Business News Round Up (12/01/2023)
Nearly half of UK businesses are ‘recession ready’ finds study
Pleo, the spending solution for small to medium-sized companies has found that only 45% of British businesses are feeling financially prepared to cope with the UK recession as the cost-of-living crisis continues. Pleo’s research, which spoke to 500 business leaders across the UK, has identified growing concerns for business stability in the UK as leaders feel they aren’t prepared to cope with the knock-on effects of the UK recession. Speaking to business leaders, two in five (40%) said their clients are making budget cuts, whilst over a third (36%) have said they have seen clients terminating account contracts completely, creating instability, and as such putting huge pressures on leaders as they struggle to navigate wider economic challenges. Looking ahead, businesses are also experiencing huge challenges with 2023 planning. Nearly half (44%) say they are struggling to set 2023 budgets due to economic uncertainties with the same amount (44%) highlighting a lack of transparency over business spend during 2022 as the reason.
Challenging environment weighing on Scottish construction workloads, but recruitment proves more resilient
Activity in the Scotland construction sector continued to fall at the end of last year as financial constraints and a challenging economic environment continued to impact the industry. A net balance of -7% of Scottish respondents said that workloads fell, compared to +10% in Q3. In the UK as a whole, workloads were reported to be flat. This trend of a slowdown in activity corresponds with a negative outlook from Scottish surveyors too with -12% of respondents expecting that workloads will fall over the next 12 months, down from -1% in Q3, and +25% in Q2. Looking at the current workloads, all sub-sectors saw a slowdown in activity, with both public and private housing experiencing the steepest slowdowns. In Q4, -2% of respondents reported a fall in public housing, down from +27% in Q3, and -8% of respondents reported a fall in private housing, down from +15% in Q3. Although there is still a skills shortage across the industry in Scotland, it was slightly less pronounced than in previously quarters. In Q4, 58% of surveyors reported a shortage of quantity surveyors, down from 60% in Q3. Shortages in construction professionals fell from 62% in Q3 to 54% in Q4 and shortages of bricklayers fell from 59% to 55% between Q3 and Q4.
Manchester spin-out that looks to revolutionise water filtration gets £500,000 funding boost
A spin-out company based at The University of Manchester that is developing a breakthrough water filtration technology, which promises to be both greener and cheaper, has secured SEED equity investment of £500,000 to help scale up. Molymem, with its mission to enable cleaner water supplies for the world’s growing demand, has developed an energy-efficient and highly versatile membrane coating based around a material called modified molybdenum disulphide (MoS2) to create an innovative water filtration solution. The technology comes from research led by Professor Rob Dryfe and Dr Mark Bissett, at The University of Manchester, working in partnership with innovation experts at the University’s Graphene Engineering Innovation Centre (GEIC). This team has used a two-dimensional version of MoS2, part of which is a natural crystal with physical properties that are complementary to those of graphene, the world’s first 2D material, originally isolated at The University of Manchester. Molymem and its filtration application has been awarded an investment funding package of £500,400. Among the private sector investors are Cambridge Angels, Manchester Angels and NorthInvest.
Amazon to close Gourock and two other sites
Online retailer Amazon is shutting its Gourock warehouse in Inverclyde and two others in Doncaster and Hemel Hempstead. It is understood that all 1,200 workers will be offered roles at other locations. The Gourock depot overlooking the Clyde employs 300 and could shut in March. It opened in 2004. Amazon has also announced new fulfilment centres at Peddimore, West Midlands, and Stockton-on-Tees, County Durham, which will create 2,500 jobs over the next three years. A spokesman for the company said: “We’re always evaluating our network to make sure it fits our business needs and to improve the experience for our employees and customers. “All employees affected by site closure consultations will be offered the opportunity to transfer to other facilities and we remain committed to our customers, employees and communities across the UK.” Steve Garelick, GMB organiser, said: “This is a real kick in the teeth for Amazon staff who worked themselves into the ground during the festive rush. Hard-up Amazon workers can’t suddenly be expected to up sticks and move to a different fulfilment centre which may be many miles away. To move forward with stability, Amazon needs to engage with the workforce through their union GMB.”