GC Business Survey

Latest report: 2 July 2024

The full GC Situation Report contains detailed data on the economy, and results of the GC Survey and Business Confidence Index. It also provides headline data for local authorities in Greater Manchester.

Download the latest full GC Situation Report here .

Download the report infographic here.

GC SITUATION REPORT AND BUSINESS SURVEY RESULTS

The latest survey results shows Business Confidence Index (GC-BCI measures businesses' confidence in future growth prospects), currently at 7.3 out of 10. However, it's higher than average for Engineering and Construction. Sales saw an increase, with only 23% reporting
increased sales, but 64% anticipate profit growth in the coming year.

Investment intentions are up, with 38% planning to increase capital expenditure, especially in Manufacturing, Digital, Green tech and Retail sectors. Workforce development is a priority, notably in Manufacturing, Healthcare, Business and Financial Services, Digital, and Services.
Rising costs remain a major concern, along with cashflow issues, sales and supply chain disruptions. Despite challenges, many firms have sufficient cash reserves, particularly in BFPS, Manufacturing, Creative Digital Technologies and Retail.

Access to new domestic sales opportunities remains a top challenge, especially in Digital Technologies, Manufacturing, and BFPS. Looking ahead, businesses seek support in innovation, business planning, marketing, workforce development, financial advice, and environmental
impact. Small firms face more challenges compared to larger ones, particularly in domestic sales, product development, business model adaptation, financial management, and digital adoption which remains same across the quarter.

GC Business Confidence Index (GC-BCI). A ranking of how confident businesses are on their growth prospects for the year ahead. This currently stands at 7.3 out of 10, same as previous quarter (7.3), indicating stable growth. GC BCI is higher than average for all organisations
within Engineering, Green tech, Banking & Insurance, Education; lowest in Hospitality & Tourism.

Sales and profits. 23% (vs 21% previously) of firms reported that they experienced an increase in sales in the latest quarter, and 64% expect
profits to increase in the year ahead (vs 62%). Just 3% expect profits to decrease, slightly higher than last time. The main sectors expecting an
increase in future sales were Manufacturing, Digital and Creative Technologies, Retail, and Business Services.

Main Impacts and Financial Resilience:

➢ Main economic impacts include rising costs affecting 40 % of firms, cashflow issues for 24%, and minor supply chain disruptions for 17%.

➢ Despite a slight decrease, 60% of firms maintain cash reserves lasting over 6 months, with higher reserves in firms from 0-9 and sectors like Creative digital and technology, Manufacturing and BFPS.

Business Challenges and Support Needs & Recruitment / skills issues

➢ Top future support needs reported Access to domestic markets and new sales opportunities (52%), innovation (36%), Business planning (34%) and Manging finances (30%)

➢ Workforce skill gaps persist, with 39% of firms stating existing skills meet objectives with mainly caused by specialist technical skills (29%) and knowledge of products / services at 12%.

➢ Innovation activity remains steady, with investment in improved services (37%), R&D (26%), improved goods (23%).

➢ Digital innovation 14% invested in acquisition of digital products of 6% (vs 6%) made investments in the acquisition of advanced machinery
or equipment.

Recruitment, Employment, and Skills Issues

➢ 25% (vs 26% previously) of firms surveyed are currently recruiting new staff.

➢ Workforce skill gaps. 39% of firms said that their existing workforce skills are at the right level to meet business plan objectives for the year
ahead.

➢ 46% firms said workforce skills are at partly level and 2% said not at the right level among those small SMEs (0-9) and (10- 49) had correct
workforce skills at partly level.