Business News Round Up (22/06/2023)
New report on the future of hospitality in Scotland
In 2021, one in 14 jobs in Scotland was in the food and accommodation service sector, adding around £1.3 billion to the Scottish economy quarterly. Yet, average pay in the hospitality sector is significantly lower than the Scottish average – in fact, accommodation and food services has the lowest median hourly pay of any industry, at £10 in 2022. Across all sectors, the Scottish median hourly wage was £15 for the same time period. Pre-pandemic, we published a report showing that hospitality workers were more likely to be in working poverty than workers in other industries. Children living in a household with at least one adult in hospitality were also significantly more likely to be in poverty than other households in Scotland. Hospitality is also an extraordinarily difficult industry for business owners and operators. We found that food and accommodation services lost the highest proportion of revenue compared to other industries during the pandemic, on top of already having relatively low profit margins. Hotels and restaurants also struggle to fill job vacancies, with data showing that around 30-35% of hospitality workers change employers annually – around twice the rate of other industries. This can add thousands of pounds to a company’s bottom line annually.
Third monthly fall in level of North West firms behind with their bills
Research by insolvency and restructuring trade body, R3, shows a third consecutive monthly fall in the number of North West companies behind with their bills. The figures, based on data from Creditsafe, shows that in May there were 53,831 businesses in the region with overdue bills which they had yet to pay – three per cent lower than in February. Meanwhile, the number of North West businesses which were, themselves, awaiting payment on outstanding invoices, fell by 3.5% during the same period, to 548,716. The figures also show that the rate of new business creation in the North West is running ahead of last year. Between January and May this year, 33,935 new businesses were set up in the region – five per cent higher than in the same period last year. R3’s North West chair, Fran Henshaw, said: “In a tough economic climate, late payment is yet another problem for businesses to deal with on top of rising inflation and interest rates. Therefore, it is good to see some improvement in the situation. We would urge all firms to keep on top of their bills as creditors are now taking a tough stance with late payers, and businesses which are, themselves, owed money should tighten up their credit control procedures to protect their cashflow.”
Ground-breaking NMIS facility paving the way for the future of manufacturing in Scotland
The National Manufacturing Institute Scotland (NMIS), operated by the University of Strathclyde, has today opened its new world-class, flagship facility at the heart of the Advanced Manufacturing Innovation District Scotland (AMIDS) in Renfrewshire, aiming to be a major stimulus for the country’s economy, skills development, and prosperous, sustainable communities. Acting as a magnet for advanced manufacturing in Scotland and across the globe, the distinctive heather-coloured, 11,500m2 operationally carbon neutral campus next to Glasgow Airport will support manufacturing, engineering, and associated technology businesses of all sizes. Innovative R&D will help them to become more productive, tap into emerging markets, embrace new technologies, and achieve net-zero targets. Scotland’s manufacturing sector employs over 179,000 people and is responsible for more than 50% of the country’s international exports and 47% of business expenditure on R&D. The new facility will be home to the NMIS Manufacturing Skills Academy, fully connected Digital Factory, and publicly accessible collaboration hub. The Lightweight Manufacturing Centre (LMC) – which is also part of the NMIS group – will relocate from its current base in Renfrewshire, splitting its operations between the new building and NMIS’s founding centre the University of Strathclyde’s Advanced Forming Research Centre (AFRC).
City centre offices sold in deal worth £18m
Two prominent office buildings in Glasgow have changed hands for just over £18 million, in two of the city’s biggest deals this year. New Amsterdam Invest N.V. has acquired 2-4 Blythswood Square for £9 million and Sutherland House on St Vincent Street for a further £9.05 million. Currently the Scottish headquarters of Chivas Brothers, 2-4 Blythswood Square is a Grade B-listed prime office building at one of Glasgow’s most prestigious addresses. It consists of 27,125 sq. ft. of office space spread over five floors. Sutherland House is located in Glasgow’s central business district and includes Murphy Wealth, law firm DAC Beachcroft, and recruiter Michael Page among its occupiers. The Grade B-listed building totals 39,378 sq. ft. of office space over nine storeys and has been extensively refurbished in recent years. Knight Frank acted for New Amsterdam Invest N.V. on the purchase of 2-4 Blythswood Square and for the vendor – BMO/Columbia Threadneedle – on Sutherland House.
https://dailybusinessgroup.co.uk/2023/06/city-centre-offices-sold-in-deals-worth-18m/