Business News Round Up (25/07/2023)
UK business confidence remains strong as firms boost AI investment
UK businesses are optimistic about their prospects in the coming months, as they hope to see investments in new AI technology pay off. But confidence has still declined over the first half of the year – amid global uncertainty as economic growth remains sluggish around the world. Accenture and S&P Global have polled 12,000 businesses across Europe, including 1,400 in the UK, to weigh up the expectations of firms for the immediate future. Despite inflation still being at historically high levels, an economic slowdown pervading across many large economies, and geo-political tensions still high around the world, companies are relatively optimistic. At the end of 2022, the researchers had found business confidence in the UK to be its lowest since 2009 – a positive score of just 18%. Since the turn of the year, however, growing hype around the potential of AI technologies has boosted confidence significantly. In the first quarter of 2023, this saw net positivity of roughly 43% – higher than levels seen in 2019. Three months on, UK firms are still more confident about the future than their European counterparts, where optimism is net positive at 19%, while the global average is a 28% positive. However, there are signs that some hopes that AI investments could offset inflation concerns are fading, though. Positivity remains high – at 40% – but has declined by three points over the second quarter of 2023.
Amazon seeks to super charge the growth of small businesses in Greater Manchester with the launch of a unique accelerator programme
Amazon is taking small businesses in Greater Manchester and surrounding areas inside their state-of-the-art robotics fulfilment centre in Bolton to show first-hand how they innovate. The Amazon Innovation Accelerator, launching this week, draws together expertise from Amazon, Amazon Web Services, The Growth Company and Made Smarter. Together they will deliver a series of free workshops and mentoring sessions to kick start growth in the businesses involved, and productivity in the region. The initiative provides a unique opportunity for small businesses to see in person how Amazon embraces new technologies and applies innovation to scale up. The fulfilment centre is emblematic of how Amazon streamlines processes, improves safety, and increases efficiency with robotic automation taking over certain duties, allowing employees to focus on more rewarding and engaging work. The adoption of robotics across Amazon’s operations has created new roles within the company to support this technology, which tangibly demonstrates the positive impact it can have for employees and for the workplace. Against this backdrop of a collaborative, automated environment with humans and robots, the workshops will feature expert insights and practical advice from Amazon’s own team on a range of topics that are instrumental to boosting business’ growth and productivity prospects including technology adoption, leadership, and management, all of which are central towards boosting business’ growth and productivity prospects.
UK job support system failing underemployed and economy, says report
The punitive approach and poor quality of the UK’s job support system is holding back a workforce recovery that is badly needed to boost the economy and bring down inflation, according to a report published on Tuesday. As the population ages, UK employment is set to grow at less than half the pace seen in the two decades to 2020, with 3.4mn fewer people in work by 2040 than if previous trends had continued, analysis by the Institute for Employment Studies and abrdn Financial Fairness Trust found. The research consultancy and charity said this made it even more important to help people on the sidelines of the labour market into work, and more productive jobs. The UK is almost the only country in the rich world where there are still more people are out of work, and fewer employed, than before the pandemic. Widespread labour shortages have contributed to rapid wage growth, which is making it harder for the Bank of England to reduce inflation from 7.9 per cent to its 2 per cent target. Although the government is increasing efforts to help older people and those with health conditions find and stay in work, the report said more fundamental reforms were needed to a system that primarily polices benefits claimants rather than helping jobseekers find the right role.
https://www.ft.com/content/b0475629-256a-4f69-b927-95c0861d6f36
Building society invests more than £45m into Scotland’s tourism sector
Scotland’s tourism sector has faced increasing adversity in the last few years. The pandemic saw tourism nationwide face significant pressures and the recovery from this has been hampered by the cost-of-living crisis. Meanwhile, rising interest rates, increasing from 4.5 percent to 5 percent in June, are putting Scotland’s hospitality businesses under further pressure as they cope with the prospect of higher mortgage repayments. Tourists have tightened their purse strings with a more cautious approach, and an unclear ending to the crisis brings further difficulties for those in Scotland’s tourism sector who are looking to weather the storm. Indeed, the latest statistics from Scottish Tourism Alliance reveal more than half, some 52 percent, of businesses within the hospitality sector are still in ‘survival’ or ‘consolidation’ mode as a result of the financial crisis. Meanwhile, almost half state that they do not have enough cash reserves for the next quarter, whilst 39 percent said that domestic bookings for June to September this year are lower compared to the same period in 2022.