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Industry analysis

What’s happening in your sector?

Our quarterly roundup of industry news, views and highlights, covering a range of topics from economic performance to environmental issues.

An economic snapshot of the UK

  • 2018 GDP growth forecast [1.3%]
  • Enemployment at a 43-year low [4%]
  • Inflation above UK target [2.3%]
  • Current bank base rate [0.75%] with two rises expected by 2021

Original article: https://tradingeconomics.com/united-kingdom/indicators
Source: Trading Economics: economic indicators

Select
  • Hospitality

    It’s good news for the hospitality and leisure sector, with yearly increases in consumer spending, customer insights that help boost business, and an environmental push that’s having a positive impact all round.

    The future’s bright

    Wage growth may be slow, and inflation may be above government targets, but that hasn’t stopped the people of Britain from getting out and about. In fact, the average family in the UK will set aside 22% of their weekly budget for leisure activities, which, when alongside an increase in visitors to the UK from abroad, creates – a boon for the hospitality and leisure sector, which forecasts an increase in spending of around 4% every year to 2021.

    Original article: http://rg-group.co.uk/whitepaper-leisure-hospitality-sector-changed-recent-years/
     

    Staycation nation

    Another boost for the sector is the number of Britons enjoying holidays on home soil – one in three of us chose a British holiday in 2017. While the pound continues to struggle, this trend could grow in the coming years, with 20% of adults believing that the UK offers better value for money than other destinations.

    Source: https://www.barclayscorporate.com/content/dam/corppublic/corporate/Documents/Industry-expertise/destination-uk.pdf

    People power

    Is the customer always right? Perhaps not – but businesses would do well to listen to customers’ opinions. There are 200 new reviews added to TripAdvisor every minute and 750,000 new reviews on Open Table every month. This gives businesses vital opportunities to grow and stay ahead of the competition. Of those we surveyed, 57% of businesses said listening to customer feedback has resulted in an increase in customers, while 54% said it improved their customer service.

    Source: https://www.barclayscorporate.com/insight-and-research/industry-expertise/the-feedback-economy.html

    The final straw

    In a resounding nod to people power, the sector is increasingly saying no to single-use plastics. Several leading brands have banned plastic straws – an initiative welcomed by 9 out of 10 consumers. There are many ways you can join the war on plastics too – as well as ditching the plastic straws, swap the single-use sachets for refillable bottles, install a water fountain, or use renewable energy.

    Original article: https://www.streetbees.com/news/straw-ban.html
    Source: Streetbees app survey, April 2018 (original results dashboard available through the link above)
    Source: Barclays internal research, 2018

  • Healthcare

    Health is going digital – with artificial intelligence and online services, we’re more informed about our health than ever before, and can look forward to more efficient healthcare services in the future. 

    Global spend trend on the up

    Between 2017 and 2021, global spend on healthcare is expected to rise by 4.1% each year – up from just 1.3% in 2012 to 2016. We can thank an ageing and expanding population in part, as well as advances in medical treatment, rising labour costs and the expansion of developing markets.

    Original article: https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Life-Sciences-Health-Care/gx-lshc-hc-outlook-2018.pdf

    UK private care continues to grow

    Longer NHS waiting times and more referrals are resulting in an upward trend in the value of the private healthcare sector. In 2017, it was valued at $11.8 billion – a figure that’s seeing continued growth and is expected to reach $13.8 billion by 2023.

    Source: https://www.medgadget.com/2018/03/u-k-private-healthcare-market-expected-to-reach-us-13-8-bn-by-end-of-2023-with-cagr-of-2-6.html

    Digital health

    Patients who get health information online report having more productive conversations with their GPs, having a better understanding of their GP’s prognosis, and saving time by using online information rather than making a GP appointment. Is your business actively recommending online patient networks and trusted sources of information?

    Original article: https://www.nuffieldtrust.org.uk/files/2017-06/1497259872_nt-the-digital-patient-web-corrected-p46-.pdf

    The wonders of artificial intelligence

    The healthcare sector is set to make a significant investment in technology over the coming years, which is expected to result in reduced costs, increased access to care delivery and higher service efficiency. The AI health market shows explosive growth – from $633.8 million in 2014 to an estimated $6.6 billion in 2021.

    Original article: http://usblogs.pwc.com/emerging-technology/ai-in-healthcare/

  • Media

    Great news for the media sector, as huge amounts of industry revenue – from advertising, all the way to the big screen – continue to drive growth.

    Top three sectors

    In 2017, 80% of industry revenue was generated in just three subsectors – TV production and distribution (41%), advertising (21%) and information publishing and events (18%).

    https://www2.deloitte.com/content/dam/Deloitte/uk/Documents/technology-media-telecommunications/deloitte-uk-media-metrics-2017.pdf

    The value of the industry just keeps on climbing

    The media industry is on an upward curve, with its value set to climb by 3% each year to £76 billion by 2022. Experts predict the fastest-growing sectors will be virtual reality (VR) and eSports – great news for the UK, as we have the largest markets in the EMEA for both areas. 

    https://www.pwc.co.uk/industries/entertainment-media/insights/entertainment-media-outlook.html

    A TV production loan that reflects modern times

    An evolving market needs innovative financial solutions that move with the times, so we’ve launched our TV production loan. Aimed at enabling cash flow for SME production companies, it specifically discounts commissioner contracts, as opposed to funding production through an overdraft – so it’s ideal for subscription video on demand (SVOD), and distribution or merchandise contracts. The production company can borrow money over a longer period and use it to develop creative content.

    https://www.broadcastnow.co.uk/futureoftv/how-barclays-can-help/5127265.article

    A predicted decade of market growth

    In 2017, UK advertising expenditure grew by 4.6% – the eighth consecutive year of growth. The industry shows no signs of slowing down either, with predicted growth of 4.2% in 2018 and 3.8% in 2019. If these forecasts are correct, the industry will have grown every year for an entire decade – a great demonstration of its strength and resilience.

    https://www.adassoc.org.uk/2018/04/2017s-definitive-advertising-statistics-released-today/

    A Cinderella story

    The film industry in Britain is now bigger than the pharmaceutical industry, with screen sectors contributing a huge £6 billion per year to the UK economy. Experts believe its nine years of sustained growth will continue over the next three decades, especially as eight of the world’s top 10 VFX studios are now housed within a mile of each other in London’s Soho district.

    https://www.barclayscorporate.com/insight-and-research/industry-expertise/future-of-media.html

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