BUSINESSNEWS
Optimism Rising
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UK MANUFACTURERS are more optimistic about their business situation and exporting prospects, while reporting strong growth in domestic orders over the previous quarter, according to the latest quarterly CBI Industrial Trends Survey.
The survey of 461 manufacturers reveals that the volume of domestic orders rose at the fastest pace since July 2014 in the three months to January, while export orders continued to grow, but below expectations. Headcount edged higher having dipped for the first time in more than six years in the last quarter.
Demand is expected to grow strongly over the next three months, driven by both domestic and export orders, while production is also expected to advance briskly – expectations for output growth are also the highest since July 2014.
Concerns persist over access to skilled labour, however, with almost a quarter of respondents – the highest since July 1989 – observing that skilled labour availability could limit output over the next few months.
Sterling’ s depreciation continues to impact prices as unit costs rose at their highest pace in over five years, amid expectations that this will intensify over the next quarter. But on the flip side, manufacturers continue to see the competitive benefits arising from sterling’ s weakness, reporting a further strong rise in competitiveness within the EU and putting the rise in competitiveness in non-EU markets at a survey high.
The pick-up in output has meanwhile eaten into spare capacity, pushing the proportion of firms citing capacity expansion as an investment driver to a survey high. Firms are planning to increase investment in product & process innovation and training & retraining over the year ahead at the fastest pace in two years, while investment plans for building and plant & machinery have moved back above their long-run averages.
Rain Newton-Smith, CBI Chief Economist, said:“ UK manufacturers are firing on all cylinders right now with domestic orders up and optimism rising at the fastest pace in two years.
“ The weaker Pound is driving export optimism for the year ahead, but is having a detrimental impact on costs for firms and ultimately for consumers.
“ The new Industrial Strategy can support our manufacturing base by offering a shared longterm vision for the key sectors and regions of the economy and evidence-based plans for government and business collaboration.”
Golden opportunity to go Purple
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UK BUSINESS HAS A GOLDEN opportunity to access the £ 212bn annual disability market through the Government’ s Disability Confident scheme, according to disability equality champion Mike Adams OBE.
The Chief Executive of not-for-profit organisation Purple says the Government’ s re-launch of its Disability Confident scheme is providing businesses with the opportunity to relook at disability differently and help them access the disability market, or‘ Purple Pound’, which is worth £ 212bn a year to the UK.
The Disability Confident scheme aims to support the government’ s overall strategy to reduce the disability employment gap. It has been running since 2013 and was re-launched by the minister for disabled people Penny Mordaunt MP last November.
However, ahead of the re-launch Purple carried out research revealing almost a third of businesses( 29 per cent) are uncertain about how to become involved in the scheme while a further 30 per cent have not yet heard of it.
Chief Executive of Purple, Mike Adams, said:“ It’ s unacceptable that in 2016, being disabled makes you twice as likely to live in poverty. Just 49 per cent of the UK’ s 11.5m disabled people are currently in work, compared to 82 per cent of non-disabled people. This has a real impact on the quality of life of disabled people, as well as on the British economy, which is providing financial support
rather than receiving incoming funds through taxable earnings.
“ Business is finally starting to realise the benefits of having a diverse workforce with the‘ Purple Pound’ in the UK worth £ 212bn a year. The re-launch of Disability Confident is a golden opportunity for business to become Purple and access this lucrative market through inclusive employment strategies.”
Purple’ s research previously found almost half of UK businesses( 45 per cent) are apprehensive about hiring someone with a disability because of fears they won’ t be able to do the job.
It is now working with business to combat these misconceptions and develop inclusive employment strategies.
Purple also simultaneously works with disabled people offering employment support, as well as a specialist recruitment portal matching skilled disabled workers with employers. The organisation aims to help more than 20,000 disabled people to find permanent jobs over the next decade.
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