Business News Round Up (11/10/2022)
Scottish administrations rise as economic headwinds take their toll
The number of companies filing for administration across Scotland spiked in the third quarter of 2022, as economic headwinds continued to buffet businesses. Interpath Advisory analysis of notices in The Gazette showed that 14 companies based in Scotland fell into administration from July to September – up from only three during April to June. This mirrors the wider UK picture, where 265 companies fall into administration from July to September – up from 176 during the same period in 2021, and up from 243 in the third quarter of 2020. However, administrations are yet to hit the pre-pandemic levels of 401 in the third quarter of 2019. August, traditionally the quietest month for insolvency appointments, saw the highest monthly number of administrations across the UK since March 2020, with 105 appointments. The rising number of insolvencies can be seen across a wide range of sectors, with building and construction, industrial manufacturing, leisure and hospitality, retail, and the food and drink industry all witnessing increased activity.
https://www.insider.co.uk/news/scottish-administrations-rise-economic-headwinds-28205709
Three quarters of businesses have been hit by labour shortage in last 12 months
Three-quarters of respondent businesses have been impacted by labour shortages over the last year and a majority now believe the issue is a threat to labour market competitiveness, in a new survey out today. In its annual Employment Trends Survey with Pertemps Network Group, the CBI reports that ‘shortages in the labour market are having a material impact on firms’ ability to operate at full capacity, let alone grow’. Many businesses have responded by investing in training, while also increasing pay and improving their offer to staff to help retain workers and attract new recruits. The survey found that nearly half of those who have faced labour shortages in the past 12 months have been unable to meet output demands; 36% made changes to or reduced the products or services they offer, while 26% reduced planned capital investment. Nearly three quarters of respondents said the UK has become a less attractive place to invest/do business in over the past five years.
North West administrations more than double in third quarter
Company administrations in the North West more than doubled in the third quarter of 2022, new figures have shown. Business adviser, Interpath Advisory, said its latest analysis of notices in The Gazette showed a total of 56 companies based in the North West fell into administration from July to September 2022, up from 23 during the same period in 2021. This mirrors the UK picture which saw a total of 265 companies fall into administration from July to September 2022 – up from 176 during the same period in 2021, and up from 243 in third quarter 2020. However, administrations are yet to hit the pre-pandemic levels of 401 in the third quarter of 2019. August – traditionally the quietest month for insolvency appointments – saw the highest monthly number of administrations across the UK since March 2020, with 105 appointments. The rising number of insolvencies can be seen across a wide range of sectors, with building and construction, industrial manufacturing, leisure and hospitality, retail, and the food and drink industry all witnessing increased activity. Rick Harrison, managing director and head of Interpath’s team in the North West, said: “The summer months often herald a quieter period for corporate insolvencies, and so the fact that August witnessed the highest monthly total in more than two years is particularly telling. We know that companies across the North West have been wrestling with a myriad of issues for some time, from rampant inflation, to supply chain challenges, to labour shortages, so this is perhaps the first real evidence that a significant shift in activity is now under way.”
Amazon records a spike in Scottish SMEs selling on its UK stores, up 29% year-on-year
Amazon has published its UK SME Impact Report which highlights how small and medium-sized enterprises (SMEs) selling on Amazon have created 250,000 jobs across the UK to date. Many small business owners have been able to adapt to recent challenges and thrive online for the first time. Over 15,000 UK SMEs selling on Amazon surpassed £100,000 in sales last year, and over 700 reached sales of £1 million or more for the first time. Over 4,000 Scottish SMEs now sell professionally on Amazon’s stores. Sellers in the Glasgow region generated revenue of almost £190,000, one of the highest recorded for any city region in the UK. The Edinburgh figure was almost £140,000. More than half of all physical product sales on the Amazon store in the UK are from independent selling partners, most of who are small and medium-sized businesses. More than 85,000 UK SMEs now sell on Amazon – up more than 25% year-on-year. These businesses reached hundreds of millions of customers around the globe in 2021 – more than half of UK-based sellers exported to another country. They also sold more than 950 million products on Amazon, up from 750 million the year before, which is equivalent to more than 1,750 products a minute on average. SMEs from across the UK are increasingly seeing success from selling on Amazon’s stores, supporting regional economies and communities. Many of these businesses are located outside of London – for example, North West England now has more than 12,000 sellers, up 35% compared to the year before; Wales has over 2,500 sellers, up around a third on the year before; and Scotland has around 4,000 sellers, up around 30% on 2020. Across major UK cities, SMEs based in Manchester, Belfast and Glasgow selling on Amazon recorded some of the highest average annual revenues, surpassing the average annual revenue of London-based sellers.