Chartered ONE Issue 31

Page 14

LSCA Business

North West businesses optimistic following challenges of 2021 Healthy sales and investment outlook despite labour market challenges The ICAEW’s Business Confidence MonitorTM (BCM) for Q4 2021 found that business confidence in the North West remains firmly in positive territory, despite the present labour market challenges. Domestic sales and exports have grown whilst customer demand remains a growing challenge. Domestic sales are 3.2% higher year-on-year in Q4 2021 which is in line with the national average. Exports have also recovered, rising by 1.9% over the last year, which slightly outpaces the national rate. And businesses anticipate much stronger rates of growth in the year ahead, as the recovery gains more impetus. Associated with the healthier demand environment, businesses have started to increase their headcounts. Year-on-year employment growth in Q4 2021 stands at 1.6%. A further 3.0% increase is planned for the year ahead, a near record rate for the region. In conjunction with this, staff development budgets are expected to rise at a similar pace to employment. And as the labour market recovers, so too should average total salary growth. After barely changing during the pandemic, companies plan a 2.9% increase over the coming year.

Q4

2021 14

Business challenges Businesses may also be planning to increase salaries to tackle some of the issues that they are dealing with in the labour market. Labour shortages are apparent as many companies try to recruit staff at the same time. Consequently, the availability of management and non-management skills have surged as growing challenges in the year to Q4 2021, with the former cited by 26% of companies and the latter by 38%. Both are record rates for the region since the survey began in 2004. Difficulties in recruitment are also reflected in staff turnover as a growing source of difficulty for 43% of businesses. This is also a record high for the region. Beyond labour market challenges, transport problems are also widespread, and a more pressing issue for 34% of companies. This is the joint highest rate since the survey began and probably reflects freight capacity constraints as demand surges, including a shortage of HGV drivers. It is also possible that businesses have had difficulties in adjusting to new Brexit-related procedures and border controls. Adding to these obstacles, regulatory requirements are more widely cited in the region as a growing challenge than elsewhere in the UK. Again, Brexit may be part of the explanation here. It is clear that there are still some significant challenges ahead, however businesses in the North West are well placed to capitalize and achieve substantial growth over the next year or so. We have fantastic breadth of expertise in the region around fintech, digital and manufacturing and it is time for the North West to take the lead and make levelling up happen.


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Articles inside

ICAEW - INFORMATION HUBS

1min
page 45

ANDY BOUNDS - CHRISTMAS QUIZ

3min
pages 42-43

OPUS

3min
page 44

DSG - OWNERS OF CRYPTOASSETS ASKED TO CONSIDER CGT

3min
pages 30-31

LIVERPOOL SOCIETY OF CHARTERED ACCOUNTANTS CELEBRATE NEWLY- QUALIFIED ACCOUNTANCY TALENT

3min
pages 32-39

ANDREW LLOYD - DO PEOPLE REALLY WANT TAX CUTS IF THAT MEANS POORER PUBLIC SERVICES?

2min
pages 26-27

JAN MCCORD - HOW LOCKDOWN CHANGED MY LIFE

3min
page 25

DSG -UK BUDGET – AUTUMN 2021 A STRONGER ECONOMY FOR THE BRITISH PEOPLE

3min
pages 40-41

THE CHARTERED ONE BIG INTERVIEW NIGEL LANCELEY

4min
pages 22-24

LIVERPOOL SOCIETY OF CHARTERED ACCOUNTANTS – EQUALITY, DIVERSITY AND INCLUSION

0
page 20

CHRIS WAINWRIGHT GENTLEMEN I GIVE YOU...

2min
pages 18-19

SMARTVAULT

2min
pages 16-17

DSG - SOCIAL CARE LEVY AND STATE PENSION BLOCK

2min
page 12

DSG -REDROW FOUNDER KEYNOTE SPEAKER AT LATEST DSG SPONSORED IOD EVENT

1min
page 13

NORTH WEST BUSINESSES OPTIMISTIC FOLLOWING CHALLENGES OF 2021

2min
page 14

DAVID CRADDOCK

9min
pages 9-11

ICAEW AND CIPFA - EXPLORING POTENTIAL FOR CLOSER WORKING

1min
page 15

REFLECTIONS FROM OUR EDITOR

1min
page 5

COODEN TAX CONSULTING ARE WE THER YET?

3min
pages 6-7

CHESTER TOWN MEETINGS

1min
page 2
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