Business News Round Up (20/12/2022)
Manufacturing output falls at fastest pace in more than two years
UK manufacturers reported a fall in output volumes in the three months to December, at the fastest pace since the three months to September 2020, according to the CBI’s latest Industrial Trends Survey. This fall was largely driven by the food, drink & tobacco, paper, printing & media, and mechanical engineering sectors. The survey found that selling price inflation is expected to accelerate slightly in the next three months (though below the record high reached earlier this year). Total order books as well as export order books were reported as below normal, while stocks of finished goods were seen as adequate. The survey, based on the responses of 220 manufacturing firms, found that Manufacturing output volumes fell in the three months to December , and at the fastest pace since September 2020. Output is expected to fall at a similar pace in the three months to March. Output fell in 11 out of 17 sectors in the three months to December. The decrease in overall output reported this quarter was driven by the food, drink & tobacco; paper, printing & media; and mechanical engineering sectors.
Regional spotlight: why the future is bright for Scotland’s tech industry
Scotland is celebrated for its exports of textiles, whisky, salmon, and shortbread. Yet it is Scotland’s technology industry that is driving the next wave of economic growth, with some seeing it as having the potential to become the UK’s Silicon Valley. Scotland spans nearly 78,000 square kilometres, including the mountainous and loch-filled region in the northwest and the built-up areas closer to the English border. While it has eight cities, its tech activity is heavily concentrated in three: Edinburgh, Glasgow, and Aberdeen. There are more than 850 high-growth tech businesses in Scotland, according to research firm Beahurst, with 38% of those headquartered in Edinburgh. Combined, these start-ups raised £454m in 2021, and £312m in the first half of 2022. Entrepreneurs in the region are optimistic about its potential. According to the annual Scottish Start-up Survey, 93% of businesses based in Scotland said it is a good place to launch a start-up. “Scotland has gone from strength to strength as a tech hub. Its future growth looks strong and it’s only a matter of time before it produces its next tech titan,” says Steve Harris, UK head of technology sector, SME & mid corporate at the Bank of Scotland.
Businesses looking to hire from overseas – BDO survey says
North West businesses are looking abroad to make key appointments as the talent crisis bites, especially in software and technology companies. A survey by accountancy and business advisory firm BDO of 500 business leaders revealed that 93% of companies in the North West are actively considering overseas hires. One in three will only do so where they have an office and 43% are looking to countries where they have a strong client base. With staff shortages the top concern of 27% of businesses, one in five leaders say they will consider creating roles anywhere in the world. Laura Burton, expatriate tax director at BDO, said: “It’s no surprise to see so many businesses in the region looking to create roles overseas. Companies choosing to recruit anywhere in the world are probably being driven by the issue of plugging skills gaps, particularly in certain sectors, such as software and tech. But she warned that organisations need to consider if there is a risk of “permanent establishment” from a corporate tax point of view and to check on whether a double tax treaty is in place as rules can differ from country to country.
Free cybersecurity ‘gap analysis’ offered by Scottish Business Resilience Centre
A free cybersecurity ‘gap analysis’ is to be offered via partners of the Scottish Business Resilience Centre – to help firms pass a nationally recognised cyber accreditation scheme. The analysis aims to help them pass their Cyber Essentials accreditation the first time, potentially helping them avoid applying a second time which could cost up to a further £500. From 4 January, 280 Scottish organisations can access the exclusive programme, which is available for organisations of all sizes and sectors until 17 February 2023. Its aim to equip firms with much greater levels of cyber resilience after recent National Cyber Security Centre figures showed there were 2.7m cases of cyber fraud in the UK over 2021-22. Jude McCorry, CEO of the SBRC said: “It is vital that organisations have their cyber resilience front of mind next year. Given the sharp rise in incidents and the often-devastating impact that a cyber-attack can have on an organisation, no one can afford to ignore their cyber processes and procedures. Achieving the Cyber Essentials certification is a simple way for an organisation to demonstrate how seriously it takes cyber resilience to its customers, stakeholders, and suppliers. NCSC figures show that on average 3.5 per cent of organisations fail the assessment each month, which can leave them out of pocket. This free support from SBRC and our trusted partner network will limit this failure rate by identifying gaps in cyber security procedures and provide advice to help organisations pass the certification on the first attempt.”