UK businesses battle disruption and inflation

As businesses get into the swing of a new year, many external factors loom over several industries as businesses are feeling the pinch of increased costs and disruption.

Current figures show inflation at 10.5% in December, a decrease from 10.7% in November. Despite the drop many products and costs are expected to rise over the year as several factors affect the global marketplace.

One of the biggest subjects facing the UK workplace at the moment is wages, with costs increasing and salaries remaining stagnant in several sectors for the past ten years, many workers are questioning their income more and more.

Despite wages increasing at the fastest rate in over 20 years, earnings are still failing to keep up with rising prices. On top of that, public and private sector pay is at a record high, leading to much of the current strike action taking place in the UK.

Increases in costs have largely been attributed to the cost of energy, alongside the ramifications of the conflict in Ukraine, and the continued effects of the Covid-19 pandemic.

Another potential contributor to inflation and the UK’s economic problems is Brexit, a word the UK government and press is hesitant to use. With the pound weakened since leaving the EU, and imports/exports costing businesses more, Brexit is slowly taking a toll on the way the UK operates.

Paul Galligan, chief executive officer at Bionic, says: “Brexit is of course a hot topic for any business in the UK, and means uncertainty around all business costs. Business energy is no different.

“Reports highlight some of the causes of these likely rises and only goes to strengthen the case for switching (energy supplier) soon for longer fixed term tariffs, securing rates for your business before they become too volatile.”

Bionic, a supporter of small to medium size enterprises (SMEs) through various switching services, has become even more relevant now that businesses are weighing up the ways in which they work.

Advising on the way SMEs can navigate the current situation, Bionic content manager Les Roberts says: “Increasing costs are not necessarily all bad news. You could see a surge in sales, particularly if inflation becomes long-term. This is because consumers might buy goods and services now rather than waiting over time and risking higher prices.”

The issues surrounding employment and overseas workers are also worth noting when looking at how businesses are navigating the changing landscape.

An aging workforce, especially within signage and its associated sectors, means businesses are facing more common circulation of workers, and a shortage of skills that in the past could be filled by foreign workers.

Experts in coding and industrial printing, Domino Printing Sciences, have frequently monitored issues regarding inflation and employment in order to best serve the industry.

Speaking about automation’s role in an inflation-stricken market, Andy Barrett, services director at Domino, says: “Worker shortages are taking their toll. A retiring baby boomer generation and major disruption to labour forces during the pandemic, sometimes referred to as “The Great Resignation”, has led to global labour market gaps.

“Employers struggling to fill jobs are forced to increase salaries, further exacerbating price increases.”

In order to best respond to these challenges Barrett explains that businesses need to ensure that their workforces concentrate on value-added activities that most benefit the overall business goal.

“Businesses should assess what activities are performed and how and look for options to automate activities that don’t require human operatives,” says Barrett, concluding:

“Automation can also free employees to train or upskill in certain work areas. Companies must think about how best to attract and retain talent in a restricted labour market. Companies that provide options for upskilling, improvement, and progression will inevitably deliver more value as employers and will be more successful in retaining existing employees and attracting new ones.”

Currently big and small businesses are contending with the struggles of attracting new employees and remaining competitive within the marketplace. Wide-format print and signage companies continue to face this hurdle as well as feel the effects of public workers going on strike.

With disruptions in transport and mail, commuting and implementing day-to-day work is becoming more difficult. News that the government is looking to take radical measures to restrict strikes, means workplace tensions are not looking to end anytime soon.

Both the issues of energy prices and employment will take time to improve, requiring a combination of work from businesses and government. SignLink will continue to monitor the challenges facing businesses as 2023 unravels.

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