Business News Round Up (17/08/2021)
Pandemic forces half of Scottish businesses to innovate
Almost half (48%) of Scottish businesses say Covid-19 has forced them to be more creative and innovative in finding new areas of growth. Bank of Scotland surveyed 1,200 companies – including 97 businesses in Scotland – during July, finding that 49% have made changes to their business since the start of the pandemic, such as making changes to their operations (24%) and expanding their online offering (19%). A significant number of businesses are benefiting from pivoting, with more than a third (37%) saying that they will keep their changes in the long term. It is already paying dividends for some, with 13% of firms saying that their operational changes have boosted revenues and profits. Manufacturers were most likely to make changes to their operating patterns – 28% vs 20% UK average – and to expand the products they offered – 22% vs 17%. Retail was the top sector for expanding online offerings – 25% vs 21% UK average – buoyed by the shift to online consumer spending.
https://www.insider.co.uk/news/pandemic-forces-half-scottish-businesses-24769824
North West small business confidence takes a hit but remains positive
The latest FSB Voice of Small Business Index (SBI) shows that North West business confidence has fallen to 21% in the second quarter of 2021, down from 39% the previous quarter – the highest level since 2015 – when shops began to re-open in England and Wales. However, with confidence understandably fluctuating during the past 12 months during the COVID pandemic, FSB’s research shows sentiment in the region has remained positive in 2021. This coincides with the continued relaxation of COVID safety regulations. Encouragingly, the number of businesses reporting increased profits (40%) has increased significantly over the past three months – the last time North West small businesses were asked about profits, in quarter four of 2020, just 21% reported growth. In addition, the number of businesses increasing headcount (23%) is greater than those reducing headcount (12%) – something not seen since before the pandemic. Further, heading into quarter three, investment intentions in the North West are the most positive across the UK. In all, 37% of small businesses are looking to increase the amount of capital being invested in their business.
UK job vacancies at record high as wages tick up
Job vacancies have hit a record high as the UK’s labour market continues to “rebound robustly”, according to the latest official figures. The number of vacancies hit 953,000 in the three months to July, the Office for National Statistics (ONS) said. The unemployment rate fell to 4.7% in the three months to June, while the annual growth in average pay was 7.4%. However, the ONS urged caution in reading too much into the rise in wages. The ONS said payrolls rose by 182,000 between June and July, although at 28.9 million it is still 201,000 lower than before the pandemic struck. The number of people on payroll has now grown over half a million in the past three months, regaining about four-fifths of the fall seen at the start of the pandemic. Arts, leisure, and food service firms were among those making a big contribution to the surge in job openings.
https://www.bbc.co.uk/news/business-58241006
Pandemic forced two fifths of North West businesses to innovate
Covid-19 prompted a “wave of innovation” as businesses pivoted their operations to survive, according to a Lloyds Bank survey. Two fifths of North West businesses said the pandemic forced them to be more creative and innovative in finding new areas of growth. Half have made changes to their operations since the start of the pandemic, such as growing the number of services or products they offer (24%) and expanding their online offering (17%). Crucially, a significant number of the region’s businesses are benefiting from the pivots, with almost half saying that they will keep their changes in the long term. And it is already paying dividends with a third of firms saying that their operational changes have boosted revenues and profits. Across the UK half of businesses (48%) said that the pandemic had forced them to be more innovative and 56% made changes to their operations as a result. The most common changes included selling more online (21%) and adapting shift patterns (20%).