Business News Round Up (15/07/2024)
£35 million programme to create new manufacturing space launched by Scottish Enterprise
Scottish Enterprise is launching a new £35m Manufacturing Property Challenge Programme for prospective developers of manufacturing property to create 1,000,000sq.ft. of new industrial space to increase innovation and Scotland’s attractiveness to inward investors. The first call of the Manufacturing Property Challenge Programme will make £15m available for developers and combines a funding and support package over five years. It is SE’s first targeted intervention to be introduced following its refocussed strategy for economic transformation. The full programme aims to create the equivalent of 14 football pitches worth of manufacturing accommodation and lever £175m of private sector investment into the economy. Managing director of productivity and business growth at SE Rhona Allison said: “Scotland has a strong manufacturing base across many sectors including renewable energy, life sciences and food and drink. If we want businesses to keep growing as well as new companies to invest here, we need the right infrastructure.”
UK tech sector secures a third of European VC funding in 2024
The UK tech industry has secured nearly a third of all European venture capital (VC) funding for the first half of 2024, as new data reveals a resurgence in investment, according to City AM. According to figures from Dealroom, British tech firms have attracted £7.4 billion in VC funding, marking a 16% increase compared to the same period last year. This influx represents 32% of the total European VC funding, positioning the UK as a dominant player on the continental stage. Unsurprisingly, London continues to lead the charge, with a 30% rise in investment, totalling £5.3 billion. This figure places London ahead of major European cities such as Paris and Stockholm, reinforcing its status as a global tech hub. Meanwhile, Cambridge has also emerged as a key player, with an 83% surge in VC investment, bringing its total to £517 million.
https://www.digit.fyi/uk-tech-sector-secures-a-third-of-european-vc-funding-in-2024/
Growth boost for NW manufacturers, new report reveals
Manufacturers in the North West have seen one of the highest increases in output of any English region or devolved nation in the last decade, as well as one of the best recoveries in output since the pandemic, according to a new report. The Make UK/BDO Annual Regional Manufacturing Outlook report shows that since 2013 output in the region has increased by more than a quarter (26%), while output in 2023 was 12% above the pre-pandemic levels recorded in 2019, also one of the best in the UK. The importance of the manufacturing sector to the region’s economy overall is highlighted by the fact it accounts for almost 15% of the region’s total output (13.4%), well above the national average. It also accounts for 330,000 highly skilled jobs, almost 10% of the region’s employment overall, many of them in high value sectors such as Aerospace, Automotive, Pharmaceuticals and Chemicals.
Firms ‘stay put’ as stock falls and work patterns change
More Edinburgh occupiers decided to ‘stay put’ rather than taking new office space during the second quarter of 2024, with regears, or renegotiations, outpacing new leases, according to figures from Knight Frank. The commercial property consultancy’s analysis of office take-up between April and June found that renewed leases amounted to 135,013 sq. ft. of activity across Edinburgh, while occupiers agreeing to take new space accounted for 113,000sq. ft. Edinburgh’s overall vacancy rate remained at around 11%, but new and second-hand Grade A availability has fallen to less than 0.4% and 6.7% respectively. A series of pre-lets at New Clarendon and 30 Semple Street have further restricted supply – including Red Rock Power’s agreement to occupy the entire fourth floor at the latter development. Knight Frank said that occupiers in the city are increasingly looking for ‘let-ready’, fitted offices, providing them with quick access and lower requirements for capital expenditure on entry.
https://dailybusinessgroup.co.uk/2024/07/firms-stay-put-as-stock-falls-and-work-patterns-change/