Business News Round Up (30/08/2024)
Cost-of-living crisis tops UK business risks for second year in a row
The annual Gallagher Business Risk Index has identified the top risks currently impacting organisations. For the second consecutive year, the cost-of-living crisis has been highlighted as the primary concern, with 32% of businesses ranking it as their top risk. This marks an increase from 21% in 2023, signalling a worsening situation rather than an improvement. Among the key reasons for the cost-of-living crisis being identified as the top risk are inflation, cited by 50% of affected businesses, unstable economic conditions (39%), and the lingering effects of Brexit (21%). Despite the UK leaving the EU four years ago, the survey revealed that many businesses continue to struggle with declining trade success. A shift in concerns among CEOs was also noted. Employee-related risks, such as retention, lack of skilled talent, and rising salaries, which were prominent in 2022 and 2023, have now dropped out of the top five risks.
Record job creation and investment driven by Scottish Enterprise
Scottish Enterprise delivered record performance during the last fiscal year, having worked with over 1,300 companies, aiding with growth and contributing significantly to the country’s economic transformation.The national economic development agency secured over 16,700 new and safeguarded jobs, including a five-year high of over 9,000 jobs from inward investors. Support provided to businesses last year also unlocked £1.9 billion of capital investment spend in Scotland, £2.15bn in planned exports, and over £449 million in business innovation investment. The news was unveiled as Deputy First Minister Kate Forbes and Scottish Enterprise chief executive Adrian Gillespie visited Symbiosis’ new drug manufacturing site in Stirling to announce a £4.3m Scottish Enterprise grant for the company. The funding contribution will help accelerate the growth of this ambitious scale-up business by doubling the company’s existing footprint in Stirling and creating 50 highly skilled new jobs over the next few years.
North West business confidence recovers with August uplift
Business confidence in the North West rose 20 points during August to 53%, according to the latest Business Barometer from Lloyds Bank Commercial Banking, making a recovery from July when confidence levels dipped by 10 points. During August, companies in the North West reported higher confidence in their own business prospects month-on-month, up 21 points at 60%. When taken alongside their optimism in the economy, up 20 points to 46%, this gives a headline confidence reading of 53% (vs. 33% in July). Looking ahead to the next six months, North West businesses identified their top target areas for growth as investing in their team, for example through training (45%), introducing new technology (41%), and entering into new markets (38%). A net balance of 45% of businesses in the region also expect to increase staff levels over the next year, up 25 points on last month.
Scottish factory output falls but optimism remains
Output and order intake among Scotland’s engineering companies have fallen for the first time in four years though there is an expectation of a recovery. Trade organisation Scottish Engineering said its latest survey shows firms remain optimistic for the ninth consecutive quarter. For the 14th consecutive quarter there is a positive intention to hire staff, though this is seen as a reflection of skills shortages, “a continuous and increasingly pressing issue for our members”. It adds that “the availability and impact of this crisis for our industry is one that desperately needs addressed”. Scottish Engineering chief executive, Paul Sheerin, said: “Whilst this quarter’s results are at best a mix of lower than expected actuals and more promising forecast, we remain firmly of the view that there is tremendous opportunity for our sector in the coming quarters and years from the many strands of infrastructure change and improvement.”
https://dailybusinessgroup.co.uk/2024/08/scottish-factory-output-falls-but-optimism-remains/