Industry news

There has little effect of Brexit on the UK economy according to the Office of National Statistics (ONS). Chief economist, Joe Grice, says that “The referendum result appears, so far, not to have had a major effect”. The statistics would suggest the UK economy has been like a yo-yo in the past few months with sectors growing one month before falling the next. With encouraging news across the board, Phillip Hammond, the chancellor, said “I am confident that we have the tools necessary to support the economy." However, it is worth reminding everyone that Brexit has not yet occurred and many of the details are yet to be worked out.

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Related news:Mrs May On Charm Offensive

Aecus Innovation Showcase will now be a Webinar, embracing the impact of the digital age upon the outsourcing community. The Webinar will be a chance to discover some of the great success stories innovations has created a competitive advantage and will offer the opportunity to acquire transferable ideas to develop your own strategy. To register for the event and to learn more about the Aecus Innovation Webinar, please click here.

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Related news: Aecus Announces 2016 Innovation Award Winners

The PM, Theresa May, has held a summit in New York last night to reassure US banks about the British economy after the Brexit vote. She also met other giants of different sectors such as Amazon and Sony Pictures in a plea to maintain large investment flows into the UK. There had been concerns that after the vote to leave the EU, some companies could move UK headquarters to the continent. Meanwhile, ratings agency Moody’s has played down the loss of the EU passport, suggesting that any effect would be limited and lead to only short term internal restructuring and divisions in management resources.

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Related news: Brexit Economy Looks Weak

Today the Cyber Highway scheme will be launched in the UK in an attempt to help UK business defend themselves against cyber threats. New research suggests that over 90% of UK firms have suffered a cyber-attack in the past 5 years. Companies can now track how suppliers are being approved for the official government stamp of approval for security standards, and businesses can also improve their own compliance through the platform. Lord Blunkett, former home secretary and now chairman of the company behind the scheme Cyber Essentials Direct said “Government departments now require suppliers bidding for particular contracts to be cyber essentials certified”.

For more information on Cyber Highway, click here.

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Related news: UK Under Risk of Successful Cyber Attack

The Ministry of Defence may be about to complete a £30 million deal to develop a prototype laser weapon. The prototype that would will be assessed before a decision as to whether it would be useful in the UK’s arsenal. This project is part of a larger £800 million Defence Innovation Initiative which over the next ten years hopes to encourage new technology being incorporated into the UK’s defence. The initiative “will put the UK at the fore front of high energy laser systems”, said Dave Armstrong, executive group director technical and UK managing director of MBDA, a missile manufacturer.

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Related news: Ministry of Defence to oust Serco and bring Defence Business Services in-house

Canada will be opening a new trade hub in London this week in an attempt to help Canadian firms crack new markets and gain investment. Export Development Canada (EDC) is a government export support service that will launch this week is a boost to expectations about the attractiveness of the UK’s, and particularly London’s, economy post Brexit. It was also revealed in research by London & Partners that London remains an attractive hub for tech companies as a survey of more than 200 US tech executives picked London as the top destination in Europe for building a tech business.

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The Shortlist for the NOA Awards ceremony has been released with the winners to be announced on Thursday 10th November 2016. This is the thirteenth annual award ceremony which recognises the achievements of the industry and celebrates the efforts of companies who have demonstrated best-practice in outsourcing. NOA CEO, Kerry Hallard said “This is without doubt the most competitive year ever in terms of submissions; the quality of case studies evidencing outsourcing excellence across aspects such as relationship and contract management, innovation, service delivery and collaboration has made the judging process an extremely challenging one”. The 18 categories cover all sectors of the outsourcing industry as the event promises to be a must-attend event.

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A survey by Lloyds bank of business confidence showed that small and medium sized enterprises expect a reduction in orders and are less likely to hire or increase capital spending. The overall business confidence index measured by the bank fell to a four year low, which could be further proof of the lasting effect of Brexit on the economy. The survey showed that the service industry was the most concerned about the vote, especially in areas that voted remain. In a hint of good news, the survey showed that the appointment of Mrs May as PM has rallied some confidence.

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Related news: UK Rebound Provides Little Optimism

Mitie Group Plc, Britain’s outsourced service provider, has issued a profit warning, citing a reduction in higher margin project volumes and reduced spending by client’s after the Brexit vote. Mitie Group pointed out the slowdown in its healthcare unit and its property management unit which has been damaged by social housing rent reductions that came into effect in April 2016 and pressures in local authority spending on maintenance and repair projects. Mitie Group has already indicated intentions to exit ‘unsustainable’ care contracts.

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Related news: Brexit jitters taking a toll on business, Mitie warns

The Guardian is reporting that the President of the Bundesbank, Germany’s central bank, Jens Weidmann, has warned that a hard Brexit will damage the global standing of the City of London as a financial hub. Mr Weidmann noted that the hard Brexit option would lead to banks being stripped of their ability to do business across the EU. Much of the issues Mr Weidmann discusses in his interview relate to passporting rights and how the removal of free movement will hurt the City’s popularity with financial industries.

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