Member Article

More than half of the North West’s tech businesses are confident about the next 12 months

More than half (53%) of tech and digital businesses in the North West reported they are not expecting any impact on staffing or turnover this year which shows confidence about what the year holds.

The Digital Skills Audit, released this week, also found that 78% of tech and digital businesses in the North West have expanded in terms of revenue growth in the past 12 months, and 72% have increased their staffing levels. The report found that 19% of businesses remained the same for revenue growth and staffing levels in the last 12 months, with only 4% seeing lower revenue and 9% reducing staffing levels.

Sentiment from the North West tech sector is broadly positive for 2023. This week sees the Digital Skills Festival’s Talent Day (Wednesday, February 8) event with 40 leading tech businesses offering around 300 jobs to graduates, students and career changers, and Tech and Digital Minister Paul Scully attending a tech business Round Table.

The annual Digital Skills Audit is collated by not-for-profit trade body Manchester Digital as part of the annual Digital Skills Festival (February 6-10). The in-depth report covers business confidence, working trends, tech skills and recruitment, diversity and inclusion. The data is collected from a cross-section of selected tech and digital businesses and individuals from across the North West.

In terms of future growth, 71% of tech and digital businesses in the North West say that IT developers will be the most important job role for their growth over the next three years. However, 49% of businesses said that a lack of the right skills and experience in candidates is their biggest productivity challenge.

63% of tech and digital businesses in the North West are taking action to help employees with the cost of living crisis, with this figure rising to 93% of businesses with more than 250 employees.

In last year’s audit, businesses said that 44% of their employees were working in a hybrid manner; in 2023, this figure has risen to 78%. This shows that hybrid working is now firmly embedded within tech and digital businesses and shows no signs of changing back to mainly in-office working.

Manchester Digital MD Katie Gallagher said: “The North West tech and digital sector is extremely resilient, with the data pointing to a broadly positive year, despite the current economic gloom. The diversity of our tech industry gives our region added resilience, with strengths across many sectors, including artificial intelligence; environmental and green technology; ecommerce and fintech.”

“Tech and digital businesses by their very nature are adaptable and flexible. Post-pandemic we have certainly seen a change in how tech businesses operate, with hybrid working firmly here to stay.”

Alison Ross, Manchester Digital chair and operations and culture director at Auto Trader UK, said: “There are positive signs that the North West tech and digital sector will remain strong this year. Developer, DevOps and Business Analyst skill sets are still hugely in demand and businesses predict that these skills are key to growth and productivity for the tech sector.

“Developing the early talent pathway for technical skills remains one of our key focuses within Manchester Digital, especially growing our Manchester Digital Academy apprenticeship programmes.

“It’s amazing to see the tech industry come together for the annual Digital Skills Festival to showcase their career pathways, apprenticeship programmes and bring together tech leaders to continue to work together.”

Manchester Digital is an independent trade body for the tech and digital sector in the North West, and runs a number of programmes to support the region’s strong industry. These include their Level 4 apprenticeship programme, the Digital Her programme which supports and encourages women to consider a career in tech, as well as regular events and conferences for its members.

The Digital Skills Audit is used by both regional and central government to assess the current state of the North West tech and digital industry, looking particularly at what tech skills are most needed and most difficult to find, as well as data around diversity and inclusion.

MD Katie Gallagher is also the chair of the UK Tech Cluster Group, which brings together the UK’s regional tech industries to share best practice, and sits on the Government’s Digital Skills Council.

This was posted in Bdaily's Members' News section by Carolyn Hughes .