British businesses investing in 2022
According to research carried out by consultancy Deloitte, the UK’s top firms will massively increase capital spending in the next 12 months, with over 30% of chief financial officers (CFO) at Britain’s premium listed firms scaling investment to capitalise on red hot domestic and foreign demand.
Deloitte surveyed 85 finance chiefs at firms which have a combined market value of nearly £500bn, representing 19% of the entire UK stock market.
CFOs seem to be looking past Omicron and plan to focus their businesses on growth in 2022, with 90% intending to expand their technological capacity in a sign that the productivity gains made by the rapid adoption of digital tools since the onset of the pandemic are set to continue.
Finance chiefs expect their gamble on investment to pay off, with some 84% forecasting it will yield productivity enhancements.
This is certainly an approach that we have taken, and plan to continue taking, over the foreseeable future with many initiatives and huge investment in our digital platforms. Embracing the latest technology, we continue to design, develop, create and deliver new and enhanced internal and external systems and applications.
And firms are more optimistic about operating in a post-Brexit environment. Worries that dominated the risk list in recent years – above all Brexit and weak global growth – have dropped sharply down the risk rankings.
However, Deloitte’s research indicates businesses are under intense pressure to survive amid a barrage of soaring costs and an ongoing labour squeeze, with 54% highlighting inflation as a key risk to their businesses’ performance, while 58% are concerned over persistent worker shortages.
Optimism dipped over the last month, driven lower by the threat of inflationary pressures and the hit to consumer confidence from plan B restrictions to curb the spread of Omicron.
At the same time, UK manufacturing supply chain disruptions eased in December, helping activity in the sector to expand at the fastest pace in four months. A positive indication of things to come in 2022.
Supply chains remain severely stretched, but the situation is stabilising, with vendor delivery times lengthening to the weakest extent for a year in December, which helped take some of the heat out of input price increases, and raise output across the consumer, intermediate and investment goods sectors during the final month of 2021.
The increased output was underpinned by rising intakes of new business as domestic market conditions strengthened.
With so much negative news abounding, it is heartening to see a positive business survey, that confirms some of our biggest firms will be investing for growth in 2022.
We certainly intend to continue our development, expanding our team, investing strategically and working with our network partners to grow our service portfolio globally.
Whatever your objectives are for the year ahead, we are ready to support you too, with supply chain solutions, that are designed around you and your operating environment.
We grow with our customers, by investing in our relationships and strategic partnership approach and consistently delivering the support that keeps them successful.
We continue, as always, to keep you updated on the current market conditions and situation and we will always have the latest news and best advice in the global logistics and supply chain environment, which is operating under new parameters in the ‘new normal’ world. Please do call us to arrange a meeting and discuss your own plans for 2022 and beyond and we will ensure that a tailored solution is designed that will ensure your business can continue to grow consistently.