POLICYNEWS
OUTLOOK FOR 2021 The government policy over the last 12 months has been to provide economic support packages to help business survive throughout the Covid-19 pandemic. This has no doubt been a challenging year for many businesses across Herefordshire and Worcestershire. With the approval of three new vaccines, there seems to be light at the end of the tunnel. With new variants of Covid-19 being identified, the continued balancing act of public health concerns and reopening the economy proves to be a significant unwelcomed challenge for the government to navigate. 2021 remains a year for hope and optimism with three new approved vaccines and a new trade agreement with the EU, meaning businesses are able to plan effectively for the year ahead. The new trade agreement allows businesses to understand the red tape and regulations around importing and exporting goods and services in the EU. No doubt there will be many queries from companies as they get to grips with the new rules, however the clarity on regulation will be much welcomed from businesses. The approval of three Covid-19 vaccines means there is light at the end of the tunnel, and organisations can start to plan how their business can move forward as restrictions are slowly lifted. The easing of the restrictions will allow business the opportunity to trade with consumers again and help provide the economy the much-needed boost in helping to kickstart its economic recovery.
KNOWING YOUR MARKET Many businesses throughout the Covid-19 pandemic have had to change their products and services due to national
lockdowns, which has changed consumer behaviour. For example, online shopping has increased by over 50% in the last year alone according to the Office of National Statistics. The Covid-19 pandemic has accelerated the growth for online services, which we are likely to see continue to grow in 2021 and beyond. One way businesses can future proof is to ensure they know what the trends are in their sector and how customers are likely to buy their products/services in the future. As we have seen with retail businesses, they have struggled with national lockdowns due to no customers visiting stores which has meant they have to rely on online services in order to sell their products.
INNOVATION AND TECHNOLOGY As remote working was encouraged during 2020, businesses were forced to change the way they operate. 78% of businesses who responded to our Employment Survey 2020 adopted or increased use of at least one type of technology due to the pandemic. Being aware of the new technologies that are available and how they can be utilised to help a business reach their goals is another dway of future proofing.
With new variants of Covid-19 being identified, the continued balancing act of public health concerns and reopening the economy proves to be a significant unwelcomed challenge for the government to navigate. Business Direction published by Herefordshire & Worcestershire Chamber of Commerce
A McKinsey study showed that 67% of companies had accelerated adoption of artificial intelligence and automation due to the pandemic. To plan for the future businesses should ask themselves, how are production methods in their industry changing and is automation being used by their competitors? In our QES Q1 survey we are investigating the use of automation in the local area.
SKILLS The Covid-19 pandemic has highlighted inequalities of skill shortages within specific sectors and industries. For example, the hospitality and tourism sector has been hit the hardest by the Covid-19 pandemic, with 171,000 people losing their jobs due to the pandemic. However, the IT sector has seen an increase in jobs being advertised for skilled IT engineers, although accessing this labour pool proves to be rather difficult. There have been wider questions surrounding whether people who have lost their jobs are able to retrain in other fields. We found in our Employment Report that 28% of businesses were planning to use the Kickstart Scheme to employ young people.
CONCLUSION Underpinning all of these ways that business can future proof their business as they plan is consistent investment. Data from the QES has shown investment has remained at chronically low levels due to EU Exit and Covid-19 uncertainty. But as we move away from this uncertainty and start to recover from the pandemic businesses have an opportunity to increase investment in their business and thrive in the future.
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