Six industries prospering despite the harsh British economic climate
- 23 Oct 2023
Both everyday citizen and business owners in the UK are having to tighten their belts in 2023. Energy bills are high. Food prices are rising. Inflation is forcing Brits to dip into their savings as they struggle with the cost of living. Gross domestic product (GDP) is forecast to grow by barely 0.4 per cent in 2023 and could even shrink by the end of the year. Experts expect the UK to steer clear of a recession in 2023, but fear the nation could still enter one at the end of 2024.
Clearly, the economic climate in the UK is harsh. However, there are reasons not to lose hope. Business investment rose in the first quarter of the year, as companies rushed to make the most of a tax break on capital projects, and, despite the gloomy economic climate, some industries are still thriving. Below is a look at some of the industries doing well in Britain in spite of the economic downturn.
In economic times when everyone appreciates a little extra cash and even just a little leisure to escape the stress of everyday life, it might come as little surprise that online gaming operators are doing well in the UK. The UK’s Gambling Commission has reported that from April to June 2023, the total gross gambling yield (GGY) increased 5 per cent to £1.3 billion, compared to the same period last year. The commission explains the increase is driven by a 12% increase in (online) real event betting, which increased to £538 million for quarter one.
The commission also reports that the gross gambling yield for online slots increased year on year for this period, which it did to £583 million. The number of active accounts climbed by 12% to 4 million. Of course, not all online players create accounts for slots and they may have been playing real money poker while on the operator’s website.
Bowling is an enjoyable activity and, in the leisure and entertainments industry, operators of bowling alleys will be especially enjoying the progress the industry is making. Analysts predict revenue to shoot up to £495.6 million through 2023 to 2024. The growth has been driven largely by the expansion of the two dominant chains in the industry, Hollywood Bowl and Ten Entertainment. These chains have expanded their number of bowling centres by 10% from 2017 to 2022, which has boosted growth.
As the economy moves towards low carbon, the green technology and energy sector has grown; so much so that employment website Indeed suggests this as one of the sectors to break into if seeking a career. Quoting research by data house Kmatrix for the Government, the website informs readers that the low-carbon sector is worth £205.7 billion and there have been large increases in the demand for wind, solar power and wave and tidal energy. The site also mentions that green technology investment is set to create 250,000 jobs by 2030.
Online food ordering and takeaway industry
Since 2017, the food delivery market has tripled around the world. In some circumstances, many restaurants have been forced to close temporarily, so customers have had to order takeaways online. Many restaurants that have previously only offered face-to-face service have spotted they could be missing out and embraced the opportunities an online service creates for their business.
Not only this, but the invention of apps has made it more convenient for citizens wishing to dine to place an order. Apps are also user friendly, which has made it easier for them to find the type of food they wish to order.
The budget airlines industry has experienced rapid growth surge as consumers seek more value for money from their travel. The low number of budget airlines, plus external factors such as business confidence, consumer confidence, household disposal income and inbound and outbound tourist numbers, has impacted demand and the growth of revenue. Low growth in household disposable income and low confidence triggered by Brexit have also caused growth in the industry to soar. Experts have predicted revenue to rise to £10.1 billion through 2023 to 2024 and at a compound annual rate of 0.3% over the five years from 2023 to 2028.
The IT sector is experiencing major growth. The growth of remote working has created greater for engineers to work on mobile networks, company intranets and broadband installation, which has led to the growth of opportunities in computer support. As businesses seek to improve customer service by developing apps, the app development industry has also grown and helped to drive growth of the wider IT industry.
Times may be tough in the UK, but there are industries that are not only weathering the storm, but also thriving in it. Other UK industries that are prospering in spite of the economic climate include the sports clothing and equipment industry, the property industry, health care and the telehealth industry.