QA – All about British Business & Enterprise interests.
Welcome to our business and enterprise blog, please note that this site is in no way affiliated with the official Queens Awards – This can be found at: https://www.gov.uk/queens-awards-for-enterprise. This Website caters for all things business related in the UK, so be sure to check back regularly for the latest articles.
2015 was the year for British Businesses – more starups than ever before
With all of the political turmoil going on at the moment you would be forgiven for thinking that British businesses are having a tough time, this couldn’t be further from the truth. The latest statistics for 2015 show that overall a massive 580,000 new businesses were created in the UK and 2016 is set to continue this trend, with analysts predicting more than 600,000 new businesses are going to be registered.
After a call back in 2011 by the government to make Britain an enterprise friendly country by the government, a number of organisations and incentives were set up to answer this call and it appears that this is having an ongoing effect. The groups were tasked with raising awareness of and encouraging the less traditional route of entrepreneurship in the UK in whatever form that takes.
The tech sector leads the way for new businesses
These days we can hardly go a day without hearing about the latest piece of newly developed technology or the latest app made on British shores. The tech industry has experienced a major boom globally and the UK is set to capitalise on this in Europe with London widely being regarded as the place to be if your a technology company based outside of Silicone valley in the US.
It’s not just technology companies that are leading the way for new businesses though, there are all manner of industries that are seeing something of a rennaisance whether this is in the catering industry, wallpaper, arts and crafts and various other sectors of the service industry.
UK Manufacturing businesses grow in 2016 – but still a long way to go
Early indications in 2016 show that despite all of the recent political turmoil, manufacturing may well be up in 2016. This news is particularly encouraging for the economy as a whole as a strong manufacturing sector in general indicates a growth in the UK’s economy which although not at it’s former glory, still relies heavily on it’s skilled manufacturing sectors.
Withing manufacturing sectors and businesses, there is quite a wide array of statistics however. Textiles such as wallpaper saw a massive boom in the early quarter of this year driven in part by cheap wallpaper prices due to a fall in costs of raw materials and other commodities in required during the manufacturing process. While cheap wallpaper may well be fueling growth, other similar textile manufacturing sectors saw a growth, in particular the demand for luxury clothing grew, bucking the trend of recent months.
Productivity remains a concern for the UK in general
While it’s certainly great news that manufacturing is doing well in certain sectors, the picture isn’t quite as rosy when we look at thing like productivity. A recent survey found that just 21% of business surveyed has carried out a major project in the last 6 months which is a slightly worrying statistic. If other industries were to take note of the manufacturing sectors success and indeed themselves manage to lower the price of their goods in a similar fashion to discount wallpaper, then they too would perhaps see the same growth levels. These figures may see a boost in the near future however due to the introduction of work place automation, though this may initially come at a cost of employment in general which we’ve written a number of articles on.
Sentiment in the manufacturing industry remains high however, around 85% of business’s surveyed say that they are optimistic about future prospects and are confident about investments in the UK.
The commercial dishwasher and catering industry leads the way in 2016
The aftermath of Brexit has left many industries with a great deal of uncertainty, the industrial sector has been waiting with bated breath to see how the industry emerges after the dust has settled from such a landmark decision for example. One unlikely industry sector that has see net gain from the UK’s decision to leave the EU is the catering industry.
Figures released so far in 2016 suggest that restaurants, bars, cafes and other commercial catering establishments have actually gained from a falling pound and the knock on effects that this has had on peoples’ spending patterns. It’s not just the commercial catering industry that has gained either, companies responsible for for supplying them such as catering equipment suppliers, commercial dishwasher manufacturers and other suppliers have all seen a boost in profits.
As with anything in economics however, it’s not simply as ‘cut and dry’ as saying that if you’re an industrial dishwasher manufacturer for example, then you’re going to benefited simply because you’re in the right industry sector. Companies that have seen the least gains or potentially losses from a weakened pound are those with international exposure e.g those that rely heavily on importing from the EU.
How should catering companies and commercial dishwasher suppliers capitalise on these trends?
There’s no one answer for how companies who have perhaps been left behind due to their reliance on importing form the continent, however some economists are suggesting that there is an increasing trend for domestic companies and manufacturers looking to source their good in the UK rather than abroad. Should this continue this could be a sizeable gain for the UK economy, though naturally raw materials and good still need to be imported by suppliers.