2023 UK business predictions – a look at the year ahead for UK companies

Throughout 2022 the world has started to return to normal post-pandemic but covid’s legacy still lives on with its effects on business. As 2023 approaches it’s a good time to look at what we can expect in the UK business world over the next 12 months. Here are three business trends to watch out for next year:

The talent pool goes global

As 2023 will see a continued skills shortage across most industries in the UK, many businesses will be looking overseas. The UK has shown more willingness to utilise international workers than the US or Canada. Research from Remote found 30% of London entrepreneurs have the majority of their team based in another country, while 56% of business owners across the UK have hired at least one international employee since 2020. Additionally, only 19% of UK business owners said they had no intention of hiring any international staff, compared with 37% in the US and 21% in Canada. The increase of remote working has facilitated businesses hiring international staff and businesses have realised the benefits: 88% of UK employers said hybrid or remote working has positively impacted their company culture.

But how does it work if you don’t all speak the same language? A key part in the success of this recruitment will be finding the right solutions to overcome language barriers, whether that’s digital translation devices which offer instant, accurate two way communication, for informal phone or face-to-face chats, or subtitles for video conference calls.

In addition, the accelerated digital transformation (see trend below) will lead to more workplace automation that will augment most jobs. Workers will increasingly share their work with intelligent machines, which has huge implications for the skills and talent companies require in the future. This will require reskilling and up-skilling workers in UK businesses as well as recruiting new people that have the skills required for the future.

Technological innovation will accelerate to overcome rising costs 

UK businesses are facing increasing costs in 2023 due to rising energy prices in particular, plus the planned corporate tax rate increase to 25%, set to take effect in April 2023. This means companies will be looking at solutions to reduce their spending, which is likely to see accelerated digital transformation. 

Businesses should invest in innovations and developments in transformative technologies such as AI, IoT, virtual and augmented reality, and cloud computing. Also, there will be a greater combination of these technologies working together than ever before. New solutions for hybrid and remote working, business decision-making, and automation of manual, routine, and creative workloads combine these technologies in ways that enable them to enhance each other. 

To prepare for this, businesses must ensure they invest in the right technology throughout their processes and in every area of operations. The right solutions can save organisations thousands of pounds as well as increase productivity, improve customer services and stimulate innovation. All of which will add to the profits of the company and help level up against increasing costs. 

Long-term supply chain changes 

Global supply chains are under strain due to the ongoing impact of the pandemic and Russia-Ukraine war. At the same time, the UK is still dealing with the legacy of Brexit and the impact it has had on supply chains for importing and exporting goods, services and raw materials.

This means that as issues with supply chains continue UK businesses will increasingly look to diversify their supply chain and look to emerging markets.

According to new analysis from Morgan Stanley Research, a new supply chain model is emerging which is more focused on trade among regional players and allies. Although the full effects of this change will take years to emerge, countries like Mexico, India, Vietnam, and Turkey could benefit from the process. 

On the one hand, the numerous benefits of supply chain diversification include lowering costs and improving networks. But communication and cultural barriers can have a big impact if you’re moving to a new supplier. This means UK businesses need to be more mindful than ever of cultural differences, regional business etiquette and effective language translation solutions for businesses.