The New Reality
- an opportunity to reset the South East By Tim Rush, Office Senior Partner, KPMG in Gatwick
T
he “New Reality” is a phrase I hear often as we emerge out of lockdown and businesses not only try to comprehend the immediate impact of the crisis, but also how COVID-19 will change our economy over the longer term.
The lockdown has amplified two pre-COVID trends -
In terms of headline numbers, our recent analysis found that the South East would see 2020 GVA growth of -7.4%.
(2) Population dynamics, such as increased life expectancy, focus on health and wellbeing, and life-long learning to support multiple careers.
However, delving deeper into the numbers showed a mixed bag for our region with those economies most reliant on transport manufacturing, travel and international tourism likely to see the greatest economic damage this year.
What COVID-19 has done for our regional business leaders and policy makers has given them a new perspective and, possibly, an opportunity to reshape their operations in response to these trends.
(1) Technology developments – such as automation, data proliferation, industrial revolution 4.0 and the emergence of software as a service; and
tions collaborating in order for their businesses to operate. With digital strategies now taking centre stage, the innovation that sits with our startup and scale-up community will be vital to our success and it’s important they are showcased and introduced to businesses that could benefit from
Technology is the future Areas such as Crawley could see GVA growth fall to minus double digits this year, as the full impact of the crisis on airports and its supply chain take hold. But other places such as Reading, Worthing and Epsom will see growth fall by less than -5%, being least affected due to the prominence of pharma and professional services firms. Open for business? From issues around transport, a safe return to the workplace and employment, to technology and the survival of both small and large businesses, re-opening the South East presents some big challenges but also an opportunity to accelerate and address some of the key issues that have been holding the region back for years.
Most businesses had a digital strategy in play, but their ‘technology debt,’ as I like to call it, was high. This ‘debt’ is the underspend in technology that businesses have been going through over the last few years. And yet, the way in which technology has taken centre stage in recent months has accelerated the tech agenda. Businesses of every size and sector across the region are looking to work more effectively, embed more technology and become leaner as they return from lockdown. Digital channels will become key for engaging with customers, while automated processes will become a primary driver of productivity—and the basis of flexible and more efficient supply chains. During lockdown, we saw organisa-
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“Digital channels will become key for engaging with customers, while automated processes will become a primary driver of productivity”
