’s Birthday Honours. They included Burnley entrepreneur Dave Fishwick, founder of Bank of Dave, who received an OBE for services to finance, business and charity; Professor Graham Baldwin, Vice-Chancellor of the University of Lancashire, who was awarded an OBE for services to higher education; and Alan Cavill, who received an MBE for his role in Blackpool’s £2bn regeneration programme.

Lancaster-based Jonathan Lutwyche, chief executive of Yordas Group, was also awarded an OBE for services to sustainable chemicals management, economic growth and international trade, while Preston’s Dr Karen Whittaker received an MBE for her contribution to health visiting, education and research over a 38-year career. A huge congratulations to you all.

4 | North West manufacturers remain optimistic 

Despite ongoing pressures, North West manufacturers appear more optimistic than many might expect. MHA’s Manufacturing Report 2026 found that 90 per cent of North West manufacturers expect growth of more than three per cent over the next 12 months, with more than half forecasting growth above five per cent. In response to challenges around costs, skills and supply chains, many manufacturers are responding by improving productivity, investing selectively and looking for ways to strengthen competitiveness.

5 | Lancashire businesses are investing  

Rossendale-based Melba Swintex is set to open a new 57,742 sq ft distribution centre following a multi-million-pound investment.

The third-generation family-owned manufacturer, which employs around 230 people in Lancashire, has grown into one of the UK’s leading manufacturers of temporary traffic management products and exports globally. The new facility will support rising demand, improve efficiency and strengthen the company’s ability to serve customers across the UK and overseas. It is a good example of a Lancashire business investing for growth despite cost and trading pressures.

6 | Export and international opportunities are emerging  

Lancashire businesses are continuing to look beyond local and national markets. One innovative manufacturing business has received interest from an international government organisation for a livestock welfare system designed to reduce cattle lameness. There are also wider trade opportunities on the horizon, including the UK-India Free Trade Agreement and CPTPP provisions with Mexico. 

7 | Start-up appetite remains

The Boost Helpdesk continues to receive enquiries from a wide range of start-up and early-stage businesses, from a dance academy, pottery studio and advanced engineering business to a drone business, gym app and braille music venture. This variety shows that entrepreneurial energy remains alive across the county, even in a cautious economy.

8 | Local networks are bringing people together

Relationships have always powered our economy, and we continue to see a range of initiatives, including business networks, peer groups, local authority initiatives, sector forums and support programmes that bring people together. The Skelmersdale Ambassadors Network recently held a successful netwalking event, while Fhunded delivered a well-attended Fhunded x Northern Reach event in Burnley. If you want to find out about business events and networks across Lancashire, have a look at Boost’s dedicated website events section. 

9 | Lancashire businesses achieve national recognition

A number of Lancashire businesses are making headlines for growth and recognition. Burscough-based MCS Group has been named one of the world’s leading managed service providers after achieving 79th place in the 2026 MSP 501 rankings. Loom Loft has been recognised in the FEBE Growth 100 list. Chorley-based Panache Cruises has exceeded £50m turnover, while Accrington-based CAPO and Preston-based Car.co.uk have both appeared in the Sunday Times 100.

10 | Businesses are still finding support 

The Boost Helpdesk dealt with more than 102 enquiries during the month, with 83 per cent coming from businesses that were new to Boost. Wholesale and retail remained the biggest sector getting in touch, followed by professional services and manufacturing. Finance remains a big challenge, but businesses were also asking about events, workshops, mentoring and national programmes across Lancashire.

10 Lancashire worries

1 | Cost pressures remain persistent 

Rising costs remain one of the biggest concerns for Lancashire businesses. Partners continue to report worries around wages, National Insurance, energy, business rates and rise in general overheads. Many SMEs feel there is a cumulative impact of several pressures at once. Rosebud reported one client facing a four-fold increase in electricity costs after coming off a fixed deal, underlining the scale of pressure still facing some firms.

2 | Recruitment remains difficult  

Skills shortages continue across construction, engineering, manufacturing, digital and leadership roles. Smaller SMEs are frustrated when larger businesses recruit staff they have trained but can no longer afford to retain. Employment costs are also affecting hiring confidence. The North and Western Lancashire Chamber of Commerce reported that around 80 per cent of employers expect employment costs to rise, while 37 per cent plan to reduce hiring activity.

3 | Leaders becoming increasingly stretched 

A recurring theme from peer-to-peer insight is leadership capacity. Business owners and directors are being pulled between operations, sales, people issues, finance, customer relationships and strategy. This is impacting management’s ability to pursue and maximise opportunities. 

4 | Cashflow remains tight 

Longer sales cycles, delayed project starts, extended payment terms and more cautious procurement are creating uncertainty around timing and pressure on cashflow. 

This is not just a local issue. National research from the Small Business Commissioner estimates that more than 1.5 million businesses are affected by late payments each year, with £26bn owed in late payments at any given time. That equates to an average of £17,000 per affected business. For Lancashire SMEs, cash flow issues put pressure on working capital and makes it harder to plan ahead with confidence.

5 | EV transition targets are creating pressure

The automotive transition continues to create both opportunity and uncertainty. UK battery electric vehicles reached a 27.3 per cent market share in May, their highest level of 2026, with registrations up 34.2 per cent.However, year-to-date battery electric vehicles share remains at 23.9 per cent, below the 33 per cent zero-emission vehicle mandate requirement. The gap is even larger in electric vans, where market share is 9.8 per cent against a 24 per cent mandate target.

6 | Steel quota changes are creating concern  

New steel import quota arrangements are causing concern among manufacturers, engineering businesses and supply chains that rely on imported steel products. The final arrangements include a 51 per cent reduction in tariff-free steel import quotas, while imports exceeding quota thresholds will be subject to a 50 per cent tariff, up from 25 per cent. For some manufacturers, this could increase costs and weaken competitiveness.

7 | Pressures recruiting young people  

In Burnley, feedback referenced the rising cost of entry-level employment, with a 40-hour week now equating to around £27,000 at minimum wage levels. Some employers are questioning whether they can justify taking on new starters without more support. There are also continuing concerns about the lack of meaningful work experience opportunities for 16 to 24-year-olds.

8 | International traders want more support  

Some manufacturers feel the current DBT support model is less effective than previous models, craving a return to more in-person and site visits. One manufacturer is preparing to spend upwards of £40,000 exhibiting at a packaging equipment trade show in Chicago. The business exports 75 per cent of sales to the US, EU and Middle East, but feels the previous grant support is now sorely missed.

9 | More caution in the startup community? 

While June’s 1,147 new business registrations should be celebrated, the figure is down from 1,211 in 2025. These figures don’t tell the whole story but there are important signals when looking at the overall health of Lancashire’s business base.

10 | Businesses vulnerable to funding shifts

Some businesses remain exposed to changes in government funding and public policy. Cube Thinking reported that businesses linked to the eco and retrofit sector are still feeling the impact of funding changes, with some looking to pivot into adjacent sectors. 

Boost is Lancashire’s business support service. We’re here to help. 

In a month where we looked at wins and worries in equal measure, we have seen a dichotomy of stories from businesses investing for growth and entrepreneurs starting up, to recruitment challenges and some businesses experiencing severe trading difficulties. 

That means the role of business support remains vital. Running a business is a journey and, no matter what stage you are at, there is support available. Our funded service is designed to help Lancashire businesses find and access the right support. 

The Boost website features a comprehensive Business Support Finder, a dedicated Business Support Helpdesk, the latest events from across Lancashire, and useful insights to help business owners move forward.

If you are new to Boost, visit our website to find out more. If you are already familiar with Boost, keep checking our website for fresh content and information on new support.

Thank you for reading.

👉 www.boostbusinesslancashire.co.uk