Business News Round Up (28/04/2023)
UK businesses expecting exports to grow but barriers remain
British businesses are ambitious for international growth and see exporting as key to their success, according to new research released today from Alibaba Group, in partnership with Institute of Export and International Trade.The study of more than 3,000 UK businesses found nearly half (49%) of their annual revenue is generated from exporting goods overseas. Over seven in ten (73%) of business owners surveyed anticipate their export sales to increase in the next 12 months, with almost a quarter (24%) saying they expected a “significant increase” in sales. Beyond the economic benefits, the research indicates that these exporting businesses are also more resilient, with just over four in five (81%) saying exporting had made their business stronger. 82% of respondents said exporting had fuelled innovation within their companies, while 79% of businesses said they had increased their headcount as a result. Some 79% said exporting had relieved the pressure of doing business in the UK. When it comes to export markets, British businesses surveyed are looking close to home. Nearly three in ten (27%) regard the UK’s nearest neighbours in the European Union (EU) as their top export market. Looking to future growth, North America (30%), Asia (24%) and China (24%) present the biggest opportunities. Despite the positive outlook, many businesses that export or have exported in the past perceive challenges that could stand in the way of their export ambitions. Nearly a quarter (22%) cited supply chain and logistical issues as the biggest barrier, followed by increased paperwork and red tape (20%) and competitive pricing (20%). Economic uncertainty (19%) and lack of cultural awareness/familiarity with the overseas market (19%) complete the top five potential barriers to export.
Occupier demand for commercial property in Scotland rises for the first time in nearly a year
Occupier demand for commercial property in Scotland rose for the first time since Q2 2022, according to the latest Royal Institution of Chartered Surveyors (RICS) Commercial Property Monitor, however the industry continues to face a challenging environment. A net balance of +5% of respondents in Scotland said that occupier demand rose in Q1 2023, up from -14 in Q4 2022. There were reported increases in demand in the office and industrial sectors (net balances of 8% and 31% respectively). Although a net balance of -25% of respondents in Scotland said that occupier demand for retail space decreased; this is compared to -62% the quarter previous, and the least negative the figure has been in over a year. On the investor side, a net balance of -17% of surveyors reported an overall fall in investor enquiries. There has been a downward trend in investor demand for both office and retail space (net balances of -19% and -42% respectively). However, Investor demand for industrial property saw an increase through Q1, with a net balance of +11% of respondents reporting a rise. Both rent and capital values are expected to remain in negative territory though. A net balance of -16% of respondents in Scotland indicated that they expect net capital values to fall across all sectors over the second quarter of 2023, although remaining negative, surveyors seem more optimistic than in late 2022 when the same figure was -41%. Meanwhile, a net balance of -6% of respondents expects a fall in rents over the next three months. Both office rents and industrial rents are expected to rise over the next three months with a net balance of 6% and 29% expecting an increase respectively. Looking at retail, a net balance of -51% of respondents expect rents to decline.
North West business confidence levels maintained with recruitment main target
Business confidence in the North West fell one point during April, to 34%, according to the latest Business Barometer from Lloyds Bank Commercial Banking. Companies in the North West reported lower confidence in their own business prospects month-on-month, down one point at 34%. When taken alongside their optimism in the economy, down one point to 34%, this gives a headline confidence reading of 34%. North West businesses identified their top target areas for growth in the next six months as investing in their team (42%), investing in sustainability (35%) and diversifying into new markets (28%). The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide. A net balance of 33% of businesses in the region expect to increase staff levels over the next year, down 12 points on last month. Overall, UK business confidence climbed one point to 33% in April. Every UK nation and region reported a positive confidence reading and six out of 11 regions recorded a higher reading than last month. London reported the highest levels of business confidence at 47% (up nine points month-on-month), followed by East Midlands (up 18 points) and North East (up three points), both at 41%. The outlook by companies on their own trading prospects remained strong at 39% for the second consecutive month, and a net balance of 27% of businesses are intending to increase their staff levels, up two points on March.
80% of Scottish businesses are ‘currently exporting’
Scottish businesses are ambitious for international growth and see exporting as key to their success. New research released today from the Institute of Export and International Trade and Alibaba Group UK has revealed that 80% of Scottish businesses are currently exporting. More than three quarters (77%) of the business owners surveyed also expect their export sales to increase in the next 12 months, while nearly a third (30%) expected a ‘significant increase’ in sales. A further 79% of businesses in Scotland said exporting had boosted their revenue, with the same amount stating that exporting had made their business stronger and 81% said exporting had fuelled innovation within their companies. Just over three quarters of those surveyed had increased their headcount as a result of exporting, with 79% stating that it had relieved the pressure of doing business in the UK. Scottish businesses cited China as the market which presents the biggest export opportunity (29%), followed by North America (29%) and the Middle East (28%). The European Union, meanwhile, was identified as one of the markets with the least export potential (22%).
https://www.insider.co.uk/news/80-scottish-businesses-currently-exporting-29825313