Investing in skills and productivity champions ‘key to Wales’ economic growth’
Investing in skills and productivity champions ‘key to Wales’ economic growth’
Strategic investment in skills and support for a new generation of productivity champions could unlock significant economic growth in Wales, according to business leaders, policymakers, and experts who gathered this week at a high-profile economic briefing.
Hosted by the Federation of Small Businesses (FSB), the Development Bank of Wales, and Economic Intelligence Wales, the second in a series of joint events tackled the urgent productivity challenges facing Welsh businesses. With a particular focus on closing skills gaps, the discussion centred on empowering small and medium-sized enterprises (SMEs) to drive sustainable growth.
The event was chaired by John Hurst, recently appointed Policy Chair for FSB Wales, and featured opening remarks from Rhian Elston, Investment Director for the Development Bank of Wales.
“If we are serious about bridging the productivity gap, investing in skills must be a top priority,” said Elston. “Increasing productivity isn’t just about improving efficiency—it’s about equipping businesses with the tools, funding, and talent to grow, innovate, and build a thriving Welsh economy.”
A panel discussion featuring Jane Wallace-Jones, CEO of Swansea-based Something Different Wholesale; Dr. Ali Wright, Founder of Ceredigion’s Needle Rock; and Professor Stephen Roper, Director of the Enterprise Research Centre, explored how targeted investment in skills and innovation could redefine the productivity landscape in Wales.
Professor Roper, referencing two forthcoming Economic Intelligence Wales reports on ‘productivity heroes’ and investment, highlighted the role of business leadership in unlocking higher economic output. He also emphasized the importance of workforce wellbeing as a fundamental driver of productivity.
“Businesses that innovate, upskill their people, and create quality jobs are essential to narrowing the productivity gap between Wales and the wider UK,” said Roper. “Addressing mental health and broader workplace challenges is just as important as technical training.”
The briefing also covered actionable recommendations for enhancing productivity, including better alignment between educational qualifications and business needs, scaling research and development (R&D), improving infrastructure, and expanding access to business support services.
Elston underscored the Development Bank of Wales’ commitment to a tailored approach: “Productivity is not a one-size-fits-all issue. It requires patient capital, strategic support, and a focus on people and skills. Collaboration across business, education, government, and finance will be key to building a resilient and dynamic Welsh economy.”
Ben Cottam, Head of FSB Wales, reinforced the need for systemic action: “Productivity in Wales is a multifaceted issue. It’s about more than just outputs—it’s about tapping into the untapped potential of our workforce. Every business needs the right people with the right skills. When we achieve that, we unlock innovation, job creation, and long-term prosperity.”
The event, part of a broader initiative by Economic Intelligence Wales, aims to generate data-driven insights to inform policy and business strategy. The upcoming reports are expected to provide critical guidance on how Wales can champion productivity to drive its economic future.
