New era for UK business

UK
business is on the brink of a new era, according to the Confederation of British
Industry.

In its report, The Shape of Business – The Next 10 Years,
the CBI finds that the recession and credit crunch has been the catalyst for
changes in commercial models, supply
chains and finance.

The CBI expects firms
to find alternatives to debt-driven growth to protect investment and innovation. Meanwhile, ongoing concerns over
a ’domino effect’ of supply chain failures and issues around trade credit
insurance will compel companies to form more collaborative
partnerships.

Sustainability and
ethics will become more integrated
into the business model, and developments in technology and training will lead to more a
flexible workforce. For some firms
that might mean a smaller core
workforce and a larger ’flexiforce’.

CBI director-general
Richard Lambert says: “What we now need is a more balanced, less risky pathway
to growth – one in which the short-term returns may be lower, but the long-term
rewards for management success will
be a lot more sustainable and secure.”

The report’s findings
echo results of an Ipsos Mori survey of business leaders at the end of 2009,
which found that that more than half (55%) said they will now only tolerate a
lower level of risk from gearing. Two thirds (68%) expect no
improvement in credit availability in
2010, and as a result will reshape their business
financing.

Paul Colston

Author

Paul Colston

Managing Editor, Conference News & Conference & Meetings World.

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