Business News Round Up (19/07/2021)
Manufacturers hit by fall in EU exports before and after Brexit
Political uncertainty caused by leaving the EU was beginning to be felt by manufacturers even before the departure and signing of the trade deal last year, new research suggests. Manufacturing firms were seeing their dependence on the EU as an export market decline even before the impact of Brexit, according to industry body – formerly the Engineering Employers’ Federation – Make UK and business advisory firm BDO. Their study indicated that only firms in Scotland and the West Midlands saw the share of exports to the EU increase slightly last year. Trade with the EU has improved recently, but quarterly trade data for the first three months of the year shows exports were still 27% below the same period a year ago. Make UK said this supported anecdotal evidence that many companies were already choosing not to supply the EU or that EU customers were turning away from UK-based companies.
https://www.insider.co.uk/news/manufacturers-hit-fall-eu-exports-24563756
Profit warnings issued by Northern listed companies fall as businesses continue recovery from pandemic
Profit warnings issued by listed companies in the North fell by almost 70% during the second quarter of 2021 compared to the same period last year, according to new figures. The latest EY-Parthenon report shows that only eight warnings were made during the period, a 69% reduction. In the UK, just 32 profit warnings were issued, the lowest quarterly total EY has recorded in over 22 years of profit warnings analysis. A quarter of these were issued by listed businesses in the North, which includes the North East, North West and Yorkshire. They recorded the highest number of profit warnings per region, ahead of London (seven) and the Midlands (five). In just over 12 months, the EY-Parthenon Profit Warnings report recorded both the lowest and highest quarters of warnings since analysis began at the turn of the Millennium. The second quarter’s record low is in contrast to the record high of 301 in Q1 2020 and the second highest ever total of 165 in Q2 2020.
https://www.business-live.co.uk/enterprise/profit-warnings-issued-northern-listed-21070277
Confident trend to reduce office space will continue – David Home
The commercial property sector has faced a plethora of challenges as a result of the pandemic. From the abrupt enforcement of remote working leaving bustling city centres unrecognisable, to the accelerated digital transformation of the high street, real estate has been reimagined. The transition to remote working has generally been successful, with many firms now looking to implement hybrid working moving forward. Some organisations have decided to shift to a wholly remote model, with no requirement for physical office accommodation. Of those who do want to get back to the office, many firms are looking to downsize their footprint and are instead prioritising high-quality space designed with flexibility in mind. Importantly, organisations want workspaces which promote better health and wellbeing.
Scots ready to pay the price for more sustainable travel, finds PwC study
Scots are preparing to return to the daily commute when Covid-19 restrictions are lifted, with many willing to pay extra in travel costs to protect the environment, according to new research from PwC. With restrictions still in place, 40% of Scots are currently spending at least one day a week working from home, with 21% at home every day. When restrictions are lifted however, more are aiming for flexibility with 45% saying they hoped to work from home at least one day a week although the collaborative and social aspects of office working remain a draw, with just 10% hoping to work from home permanently. As the recovery gets underway, Scots are also willing to pay more in travel costs to maintain environmental improvements seen during the pandemic, such as reduced pollution, with 57% supporting long-term social measures to reduce the effects of protecting the environment even if it led to increased transport costs. This was ahead of the UK overall, where there is 50% support.