Business News Round Up (12/09/2023)
Salary freezes and restructures rife amongst the North West mid-market, as high rates bite
New research from Grant Thornton UK LLP’s Business Outlook Tracker finds that rising interest rates and high costs have pushed many North West businesses to review their spending, freeze pay increases and restructure their operations, in a bid to manage their finances. The survey of 101 North Western mid-sized businesses finds that 51% have already frozen salary increases, with a further 35% planning to do so. Almost half (47%) have also frozen workforce bonuses. The research finds that spending on people costs has been reined across most areas, with 42% also having reduced their headcount and many businesses freezing recruitment (38%). As well as tightening costs for people, many businesses in the North West have had to make changes to their operations in a bid to manage costs. Almost all (94%) have either already restructured their operations or have plans to do so. The research shows that spending is being closely monitored within the market, with over half (51%) having reviewed their non-essential spending and a further 34% planning to do so. North Western businesses are looking for solutions in a bid to improve performance amid a tightening of spending. Over half (53%) have invested in productivity, efficiency, and automation and a further 41% have plans to explore options in this area.
University of Glasgow launches new data science and AI centre for ‘social good’
The University of Glasgow has launched a new data science and artificial intelligence (AI) centre designed to harness the cutting-edge technologies for ‘social good’. The facility will bring together hundreds of academics from varied disciplines to tackle global challenges including climate change, health inequalities and improving the quality of life in cities. The centre was officially opened during an event attended by the Richard Lochhead MSP, the Scottish Government’s minister for small business, innovation, tourism, and trade. He said: “Most experts agree that the impact of artificial intelligence on our lives will be huge, and that if we do it right, AI can do a lot of good, from designing new drugs to tackling the climate emergency. Artificial intelligence has, however, triggered heated worldwide debate. We are working to make Scotland a world leader in the development and use of artificial intelligence in a way which is trustworthy, ethical, and inclusive. To do so we must rise to the challenges and opportunities, which will be felt across our economy and society. The University of Glasgow has long been renowned for its technical innovation and research, and I am confident that the new Centre for Data Science and AI will build on this reputation. I look forward to the Centre fostering collaboration and showcasing effective, impactful, and ethical data science and AI, in keeping with the vision of Scotland’s AI Strategy.”
North West business activity fell in August for first time in seven months
Business activity levels across the North West fell for the first time in seven months in August, according to the latest Regional PMI survey by high street bank NatWest. The headline North West PMI Business Activity Index – a seasonally adjusted index that measures the month-on-month change in the combined output of the region’s manufacturing and service sectors – dropped to 47.2 in August, moving below the 50.0 no-change threshold separating growth from contraction for the first time since January. The region reflected the national picture, albeit with a sharper rate of contraction, with the UK as a whole recording a Business Activity Index of 48.6; only the South West and Yorkshire & Humber regions recorded more marked declines. Analysis by the bank indicated the fall in business activity was the result of a longer-term trend in underlying data showing backlogs and inflows of work declining at businesses in the region throughout 2023.
V&A Dundee brings £304 million to Scottish economy
The V&A Dundee has generated £304m for the Scottish economy so far, according to a new report published ahead of its fifth anniversary. It also found there have been 1.7 million visits to the museum since it opened on 15 September 2018. This included about 500,000 people who came to Dundee for the first time as part of trips to the facility. The research, by BOP Consulting and Tialt, found the museum generated £234m of gross value added (GVA) impact in the five years since opening, in addition to a £70m GVA impact from its construction. The report also found that between April and September this year, V&A Dundee contributed 1,685 jobs to Scotland – including 450 in Dundee – not just the people who work in the museum, but the wider network involved across the creative economy. Leonie Bell, director of V&A Dundee, said: “Since opening, V&A Dundee has emerged as an important new voice for design and a gathering place for visitors from near and far, contributing to Dundee and Scotland’s creative, cultural, and economic growth, despite the major challenges of the Covid pandemic. We’ve engaged over 1.7 million people through exhibitions, events, learning and community activities, and with the architecture and engineering of our spectacular home, designed by Kengo Kuma. What matters now is how we grow from this point as part of Dundee and Scotland’s creative community, continuing to learn, listen and improve.”
https://www.insider.co.uk/news/va-dundee-brings-304-million-30912016