What will be some of the key business trends affecting organisations in Wales during 2024?

At Talk training we wanted to look forward into 2024 and write a summary of our thoughts on the various business trends that are likely to impact organisations and us as individuals living in Wales.

We have broken them down into six key headings and have outlined the impact. Do you agree with our summary and what else should be included? We would love to hear your thoughts.

Digital Transformation:

The acceleration of digital transformation is a global trend, and organisations in Wales are likely to continue the adoption of technologies such as cloud computing, cybersecurity, data analytics, and artificial intelligence (AI) to enhance efficiency and competitiveness. The rapid development of AI in 2023 with ChatGBT, Bard, Microsoft and others, has been transformative and the exponential growth of this sector looks like it is only just starting.

Remote Work and Hybrid Models:

The experience of the COVID-19 pandemic has led to a reevaluation of work structures for organisations and individuals. We see this trend continuing. Organisations are increasingly embracing remote work and hybrid models to accommodate changing expectations and enhance work-life balance of staff. This in turn has an impact on the commercial property sector as many companies downsize premises. Furthermore these changes cascade on to the hospitality and service sector such as coffee shops that service office workers.

Sustainability and Green Practices:

There is a growing emphasis globally and particularly in Wales on sustainability and environmentally friendly practices across industries. The Welsh Government has outlined its Net Zero Plan and businesses in Wales will focus on adopting eco-friendly initiatives, reducing carbon footprints, and promoting sustainable supply chains.

Innovation, Skills Development and Apprenticeships:

The emphasis on skills development remains crucial. Apprenticeships and other ongoing training programs are integral to addressing skills gaps and ensuring a skilled workforce in Wales that is adaptable to the changing needs of employers. Rapid changes in the business environment such as AI, as highlighted already, require organisations and their staff to be innovative and adaptable. The ability to embrace change and innovation is a cultural shift that will ensure long-term sustainability.

E-commerce and Digital Marketing:

E-commerce and the importance of digital marketing have been vitally important for several years. This landscape is constantly changing with the advent of new apps, social media platforms and constant software iterations. We expect businesses in Wales will continue to focus on strengthening their online presence, optimising digital marketing strategies, and expanding e-commerce capabilities.

Flexible Supply Chains:

The pandemic highlighted vulnerabilities in global supply chains. The conflict in Ukraine and other countries has exacerbated these issues and of course the impact of Brexit on Welsh businesses due to the UK’s exit from the European Union will continue to have an impact in 2024. Organisations will need to adapt to new trade partners, new trading rules, regulations, and may face challenges in accessing European markets.
All of the above have been contributing factors to the increased prices of many goods and services in 2023 and during 2024 organisations are likely to monitor and reevaluate their supply chain strategies, with an emphasis on flexibility, resilience, and localisation.

In summary, at Talk training we believe that the above trends will impact organisations in Wales during 2024. This list could have included many other factors and we couldn’t end this article without mentioning what we see as two additional crosscutting factors.

The ongoing cost of living crisis.

The rising cost of food, energy, and other essentials is putting a strain on households and businesses in Wales. This is likely to have a knock-on effect on the economy, as consumers cut back on spending.

The changing political landscape.

Closely linked with the paragraph above, there is the potential for political change in the UK and Wales with a UK election likely in 2024 (28th Jan 2025 latest). Additionally in Wales, Mark Drakeford recently stepped down as first Minister for Wales after 5 years in the role. Both of these factors might lead to changes in government policy that could impact all of the above.

Overall, we hope that this summary is a good starting point for a discussion about the current and future trends that are likely to shape the Welsh business  landscape in 2024 and the years to come.