Business News Round Up (24/04/2020)
Coronavirus brough office market revival to a halt, says CBRE
New figures revealed the office markets in Edinburgh and Glasgow experienced a positive start to 2020 before the Coronavirus outbreak, according to real estate advisor CBRE. Take-up in Edinburgh during the first quarter saw a significant increase on the previous quarter – rising 35% to 130,640 square foot. Although 32% below the five year average of 193,603 square foot for Q1, this can be partly attributed to shortage of supply across the market which continues to squeeze headline rents and incentives. In Glasgow take-up for the city centre office market was down on recent years at 89,388 square foot for the first quarter of 2020. The largest transaction to complete was insurance firm Sedgwick’s letting of 18,268 square foot at Ardstone Capital’s Sentinel building.
https://www.insider.co.uk/news/edinburghand-glasgow-offices-marketshad-bounced-21914231
North West economy faces huge virus impact, but will bounce back in 2021
Business advisory firm KPMG has identified the North West as among the top four regions of the UK to face the biggest economic impact of the coronavirus outbreak, behind the West and East midlands and the East of England. The North West, which relies on the manufacturing and construction industries, is predicted to contract by 9.5% in 2020, However, based on current forecasts, is expected to increase 10.6% in 2021.
KPMG forecasts 8.1% hit to Scotland’s economy in 2020
Business advisory firm KPMG is forecasting negative Gross Value Added (GVA) in Scotland of 8.1% in 2020 as the economic impact of Covid-19 becomes clearer. The analysis, which is based on the sectoral makeup of Scotland, predicts a significant drop this year, followed by a potential GVA growth in 2021 of 9%, assuming public health measures bring the pandemic under control by next year. KPMG predicts Edinburgh and the surrounding areas are likely to be hit hardest as it has the highest level of exposure as a result of high levels of dependence on the tourism and hospitality sectors, with spending by foreign tourists accounting for around 3.4% of the city’s economy.
https://www.scottishconstructionnow.com/article/kpmg-forecasts-8-1-hit-to-scotland-s-economy-in-2020
New international support for region’s MedTech companies
Small firms and start-ups developing medical devices in Greater Manchester have been boosted by a new and fully-funded support programme. The transnational MATMED programme is supporting Manchester MedTech firms to innovate with advanced materials for medical applications and aims to bring healthcare innovations to market more efficiently through facilitated international collaboration. GC Business Growth Hub, part of The Growth Company, is one of 10 partner organisations delivering the programme across Europe.