Business News Round Up (20/06/2021)
Small businesses complain of ‘cost-of-working crisis’
Eight in 10 small businesses have said they are facing a ‘cost-of-working crisis’ due to poor customer service from suppliers. A survey from TalkTalk Business revealed that two thirds of small and medium-sized enterprises (SMEs) work with suppliers who cite the pandemic as causing poor customer service, despite it being six months since the last set of Covid-19 restrictions ended. The supplier issue has meant SMEs are unable to focus on economic challenges presented by the cost-of-living crisis – such as rising costs and inflation – with eight in 10 small businesses describing a “cost-of-working crisis”. On average, SMEs spend 16 hours a month calling supplier customer service teams, which 62% have said results in less time spent focusing on their core business. The most common issues faced include not having issues dealt with in one call (44%), being kept on hold (55%) and being passed being customer service agents (48%) by suppliers. Businesses surveyed said support including speaking to the same agent (41%), speaking to a human customer support agent over an automated one (54%), and speaking to someone who understands their company ethos (36%) would enable them to effectively overcome cost-of-working issues. Companies in the energy, telecoms, and water sectors were found to be more likely to let down their small business customers. Just four in 10 independent firms said the customer service they received had improved since the pandemic.
https://www.insider.co.uk/news/small-businesses-complain-cost-working-27277559
Firms ‘rethinking’ investment after windfall tax
Oil and gas investment in the North Sea is already showing signs of faltering following the UK government’s new windfall tax. Equinor, the Norwegian state energy company, may abandon its £4.5 billion investment in the Rosebank Field, near the Shetland Islands, while Shell is once again wavering on the £2bn Cambo project, according to a weekend report. Equinor played down the report as “speculation”. Rishi Sunak, the Chancellor, imposed a 25% additional tax on the profits made by offshore energy firms operating in the region in response to calls for help with rising household and business bills. The UK’s oil and gas operators – which includes many smaller independent companies as well as the better-known global giant, were already paying 40% tax on profits – the highest rate of any sector. Offshore Energies UK the new 65% rate makes investing in new gas and oil fields in UK waters far less attractive. OEUK research suggests that, without new investment, by 2030 around 80% of UK gas supplies and more than 70% of oil supplies will have to be sourced abroad.
The Data Lab joins UK-wide manufacturing industry innovation consortium
Scotland’s national agency for data and artificial intelligence is joining a UK-wide consortium to foster innovation in the manufacturing industry. The Data Lab will collaborate with the likes of Cambridge and Ulster universities to create an online £53.8m Smart Manufacturing Data Innovation Hub to benefit firms throughout the UK. SMDIH will be the largest consortium that the Scottish innovation centre has been a part of in its seven-year history. As part of the hub, whose role will be to increase productivity and competitiveness in the UK manufacturing sector, The Data Lab will lead data science efforts which will include coordinating organisations direct access to and assistance from data scientists, extending the reach for participating firms to work with UK cutting edge platforms, facilities and systems, and championing data skills through knowledge exchange workshops and online learning content. Ulster University, which will lead the consortium, has been working in the manufacturing innovation space for a number of years and were keen to create a model to further extend their work similar to that of The Data Lab which over the last seven years has championed data skills and the increasing the use of data science within organisations. The hub will empower manufacturing firms to capture and better utilise their data, helping them to increase productivity, growth, and sustainability – all pillars which The Data Lab’s programmes have been built upon. The wider partnership across the consortium brings together skill sets from academia, enterprise agencies and industry to advocate data best practice.
Manufacturers call for help to get through coming economic storm
Manufacturers in the North East and further afield have called on the Treasury to offer more support amid a poor economic outlook to help “weather the immediate storm”. Make UK, trade body for manufacturers, and consultancy BDO found that costs are continuing to rise and output opportunities have been stifled. A survey revealed that two thirds of companies (67.8%) said rising energy costs were causing catastrophic or major disruption. Meanwhile 71.9% said increased raw material costs posed a similar threat and 66.8% have been plagued by rising transport costs. Finding talent has also proved challenging for firms, with vacancies at record levels at 4.1 vacancies per 100 jobs. Despite the Chancellor saying earlier this year that he would offer support to the sector in the autumn, Make UK warned that help is needed before summer in order for businesses to “weather the immediate storm”. Make UK made several recommendations for the Government including waiving or reducing business rates for the next 12 months and reviewing the effectiveness of business loan schemes implemented during the pandemic.
https://www.business-live.co.uk/enterprise/manufacturers-call-help-through-coming-24269159