Business News Round Up (02/11/2023)
See more of the latest trends and top business news.
Scottish GDP down 0.3% during second quarter
Gross domestic product (GDP) in Scotland dropped by 0.3% in the second quarter of this year. The Scottish Government statistics revealed the drop between April and June, compared to growth of 0.2% in the previous quarter. They also show an estimated 0.1% increase in August, which followed a 0.2% rise in July. Output dropped 0.1% in the second quarter, with the production sector declining 1.9%. This was offset somewhat by 0.8% growth in the construction sector. In 2022, GDP grew by 5.2%, compared to 9.2% in 2021 and a pandemic-induced fall of 12% in 2020. Last year, GDP per head – excluding North Sea oil revenue – in Scotland sat at £34,457, and £38,622 per person when oil and gas was included. The household saving ratio – a measure which calculates both the amount households do not spend on consumption and their equity in pensions funds – rose from 4.5% during the same quarter last year to 4.9%.
https://www.insider.co.uk/news/scottish-gdp-down-03-during-31334759
Number of North West firms in ‘significant’ financial distress rises
The number of North West firms operating on the brink is now close to50,000, according to new data released today by Begbies Traynor, as business challenges mount up for SMEs. In the third quarter of 2023, the number of firms in the North West operating in ‘significant’ financial distress was 49,856 according to the research. This is a year-on-year increase of 7.43 per cent (up from 46,408) and a quarterly jump of 9.38 per cent (up from 45,579). This latest data is sourced from the Begbies Traynor Red Flag dataset which tracks key factors behind company distress and failure rates. ‘Significant distress’ refers to businesses showing deterioration in key financial ratios and indicators including those measuring working capital, contingent liabilities, retained profits and net worth. The professional services sector in the North West region saw a remarkable leap in distress of almost 30 per cent (29.49 per cent) as advisory firms feel the effects of distress in other sectors of the regional economy. The largest volume of distressed businesses are found in a trio of key economic sector hubs in the North West region: construction, real estate and support services which, together, make up 41 per cent of the total (20,523) number of significantly distressed firms.
Connected and automated mobility tech to boost UK economy
The UK’s rollout of connected and automated mobility (CAM) technology could provide an annual economic benefit as high as £66bn by 2040, according to a new report from the Society of Motor Manufacturers and Traders (SMMT). Connected and automated mobility: The UK economic and market opportunities sets out the socio-economic benefits for Britain if connected and automated mobility (CAM) technology is adopted in a range of commercial applications, from self-driving cars and logistics vehicles to automated buses, taxis, shuttles, and tractors. Boosting rollout would create about 342,000 additional jobs across the economy from now to 2040, with 12,250 in automotive manufacturing, the report said. The report, summarising a study by KPMG and funded by Innovate UK, with support from the Automotive Council and Zenzic, reveals that on-road logistics has the potential to be the largest market, with annual revenue of £15.2bn by 2040 from rolling out CAM tech in the sector. Implementing CAM tech in on-road passenger services, such as buses, taxis, and ride-hailing, with a possible annual revenue of £3.7bn, and off-road logistics, including vehicles used in warehouses, ports, and airports, worth £2.3bn per year by 2040, rank as the second and third largest markets.
North West businesses are urged to step up cyber security in wake of rising attacks
The North West Cyber Resilience Centre (NWCRC) is warning businesses to urgently step up protection in the wake of rising cybercrime figures. In particular, the police-backed not-for-profit organisation is cautioning against email compromise, as that is often a weak point for attackers to take advantage of. Not only can a cyber-attack completely wipe out a small business, but the lasting reputational and financial damage can be substantial. DI Dan Giannasi, head of cyber and innovation at the NWCRC, said: “Usually the most common point of attack for an SME is by a phishing email, where an employee believes it to be a genuine email about an invoice or a service, for example, and clicks on a link. From that point, a cyber attacker can quickly take over a whole system and literally hold a business to ransom. One cyber-attack can cause significant financial damage and could even wipe out a business completely.” A recent report by Hiscox found that in three years, the proportion of small businesses with fewer than 10 employees becoming victims of a cyber-attack has increased from 23% to 36%.