Alex McLeish's team visit The Hawthorns on Saturday, with new boys Alexander Hleb, Martin Jiranek, Jean Beausejour, Nikola Zigic and Matt Derbyshire all pushing for spots in the side.
Reid told the Birmingham Mail: "More and more Premier League clubs are getting major investment these days. No disrespect to Birmingham, but they've just brought in a player in Hleb who was playing for Barcelona and was at Arsenal before that.
"To get world-class players in shows how far the Premier League has come and where Birmingham are as a club, so they will pose a massive test for us.
"To have players of that ilk is good for Birmingham. It makes our job harder perhaps but we go into the game with confidence."