Business News Round Up (01/02/2024)
Manufacturing fourth highest sector for administrations in the UK
Manufacturing accounted for 11% of UK administrations in 2023, according to analysis by law firm Shakespeare Martineau. Of the 1,641 businesses that filed for administration, 186 came from the manufacturing industry – a 6% increase compared to 2022. Manufacturing was the fourth worst hit industry for administrations last year. Retail, manufacturing, hospitality, construction, and real estate together accounted for 59% of all administrations during the reported period. The past 12 months have been particularly hard on plant-based food and drink businesses, with a number of high-profile companies caught in the crossfire. Last month saw V-Bites enter into administration, while LoveSeitan closed its doors in August after failing to convince the public of Seitan’s benefits. Andy Taylor, partner, and head of restructuring at Shakespeare Martineau, said the uptick in companies filing for administration in 2023 underscored the challenges faced by businesses amid changing consumer habits, financial pressures, and geopolitical uncertainty.
Scottish businesses kick off 2024 with rise in confidence
Business confidence in Scotland rose 11 points during January to 42%, according to the latest Business Barometer from Bank of Scotland. Companies in Scotland reported higher confidence in their own trading prospects month-on-month, up 13 points to 57%. When taken alongside their optimism in the economy, up nine points to 27%, this gives a headline confidence reading of 42% (vs. 31% in December). Scottish businesses identified their top target areas for growth in the next six months as investing in their team (41%), evolving products and services (28%) and introducing new technology (27%). A net balance of 42% of Scottish firms also expect to increase staff levels over the next year, up 12 points on last month. The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.
City centre office take up improves with flurry of activity in late 2023
Liverpool city centre’s office market has demonstrated resilience throughout 2023, with a flurry of activity in the latter part of the year, according to a new report. Liverpool Office Agents Forum (LOAF) says the office take up in the city centre reached a total of 283,799 sq ft in 2023, reflecting the sustained growth and attractiveness of the locality. Figures show that take up doubled during the second half of the year, demonstrating that confidence returned to the market between July and December 2023. The final quarter of 2023 saw a number of significant transactions, including the lettings of Federation House (17,500 sq ft) to The LIPA Multi Academy Trust, 5 St Paul’s Square (9,452 sq ft) to Avalanche Studios Group, and 5 St Paul’s Square (8,921 sq ft) to Driscoll Kingston.
Scottish construction workloads fall, but surveyors more optimistic
Construction workloads in Scotland continue to fall through the last quarter of 2023, according to the Royal Institution of Chartered Surveyors (RICS); albeit at a slower rate than was seen in the previous survey. Surveyors also appeared to be more optimistic about the workload outlook for the year ahead. A net balance of -9% of respondents in Scotland reported that construction workloads fell through the fourth quarter, up from -21% that reported in the third. Looking at the sub-sectors, a net balance of -23% reported a fall in public housing, -8% in private housing, -10% in private commercial, -11% in private industrials, and -13% in other public works. Whilst the balances are still in negative territory, in most cases, they represent an improvement on the previous quarter. Workloads for infrastructure works were reported to have been flat.
https://www.insider.co.uk/news/scottish-construction-workloads-fall-surveyors-32009787