It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.
It has become something of a tradition, given that we’ve been doing this now for over 30 years.
Here we speak to Andrew Macmillan, partner and office head of Gateley Nottingham.
The predicted decline in the UK economy for 2023/2024 will mean minimal growth. This will lead to companies restructuring to ensure they remain cost effective, while many may enter administration, leading to redundancies.
If instability continues it will become harder for businesses to make decisions on investments and they will hold off until the economy improves.
Unless a solution is reached in Ukraine, fuel and energy costs will unlikely improve. This will place many businesses, particularly those in hospitality and retail, under pressure and unable to survive, leading to job losses and having to close. Many retailers are moving completely online, which is more bad news for the high street.
Remote working is continuing post-pandemic. Employees have got used to the flexibility hybrid working brings and some businesses may consider a purely remote workforce, removing the need for expensive office space rent, rates and utilities. This is not good news for town and city centres.
Another knock-on effect is technology developments and an increase in usage of AI. Many businesses will develop solutions to enable automation of manual and routine workloads. Additionally, businesses would be advised to ensure they are familiar with the latest GDPR regulations and that they have good protection against cyber-attacks.
Last but not least, the UK labour market is likely to remain very tight, resulting in low employment and rising job losses. Many companies are implementing freezes on recruitment and the minimum wage increase will impact on the potential for pay rises and bonuses for employees.
