Business News Round Up (29/06/2023)
Foreign investment in UK to fuel job creation across the country
Billions of pounds into foreign investment in the UK is to generate thousands of jobs across the country, according to the Department of Business and trade. This foreign investment in UK aligns with the government’s emphasis on economic development and attempts to level up. New numbers made public today by the UK Department of Business and Trade show that over 80,000 jobs will be created by more than 1,600 foreign direct investment (FDI) projects in all parts of the nation. Notably, this increase in investment will result in large advantages for Scotland, Wales, Northern England, the Midlands, and the South West. With Yorkshire and The Humber obtaining 103 FDI projects and the resulting 7,378 new employment, Northern England has emerged as a centre of growth. This amounts to a notable rise of 97% from the previous year and a stunning 423% increase from two years before. In addition, 198 projects in the North West and North East areas are projected to create 8,867 employment overall. In just three years, 604 FDI projects have been recruited to the North West and North East, leading in the creation of 25,872 new UK employment.
Scottish skills gap stays high – Business Barometer Report
More than seven in ten Scottish businesses are struggling with skills shortages – but almost 40% don’t have programmes in place for underrepresented groups, new research shows. The annual Business Barometer Report from The Open University and British Chambers of Commerce finds most organisations in Scotland – 71 per cent – are continuing to report skills shortages. Engineers, IT professionals, social care staff, trades – including joiners and plumbers – and administration staff are the most in-demand roles in Scotland, the report shows. But Scottish businesses need to get better at hiring staff from underrepresented groups such as people with disabilities or workers from diverse ethnicities. The report finds 39% of Scottish organisations don’t have any initiatives, skills programmes, or workplace adjustments in place for specific talent pools like these. “Employers are missing out on the hidden talent pool and an opportunity to ‘grow your own’ talent,” the authors suggest. Particularly during a time when two in five Scottish organisations – 42% – say lack of applicants has prevented them from filling roles.
Latest business survey shows a slowdown in business prospects
Economic performance in Greater Manchester has declined slightly in Q2 2023 according to the findings of the latest Quarterly Economic Survey (QES) conducted by Greater Manchester Chamber of Commerce (GMCC). The headline Greater Manchester Index, a composite indicator made of key QES measures, decreased to 22.1 (30.3 in Q1 2023). The survey of nearly 300 businesses held between May 22nd and June 12th revealed that sales to UK customers decreased in all three key sector groups: services, manufacturing, and construction. Manufacturing sector businesses were reporting improved demand in Q1 2023 but that appears to have taken a turn for the worse in Q2 2023. Consistent with that decrease in demand, capacity utilisation and cashflow positions amongst manufacturing sector businesses have also fallen. Another worrying development is the downturn in international trade. Businesses in manufacturing reported that export sales and advance orders from overseas customers decreased in this quarter. In the services sector group, export sales increased but advance orders have declined. The survey results also showed a mixed picture in other important economic indicators such as business investment and business confidence. Businesses in all three sector groups reported that they were optimistic in maintaining their turnover, which indicates that they expect some stability in demand. Optimism that profitability can be maintained, however, has shown marginal decreases, a reflection perhaps of the fact that prices have been put up already and there isn’t scope to put them up further.
https://londonlovesbusiness.com/latest-business-survey-shows-a-slowdown-in-business-prospects/
More than 3,200 new Scottish businesses in May, R3 research finds
More than 3,200 new Scottish businesses were set up last month, according to new research from R3, the UK’s insolvency and restructuring trade body. R3’s analysis of data provided by Creditsafe shows that 3,280 new firms were set up in Scotland in May 2023 – 229 more than the previous month’s total of 3,051. Start-ups in Scotland also rose 6.5% year-on-year from May 2022’s total of 3,081 – the fourth highest yearly increase of all the nations and regions in the UK, falling only behind Northern Ireland (25.3% rise), Greater London (17.5% rise) and East Anglia (12.2% rise). Richard Bathgate, Chair of R3 in Scotland, said: “These new figures continue the impressive surge in start-ups we’ve seen so far this year – with numbers rising every month except for April 2023. “Scotland’s heritage in traditional sectors like construction and oil along with developments in digital and tech make it a great place to do business and it’s fantastic to see the country being so entrepreneurial.”