Business News Round Up (01/09/2022)
UK manufacturing output falls for first time since Feb 2021
UK manufacturing output fell for the first time since February 2021 in the three months to August, with no growth expected in the three months ahead. That’s according to the latest monthly Industrial Trends Survey from the CBI and Accenture. Manufacturers also reported order books falling below “normal” levels, and expectations for selling price inflation picking up. The survey, based on responses from 257 manufacturers, found that Manufacturing output volumes fell in the three months to August marking the first time since February 2021 that output has declined. Output is expected to be broadly flat in the next three months, making a significant worsening of expectations from just a few months ago. Output increased in 10 out of 17 sectors in the three months to August. The fall in headline growth reported this quarter was largely driven by food, drink & tobacco, mechanical engineering and paper, printing & media. Total order books were reported as below “normal” for the first time since April 2021. Export orders were also seen as below par, to the same extent as last month.
Scotland’s largest data centre expands further with £8m investment
Scotland’s largest data centre is expanding its footprint with an £8m investment to meet growing demand for cloud services. Data Vita’s flagship Fortis facility in Chapelhall, Airdrie, is adding 400 racks to the site, increasing its technical space by up to 1,500 square metres. The development will allow the company, part of the commercial property HFD Group, to expand even further in the future to provide an extra 3,000 square metres of space. Combined with plans to deliver Scotland’s first ‘metro data centre’ at 177 Bothwell Street in Glasgow, the company is delivering an additional 550 racks of capacity in central Scotland. Danny Quinn, MD of DataVita, said: “The expansion of Fortis is part of our long-term plan for the facility and underlines our commitment to providing the best and most energy efficient data services to private, public, and third sector organisations across Scotland. Sustainability is high on the agenda for IT and that has only become even more the case with energy price increases and the recent hot weather. Many companies are now no longer able to accept the cost of running their own data centre services, and the steps we have already taken to use renewable energy and make our facility as efficient as possible has driven more interest in our offering. The additional capacity at Fortis will ensure we can support more organisations with their IT infrastructure, along with our own growth and plans to make the facility even more efficient in the future.”
NatWest ordered to refund SMEs for ‘bundling’
NatWest Group, trading as Royal Bank of Scotland north of the border, is refunding £600,000 to more than 700 smaller businesses after it broke competition rules by forcing them to open fee-paying accounts to take out loans. The Competition and Markets Authority (CMA) described the behaviour as unacceptable while the bank said it was a “technical issue”. NatWest was found to have forced small business customers applying for loans to open higher cost accounts instead of allowing them to have fee-free feeder accounts. A number of banks have been criticised by the watchdog for the practice known as “bundling”, which is against industry rules. HSBC is refunding about £800,000 to small business customers after it breached rules, while Lloyds Banking Group, Clydesdale – owned by Virgin Money – and Danske Bank have faced similar reprimands. The NatWest breach occurred from November 2016 to March 2020, and it informed the regulator of the violation in January last year. The bank will now reimburse the 702 customers for the fees they were charged during the period and has been ordered by the regulator to hire an independent auditor to review its compliance with the rules.
Institute of Directors Scotland names new national director
The Institute of Directors (IoD) has named Catherine McWilliam as the new director of nations in Scotland. She has a decade of experience working in the Scottish business and third sectors, including roles responsible for corporate communications, membership management and professional development. McWilliam joined the IoD team in October 2021 as a senior branch manager and has been appointed as director of nations following a competitive recruitment process, following the departure of Louise Macdonald OBE, who was appointed director general of the Scottish economy in April. Prior to joining the IoD, she worked for six years at the Development Trusts Association Scotland, and before that was an account executive at Orbit Communications. Jonathan Geldart, director general of the IoD, said: “Catherine brilliantly reflects the tenacity of leaders in Scotland, who have been working through one crisis after another over the last three years. Skills shortages, recruitment challenges and energy costs are all priorities for leaders right now, and Catherine is well placed to provide practical support and suggest innovative solutions to help assuage these concerns, or even simply to connect leaders with others experiencing the same issues. She will ensure we keep pace with industry, technology, and a changing workforce, and build a more diverse membership portfolio which is truly relevant for the world we live in now.”
https://www.insider.co.uk/appointments/institute-directors-scotland-names-new-27875247