Scottish firms 'behind targets for 2022' amid cost pressures

Scottish businesses are behind targets for 2022, citing inflation and supply-chain pressures as the greatest challenges, according to accountancy firm BDO, which is urging them to take stock to help safeguard their future.

The organisation has revealed new research spanning 500 medium-sized businesses, with nearly a third of such firms in Scotland saying they intend to increase the prices of their goods or services to manage inflation and support growth.

Furthermore, 41 per cent fear a shortage of workers able to work necessary hours, and a fifth have offered non-monetary benefits such as additional holidays to attract and retain the best talent.

Kevin Lamb, director at BDO in Scotland, is encouraging firms to adopt an approach that will ensure their long-term success. Picture: Rob McDougall.

However, on a more positive note, half think they will return to pre-Covid revenues in under 12 months, and nearly one in five plan to increase their headcount above pre-pandemic levels this year.

Kevin Lamb, director at BDO in Scotland, praised the level of optimism among Scottish firms, but added: “The challenges facing [them] are well documented, and businesses are really feeling the impact of rising costs. Inflationary pressures are set to mount further over the coming months, with energy and fuel prices key drivers of this increase, together with the volatile events unfolding in Ukraine, which will add to uncertainties being felt around the world.

"As such, a high proportion of companies are having to consider raising their own costs to manage growth. The key is to take stock of the myriad of challenges now… and rethink an approach that will ensure the long-term success of the business.

“It’s vital for companies to continue to rethink recruitment and retention strategies to stand out in an increasingly competitive landscape.”

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