Business News Round Up (22/10/2024)
Construction optimism curtailed by ongoing skills shortages
Construction vacancies have rebounded to levels seen last year as optimism grows, however, progress could be curtailed by ongoing skills shortages. That’s according to the latest research from the Association of Professional Staffing Companies (APSCo). The data, provided by Veritone Hire, revealed that both permanent and contract vacancy numbers have rebounded to similar levels noted in 2023 after a turbulent 12 months. This is in line with research from S&P Global which found that the construction industry grew at its fastest pace in two-and-a-half years in September. However, this positivity is set to be hindered by the ongoing and worsening skills shortages in the industry. According to APSCo’s data, applications for permanent and contract positions declined by 35% and 41% respectively between September 2023 and September 2024, despite the recruitment bounce back.
Number of North West firms in significant financial distress rises by almost a third – Begbies Traynor
More than 65,000 firms in the North West region are operating under significant financial distress, according to new data from Begbies Traynor, a 32% increase on the same time last year. Distress levels jumped in 20 of the 22 sectors analysed in the North West over the last quarter with the largest leaps seen in Food Retail (14%), Bars and Restaurants (11%) and Hotels & Accommodation (11%). A quarterly increase in significant distress of 4% was reported, lower than the previous quarterly jump of 8% in a small ray of light for the region. Just four key sectors of the North West regional economy account for almost half (48%) of all businesses in significant distress. Construction (9,338 firms in significant distress), Real Estate and Property (6,722), Support Services (10,063) and Professional Services (5,213) indicate challenges ahead not just for firms in those sectors but those in their supply chain.
Scotland looks East with new trade envoy
The Scottish Government has appointed Stephen Baker as the country’s first Trade Envoy to Japan, hoping to secure more international investment. Announcing their pick today, the government said that Baker will identify new opportunities in Japan’s energy, pharmaceuticals, med-tech and food sectors. Baker, who spent 21 years with Sony before joining Scottish Development International in 2006, will spend two years in the unpaid Japan Envoy role. The government hopes that by strengthening ties to Japan, Scotland can take advantage of the country’s financial and technological sectors to boost its own efforts in developing renewable and green technologies, fintech, biotechnology, and the food and drink trade. Japan is becoming an increasingly important export market for Scotland, though as the latest trade figures show, the only Asian country currently breaking the top ten export destination for Scottish products is Singapore, accounting for £800 million in exports.
https://www.digit.fyi/scotland-looks-east-with-new-trade-envoy
Made Smarter powers SME manufacturers to invest £25m in technology
Made Smarter, the movement accelerating the digital transformation of SME manufacturers, has reached a major milestone – backing North West companies to invest £25m in new technologies. 330 businesses have now secured £7.1m matched funding from the government-funded, industry-backed initiative over the last six years, adopting technologies as diverse as sensors, robotics, 3D printing and artificial intelligence (AI). These companies have put £18m of private sector investment towards 379 technology projects which are forecast to create over 1,700 new jobs – an average of five each and upskill 3,200 existing roles – almost 10 per business. What is more, the investments in technology and people are set to add £267m to the economy over the next three years. In Greater Manchester, these include 96 companies who have invested almost £7.1m into 107 projects, creating 492 new jobs and upskilling 1,032 roles, while boosting the county’s economy by £78m.