The UK is set for economic “bounce back” post covid
After the year that never was, it appears that United Kingdom PLC has opened its doors and is ready for business, and just about all reports indicate it’s going to be a very, very good turnaround.
The British economy is said to expect a boom not seen for more than 70 years, according to this report from the BBC, but it’s hardly going to be smooth sailing and businesses that are prepared to evolve and adapt the most to our “new normal” are more than likely going to be the businesses that thrive.
Key growth areas are expected to be in travel and tourism as infection rates drop and widespread acceptance of various Covid-19 vaccines take effect. But economists are also expecting record growth in retail, manufacturing and in some sectors of the construction industry too.
Furthermore, consumer activity is recovering throughout the United Kingdom but rapidly in England and this leading to an upswing in logistics solutions providers and delivery giants like Amazon, and as consumer confidence returns to market places, so does growth return to all of the associated industries that supply the suppliers.
“Recovery will not be linear or uniform, and the paths of different economic sectors and businesses could diverge dramatically.” – McKinsey
There is every reason to be hopeful and responsible businesses are already looking at new alternatives and opportunities that the pandemic has rendered as normal. Online shopping for a wide range of items and not just groceries or clothing for example.
As greater liquidity returns to marketplaces as well, so too does the establishment of new businesses that operate outside of traditional brick and mortar offices and while companies are waiting for new purpose-built premises to be delivered, many hire or buy modular buildings, and it’s this sort of necessity that’s also reawakening industries that all but shut down or closed up shop completely during extended national lockdowns.
With all of this fresh new activity in the British economy, predictably logistics service providers and transporters are also enjoying something of an upswing in demand with freight and logistics expected to register a modest but respectable 2.5% growth.
Still, it’s not all good news and many challenges persist. There is a stubborn rise in company insolvencies as government support is starting to reach its endpoint and there is as yet a clear strategy as to which businesses may yet qualify for ongoing or additional lines of credit of government-backed assistance programs. It’s been a year that many of us would just as soon forget, but it is also a great time to take some stock and realise that some of our best lessons don’t always come from our success stories but also from our failures and challenges and there is an increased incentive across Britain for local businesses to establish referral networks and programs where local businesses can network, share knowledge and advice and of course, provide referrals to and for each other.
By far the biggest “industry growth” in the UK so far this year has been in supermarkets, with this section of the economy easily outstripping its next competitor – pension funding. The game may have changed somewhat, but many of the old rules stay the same, for businesses that evolve with and embrace the change around them, therein lies the potential for exciting future success.