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 Donald Ward, operations director at Midlands-based metal recycling and waste management specialist, WARD.
There’s no doubt that we are living through some of the most turbulent times in recent history. The aftermath of the pandemic is bringing even more new challenges, with rising inflation and ongoing economic uncertainty.
There is a sense of getting through until the Christmas break, that everyone is ready for, and this is potentially providing a period of delay before tough times start in the New Year. Unfortunately, there will be some businesses that won’t survive and inevitably there will be some really challenging times ahead.
Energy costs are the major issue for business, with prices rising over 300% for most on 2021 levels. It is impossible to absorb dramatic rises like this without making costs savings elsewhere, in either labour or materials or operations. Ultimately doing more with less.
The energy crisis reduces margin and therefore any ability to make profit, and pushes up the cost of doing business for everyone. Once the Government removes the cap for businesses it will be telling. We are keen to see what additional support will be put in place, as businesses will fold and there will be job losses if Government does not step in, which will have a wide economic and social impact across the country.
Running businesses through Covid has taught us all resilience and those businesses that have been able to get through it have done exceptional things to stay on an even keel. Through investment and forward planning, we managed to secure the plant and equipment needed early on to support our growth plans for bulk metal recycling operations in 2023 and beyond, however, it is difficult to find the right people to support this growth.
There is a significant skills shortage post-Brexit and a shift in the available workforce. Like the rest of industry, we are short of qualified and experienced drivers. We also need to address the wider skills gap and the way that people want to work. We need less people with better skills who are willing and able to work on site. Employers need to look at flexible employment packages that fit around family life, rather than just providing a job.
As a business we are determined to remain positive and still have plans to grow our metal recycling sites and waste management service offering. We are also planning a programme of wellbeing and charitable activities to smash some goals in 2023 and keep the team momentum going.
