Renewed Focus on Cash Flow Could Relieve Skills Shortage

25th May 2018.

Britain’s exporters are struggling to grow as fast as they would like as they are enduring sustained recruitment difficulties.

Many labour sectors such as construction and manufacturing have suffered from a persistent skills shortage. While the record-low unemployment is a good thing for most, it puts impossible pressure on recruiters. With so many skilled labourers already in employment, contractors and factory owners have found it tough finding the men and women to fill vacant posts. The departure of EU workers after the 2016 referendum put further pressure on these sectors and left many firms with an incomplete workforce.

Recruitment difficulties can be easily rectified through the strength of cash flow. At the Credit Protection Association, our debt recovery services chase down unpaid invoices and late payment and supply our members with some financial freedom. This can then be used for improving business, whether it’s renovating offices or launching training and management programmes to improve the skills of the individuals already employed.

Two-thirds of the UK’s exporting manufacturers faced recruitment difficulties in the first quarter of the year, the British Chambers of Commerce (BCC) found. Technical and skilled manual labour proved hardest to find.

Among services exporters, the proportion was slightly lower at 57pc. They struggled most with professional and managerial-level staff.

“Businesses with global ambitions are facing critical skills gaps at just about every level. The combination of decades of constant change in the training system, declines in immigration, and tight local labour markets are stopping many firms from making key investments,” said the BCC’s director general Adam Marshall.

“A stable training system, a reformed apprenticeship levy, answers to practical questions around Brexit and clarity on the UK’s future immigration regime are urgently needed. Get these right, and exporters all across the UK will take risks, invest and grow.”

The companies are still growing – 42pc of manufacturers reported rising exports, as did 28pc of services firms in the survey of 3,300 businesses.

Skilled workers are fundamental to the success and prosperity of the UK economy, and are detrimental to the performance of hospitals, factories and construction sites. Since the Brexit referendum in 2016, our relationship with rival economies has become agitated, and as a result, the pressure has been increased on the strength of our exports.

No business can expect to handle more employees with mismanaged finances. A positive cash flow can open a multitude of opportunities, from new technology and equipment to a larger workforce. At the Credit Protection Association, our debt recovery services chase down unpaid invoices, while our credit management products keep finances protected. Our credit checks and status reports help our members scrutinise debtors and customers, allowing them to spend their new cash without risk.

As a result of utilising our services, our members have gone on to purchase new supplies for business or personal use or initiated new internal programmes for their employees. Particularly for those business owners struggling with skills shortages, our services have encouraged them to launch training programmes as well as host recruitment fairs and events. Approaching a third party like CPA not only recovers monetary items but also restores the business confidence and morale that diminished since the 2016 referendum.