Business News Round Up (04/05/2021)
95% of companies believe internet connectivity is now more important than a city centre office
More than 95% of businesses believe having a strong internet connection is more important than a city centre location. Addleshaw Goddard and the Fraser of Allander Institute surveyed more than 500 businesses from across the Scottish economy in April, finding that only 15% favoured a city-centre location over digital connectivity, while 40% said that strong public transport links would be a determining factor. The research showed that more than a quarter of businesses expected to permanently reduce their office footprint by two thirds, with respondents stating that home-working has had an impact on workplace innovation and culture. Nearly half believed that remote work had an impact on productivity, leading to 42% of organisations to have invested in new technology last year to aid this. The same proportion of businesses said that flexible and collaborative space will be key to their new physical place of work. Nearly three quarters of those surveyed said the cost of space would determine future location decisions, as businesses look to strengthen their balance sheets or build capital reserves as the economy recovers.
https://www.insider.co.uk/news/95-companies-believe-internet-connectivity-24032521
UK private sector set for summer rebound as economy reopens
Britain’s private sector is on course to a summertime boom, with growth anticipated to be at its highest level in six years, as the economy reopens. The Confederation of British Industry (CBI) expects private sector activity to grow 32% in the next three months — marking the strongest predictions for growth since June 2015. Private sector activity rose 24% last month, according to CBI’s figures. Growth in business & professional services firms is expected to grow by 48% and manufacturers by 36%, the strongest growth since April 2014 and March 2017, respectively. Expectations for growth in distribution sales are at their highest since February 2020, up 15%. Meanwhile, consumer services firms have tempered their expectations relative to last month, and now expect activity to remain flat in the next three months, increasing 1% from 10%.
40% in the UK are planning to relocate due to the pandemic
The UK is on the move. A recent study by services company, GHD, has revealed that 40% of people in the UK are considering moving to a different location as a result of the COVID-19 pandemic, with a higher proportion of those considering a move among people living in urban areas and city centres. According to the data, the most popular reasons given for wanting to move were: 1) to get more space to make working from home easier; 2) to live in a cleaner air environment; 3) to have better local access to nature, and 4) to live in a more environmentally sustainable location. The results showed that more respondents in the UK were considering moving than in any of the other countries surveyed, which were the USA, Canada, Australia, New Zealand, and Singapore. GHD conducted a survey among over 8000 consumers in these six countries, of which 1,004 live in the UK, in order to gain insight into how changing attitudes and behaviours will shape the way we power our future, as part of its whitepaper “The World of Energy Post-COVID”.
Profit warnings plummet, but recovery brings its own challenges
Listed companies based in the North of England issued seven profit warnings in the first quarter of 2021, an 89% decrease from the 62 warnings recorded in the same period a year ago, according to EY-Parthenon’s latest Profit Warnings report. The figure is also a 30% fall on the previous quarter when 10 profit warnings were issued across the North and is the lowest total of any quarter since quarter four of 2014, when four warnings were issued. Those in FTSE consumer discretionary sectors – including retailers and travel and leisure – issued the most warnings during the period. Sam Woodward, EY-Parthenon Turnaround and Restructuring Strategy Partner in the North West said: “The majority of North-based businesses issuing profit warnings last year did so in the first quarter at the onset of the pandemic, but volumes began to fall from the middle of last year.