Business News Round Up (15/06/2021)
Make UK: Manufacturing economic growth forecast to double
According to Make UK and BDO’s latest survey, follow a tough year, the UK’s manufacturing industry is accelerating, with growth prospects said to be significantly more positive for the rest of the year. “Manufacturing growth is now firmly accelerating as restrictions have been eased and economies around the globe have started to open up. Looking forward there seems no reason to believe that this will not continue, assuming the shackles come off firmly in the second half of the year,” said Fhaheen Khan, Senior Economist at Make UK. While 2020 saw a 10% decline in output, the rest of 2021 shows promise. With the country experiencing a surge in both domestic and overseas orders it is expected that 2021 will recover a significant amount of what was lost in the previous year. Alongside this increased volume of orders, intentions to invest have also increased compared to the first quarter of 2020, which is suggested to be a result of the temporary super-deduction tax’ in the Budget.
Industry launches to support digital transformation in North West
A new initiative has been launched to help SME pharmaceutical manufacturers in Cheshire and Warrington better understand and implement industrial digital technologies. The £5.6 million CW4.0 initiative is aimed at helping manufacturers through every stage of digital transformation. It will offer expertise on understanding emerging technology and help businesses looking to trial and implement new tech such as sensors, advanced scanning, artificial intelligence and more. CW4.0 is a successor to LCR4.0, which ran for three years and supported more than 300 SMEs to harness emerging technologies in the Liverpool City Region. The CW4.0 initiative is hoping to deliver a similar impact for Cheshire and Warrington’s economy. It is being delivered by a number of North West organisations, led by the University of Liverpool’s Virtual Engineering Centre (VEC), in partnership with the Science and Technology Facilities Council, Liverpool John Moore’s University, and the Northern Automotive Alliance. The initiative is part-funded by the European Regional Development Fund (ERDF).
Unemployment falls as lockdown easing sees growth in jobs
The number of employees on UK payrolls surged by a record amount in May as COVID restrictions eased and pubs and restaurants resumed indoor service, though it still remains more than half a million below its pre-pandemic peak. Data released this morning showed that British companies increased their number of employees by 197,000 in May, the biggest single-month increase since records began in July 2014, taking the total to 28.5 million. Tuesday’s figures also showed the fastest headline wage growth since 2007 in the year to April, although statisticians warned that this was distorted by comparisons with depressed wages a year ago and greater job losses among low-paid staff. The headline unemployment rate fell for a fourth month in a row to 4.7% for the three months to April, in line with forecasts in a Reuters poll of economists.
Industry expert says skills potential of Scotland’s workforce can propel nation from recovery into growth in the aftermath of Covid-19
Developing skills at small firms across Scotland will be key to the nation’s recovery from the coronavirus crisis, according to Colin Lamb of Connect Three – a consultancy that specialises in improving businesses through people. Colin was speaking after the ‘changemaking’ consultancy entered a major four-year partnership with Skills Development Scotland (SDS) to help upskill the nation’s workers as part of a new four-year initiative designed to propel small and medium sized enterprises (SMEs) across the country from recovery into growth. Covid-19 – alongside longer-term challenges such as demographic and technological changes – has brought the skills needs of Scotland’s businesses into sharper focus. Connect Three is one of four partners selected to deliver the Skills for Growth programme, which offers free support to SMEs helping them adapt to a new economic environment brought about by the pandemic. With a focus on innovation and productivity, Skills for Growth helps identify and address skills gaps in the workforce to drive businesses forward.