ICAEW Business Confidence Monitor data shows that access to the right skills persists as one of the biggest challenges for businesses up and down the country. The UK workforce is shrinking, with nearly 500,000 more people economically inactive due to long-term ill health than in early 2020 and the population is ageing. In the next 25 years, the number of people aged over 85 is expected to double to 2.6 million.
Organisations that have the staff that they need are more able to take advantage of new opportunities, innovate and lift their own productivity. A strong supply of labour with the right skills is therefore one of the key foundations of a healthy and resilient economy but how can we make sure that we have the right people available for the right jobs in the right places?
Here at ICAEW, we’ve been working with our members and local employers to understand the role of resilience and renewal in building an economy fit for the future.
It was pre-Covid when I first met David Hieatt, co-founder of The Hiut Denim Company. Three pairs of jeans and some rather lovely cords later and I was delighted to have the opportunity to visit him and his team of ‘grandmasters’ in Cardigan. We chatted about how Hiut is providing local people with the skills and experience that the business needs and, in turn, creating meaningful, well-paid jobs that improve people’s lives.
Cardigan is a small but beautiful town of 4,000 good people. For three decades, 400 of them used to make 35,000 pairs of jeans a week. The factory closed down but all of the skill and knowhow remained which is why David started Hiut Denim. They’ve brought manufacturing back home, showcasing exactly why we need to support entrepreneurial capability, to enable individuals to take opportunities for themselves and create employment for others.
The high quality of life, stunning landscapes and natural coastline make Mid-Wales a great place to live and work but low levels of inactivity and in particular out migration and retention of young talent puts pressure on these rural communities.
Initiatives like the Mid Wales Growth Deal are important. The partnership between the Welsh Government and the UK Government will collectively invest £110 million in the region, increasing GVA by £570 to £700 million. This is aligned with the Regional Economic Framework sector priorities around digital connectivity, sites and premises, skills and labour.
As Chair of the Business Wales Task and Finish group, I believe Business Wales and wider Welsh Government support plays an active role in stimulating entrepreneurship and business growth; working alongside other ecosystem partners from academia, corporate, finance and entrepreneurs themselves to create a more visible and connected ecosystem of support here in Wales. I know that this is important to our members at ICAEW, all of whom are Chartered Accountants operating at the heart of business life.
For a generation, a shortage of skills has undermined business confidence, investment and productivity across the UK. Hiut Denim has breathed new life into the local industry and economy, employing local people of all ages and enabling them to utilise their skills and talents. It’s a great story and real credit to David and his wife Clare who set-up the business in 2011 following success with their earlier venture – the clothing brand Howies that they sold to Timberland.
David will be sharing his story and discussing some of the challenges that face employers when he speaks at our Economic Summit on 9 November. We’ll be bringing together ICAEW’s latest business research and expert guest speakers from the Bank of England, ICAEW and other leading regional businesses to discuss the current economic environment, and what it means for the future of UK business. I’ll certainly be interested in hearing more about how we can encourage a highly skilled workforce and build a labour market for the future because, for too long, a shortage of skills has undermined our economic growth.
There is a wealth of talent and experience in the country. We’ve just got to match it with what businesses need today; creating meaningful jobs that benefit businesses and allow local people to thrive.
