Business News Round Up (07/04/2022)
Downside risks to UK exporter employment – UK Exporter Monitor, April 2022
UK exporter counts and revenues have gone up by 2.33% and 2.99% in March 2022 compared to February 2022. However, this is roughly half the growth rate we predicted in our last forecast, reflecting downside risks. Despite a mild uptick in counts and revenues of exporters, employment has fallen back by nearly 8% since February to the lowest it has been since January 2021. This indicates a risk aversion amongst exporters faced with challenges in their supply chains, rising costs and the evident challenges of the Russia-Ukraine crisis, the uncertainties ahead are driving UK exporters to take measures to increase their efficiency. As noted in February’s Exporter Monitor, it is large businesses that are particularly impacted in terms of the drop in employment, with 10.77% fewer employees compared to March 2021, suggesting that these are the ones that would be most exposed to shifts in the sanctions regime and longer-term economic disruption.
Commercial property take-up in Edinburgh and Glasgow on the rise again
Demand for new office space has continued to rise during the first quarter of 2022 across Edinburgh and Glasgow. New research has revealed that the number of 5,000 sq ft deals in the capital rose during the first few months of this year, compared to the same period pre-pandemic, according to commercial property specialist JLL. It found that the average UK occupancy levels peaked in quarter one of this year, at 38%, returning to levels seen at the end of 2021. In Edinburgh, there was a total take-up just short of 130,000 sq ft, with more than 90,000 sq ft of office occupancy in the city centre. There was also an increase in the number of occupiers looking for space, compared to the first quarter in 2019, with professional services and technology, media and telecoms being the most active sectors at the start of the year. JLL’s data showed that the number of second-hand properties coming back to market was also on the rise, as firms targeted higher quality buildings and required less space as a result of the shift to hybrid working. In Glasgow, take up across the city centre grew by almost 33%, compared with first quarter figures from 2021.
https://www.insider.co.uk/news/commercial-property-take-up-edinburgh-26654078
Construction firms defy pressures but optimism slipping
UK construction firms are defying the biggest leap in costs in six months but the war in Ukraine is adding to growing price and supply chain challenges. Builders reported problems obtaining supplies, and escalating energy, fuel, and commodity prices last month, according to S&P Global’s latest purchasing managers’ index (PMI). Tim Moore, economics director at S&P Global, said the sector had seen the fastest rise in costs for six months. “Intense inflationary pressures appear to have unnerved some construction companies,” he said. Energy prices were already rising before the war in Ukraine led to further hikes in the cost of oil and gas. Despite these problems, the construction sector continued expanding last month. In March the sector was given a healthy score of 59.1, unchanged from February. New orders for construction projects climbed at the fastest pace since August 2021. The index is a good estimate to measure whether the sector is growing and what sentiment is like. A score above 50 represents growth. However, business optimism hit a 17-month low, with builders also concerned about the economic impact of the Ukraine war.
New ‘tech fest’ for Glasgow to boost Scotland’s technology sector
A new annual ‘tech fest’ will be hosted in Glasgow this month to support Scotland’s technology companies and entrepreneurs in a bid to boost the sector. ‘Glasgow Tech Fest’, run by innovation hub Glasgow City Innovation District (GCID), will offer the tech community “valuable insights” from industry experts into topics such as developing talent, current market dynamics within the tech sector, product-market fit, and high-growth scaling and investment. It is being funded by the Scottish Government through its £1 million Scottish Technology Ecosystem Fund, set up in response to the recommendations outlined in former Skyscanner executive Mark Logan’s review of the industry. Finance secretary Kate Forbes will deliver a welcome address at the all-day event, which will focus on the four key themes of founders, investment, ecosystem, and industry sectors.