Practical barriers to delivery – from slow decision-making to gaps in infrastructure and skills – are limiting progress on productivity in Wales, according to business and public sector leaders.
At a roundtable hosted by Business News Wales and the Wales Productivity Forum, participants said that while there is broad agreement on the importance of productivity, translating that into action at firm and sector level remains a significant challenge.
A recurring theme was the impact of delays in decision-making across both the public and private sectors. Lengthy processes around contracts, planning and investment were described as slowing down activity and tying up resources, particularly for smaller firms.
This was seen not only as a policy issue but as a day-to-day operational constraint, with the pace at which decisions are made affecting how quickly businesses can invest, grow and respond to opportunities.
Alongside this, access to key enablers of growth – including business space, transport and digital connectivity – was identified as a limiting factor. Demand for suitable premises was said to be outstripping supply in some areas, while transport costs and availability continue to affect access to education, training and employment.
Digital infrastructure remains uneven, particularly in more rural parts of Wales, restricting the ability of businesses and individuals to fully participate in the economy, including through remote working.
Skills and workforce development were also highlighted as areas where delivery challenges persist. While demand for apprenticeships and training is strong, navigating funding systems and accessing support can be complex, particularly for SMEs. At the same time, employers are seeking more flexible and responsive provision, with shorter training pathways that better reflect business needs.
There was also a view that existing systems can create friction rather than support productivity. Inefficiencies within organisations – including duplicated processes and work that does not add value – were described as common, with opportunities to improve performance often linked to removing these barriers rather than introducing new initiatives.
In this context, management capability and leadership were identified as critical. As businesses grow, the shift from technical expertise to people management can expose gaps in skills, with implications for how effectively teams operate and how time and resources are used.
Technology, particularly artificial intelligence, was seen as offering potential to improve productivity, especially for smaller firms with limited resources. However, participants said realising these benefits will depend on how effectively businesses are supported to adopt and integrate new tools, alongside wider workforce development.
More broadly, participants pointed to the need for greater coordination in how support is delivered, with multiple programmes and funding streams sometimes operating in parallel without clear alignment. A more joined-up approach was seen as essential to reducing complexity and ensuring that businesses can access support more easily.
There was also emphasis on the importance of addressing practical constraints that affect participation in the workforce, including transport and access to training. These were described as immediate barriers that can limit the impact of wider policy interventions.
Participants said that improving productivity in Wales will depend not only on strategy and policy direction, but on the effectiveness and speed of delivery, with a focus on removing barriers, improving access to resources and supporting businesses to act.
