Business News Round Up (03/07/2025)
BDO: Scottish mid-sized businesses predict growth despite trade bottlenecks
Scottish mid-sized businesses are optimistic about plans to export overseas in the next year, despite recent turmoil in global trade and tough economic challenges, according to BDO. The firm’s survey of over 500 mid-sized businesses reveals that 54% of companies are confident about their growth prospects over the next 12 months. Expansion plans also include opening new premises, recruiting new staff and investing in new technologies and R&D. Scottish businesses see exports as an important part of their growth strategy over the next year – with 28% citing strong or growing demand as their main motivation. 44% said favourable trade agreements or government support in receiving markets makes them more attractive. Asked which regions would be the most appealing, 44% said Eastern Europe and Central Asia as businesses work to forge new trade corridors amid ongoing negotiations between the UK and other territories.
Greater Manchester is productivity growth capital of UK, new data shows
New analysis from the Northern Powerhouse Partnership has demonstrated that Greater Manchester has seen the biggest increase in productivity of any UK region or mayoralty over the past two decades, cementing its position as the UK’s productivity growth capital. Between 2004 and 2023, Greater Manchester recorded the highest rise in gross value added (GVA) per hour worked, outperforming every other combined authority and city region for growth across the UK. This follows a period of sustained investment in public transport and infrastructure, alongside the long-term devolution of powers to Greater Manchester’s metro mayor. The 31% increase in productivity has begun to meaningfully close the gap between the city region with London. Meanwhile, the northern town of Rotherham has emerged as one of the fastest growing sub-regional economies for productivity in the UK and the fastest growing in the North, with a 63.9% increase in productivity over the same period.
Circular firms attract record capital, but momentum is slowing
Businesses engaging the circular economy have seen a surge in investment over the last few years, having raised 119.7bn between 2018 and 2023, according to the latest research from economic campaign group Circle Economy. After a close examination of global financial streams, the Circularity Gap Report Finance found that firms with circular business models are booming, with investment surging by 87% between 2021 and 2023 compared to earlier years. Along with KPMG International and the International Finance Corporation, Circle Economy’s study revealed that investment in the circular economy has grown from 7.3bn in 2018 to a peak of 30.6bn in 2021, before falling slightly to £20.4bn in 2023. Most of those investments have come from private backers, with the report claiming that interest in circular business models is driven by their ability to generate additional revenue, unlock new markets, and deliver greater value from fewer resources.
https://www.digit.fyi/circular-firms-attract-record-capital-but-momentum-is-slowing
Skills crisis puts 1.5 million homes pledge at risk, warns industry
A crippling skills crisis is threatening the Government’s promise to build 1.5 million homes by 2029, new research reveals. Construction firms across the UK are facing severe recruitment challenges, with more than three-quarters (76%) reporting difficulty in finding the skilled workers they need, according to a survey by City & Guilds. The study, which gathered insights from employers, training providers and employees, found that 84% believe the sector is grappling with critical skills shortages. The Construction Industry Training Board (CITB) estimates the industry will need to recruit an additional 239,300 workers by 2029 to meet demand, a figure many in the sector see as increasingly unachievable. More than half (54%) of employers say the current workforce is not equipped to deliver on the Government’s housing target, with an equal number also casting doubt on the industry’s ability to meet net zero housing ambitions.