Business News Round Up (11/09/2023)
UK manufacturing sector climbs to eighth in world rankings – Make UK analysis
The UK’s manufacturing sector has climbed one place to eighth in the world rankings, overtaking France in the process according to analysis of the latest official data published by Make UK today. The figures are contained in the latest annual ‘Manufacturing – The Facts’ which contains a wide variety of data about the contribution of manufacturing to the economy including exports, sectoral breakdown, how the UK compares to other nations and salary levels. The data shows that in 2021 UK (the latest year for which global comparisons are available) UK manufacturing output was worth some $272bn, compared to $262bn for France, but behind Italy ($314bn). To put this data in context, China is the largest manufacturing nation worth $4.9tn, followed by the United States $2.5tn and Japan $995bn. Germany, the fourth highest, remains the largest European manufacturing country $803bn. According to Make UK while the climb up the rankings is encouraging, it strongly cautioned that it is only the third time since 2002 that the UK has ranked above France and cannot be attributed to any post Brexit bounce or other specific factor.
Firms unaware of imminent EU-UK regulations
Most businesses are unaware and unprepared for a swathe of fast approaching changes in EU-UK regulations, according to a survey. The British Chambers of Commerce found that 87% of exporters knew about new EU VAT requirements due in January 2025 while 43% of manufacturers are unaware of the UK’s, now voluntary, alternative product safety marking system to the EU’s CE version. The lack of knowledge and preparation for the changes, mean that some traders with the EU could face further delays and unexpected costs. In some cases, exporters could be unable to move their goods to EU customers. William Bain, head of trade policy at the BCC, said: “Our research shows Government must…look again at how it communicates with firms about regulatory changes, especially given the likelihood of further divergence from EU rules in the future. EU and UK policy makers also need to look at ways of simplifying a system that is over-burdensome for traders on both sides of the Channel. This could include reducing the complexity of exporting food and exempting smaller firms from the requirement to have a fiscal representative for VAT in the EU. If it’s done right the further embedding of digital trade through Single Trade Windows also has the potential to make exporting and importing much simpler. And there are other practical steps that should be considered like rejoining the Pan-Euro Mediterranean convention to ease rules of origin issues.”
https://dailybusinessgroup.co.uk/2023/09/firms-unaware-of-imminent-eu-uk-regulations/
Increase in North West VC investment in Q2 – report
The value and volume of venture capital (VC) investment in the North West both increased in the second quarter of 2023, according to KPMG’s latest Venture Pulse Report. The report, compiled by PitchBook, found that a total of £165m was raised by North West businesses between April and June, up by 145 per cent on the £67.3m raised in the first three months of the year. Deal volumes in the region increased modestly quarter-on-quarter, with 20 deals being completed in Q2, up from 18 in Q1. Businesses in Greater Manchester accounted for a significant majority of the total value of deals made, with £146m raised across eight deals. Altrincham-based biotech company, Ascend Gene & Cell Therapies, led the fundraising, securing a £116.4m capital injection for its gene therapy manufacturing technology. At a national level, VC investment into the UK remained stable in Q2, as investment levels start to find a new normal following the record levels seen in 2021 and early 2022.
https://www.insidermedia.com/news/north-west/increase-in-north-west-vc-investment-in-q2-report
Outdated and inaccessible information within businesses costs the UK economy more than £25 billion every year
Outdated and inaccessible information within some of the UK’s largest businesses is costing the UK economy a staggering £25 billion every year, with many existing learning resources considered “useless”, according to new research. The landmark global study, carried out by digital learning transformation firm OBRIZUM, surveyed 1,000 enterprise decision makers and 1,000 knowledge workers across the UK and US to understand their approach to corporate training and development as workforce trends continue to evolve. At the heart of the UK’s productivity issue is the time it takes knowledge workers to locate the right information with which to effectively carry out their jobs. OBRIZUM’s study revealed that, on average, each employee wastes 1.51 hours per day, equating to over 360 hours per year, searching for the information they need. Taking the average salary of knowledge workers within businesses comprising of at least 50 employees, the average annual cost of just one employee taking time to search for relevant information is £9,931, equivalent to 21.5% of their salary.