Dawsongroup | finance

The business landscape in 2022 – PART 2

Following on from our previous blog exploring the potential business and economic terrain ahead in 2022, we’re back with some more forecasts and analyses. There is plenty to talk about, some challenges to consider, and reasons for optimism too!

Supply chains and the cost of materials

2021 saw supply chains pushed beyond breaking point and the cost of many materials rise exponentially, and while we expect a correction as the year progresses, it won’t be an immediate one. So, businesses need to continue to take care around logistical and financial planning to ensure they still have what they need when they need, or where possible delay projects until this sector recovers its equilibrium.

Freedom and travel

With the vaccine and improved treatments standing strong against the virus, the continued restoration of normal life looks set to continue in 2022, including more travel, the end of impingements on leisure and social pursuits, and a greater sense of confidence among consumers who can make plans and take decisions without the threat of future lockdowns holding them back. As consumers build confidence, opportunities for businesses who can meet their needs will follow, so be ready.

Stock level on new vehicles

Lower stock level on new vehicles has increased demand and the pricing of the second-hand market is ever-increasing. This is affecting businesses who are unable to purchase new assets required purely because they cannot find supply, with some suppliers offering six-month to one-year lead in times! On the other hand, businesses are facing increased costs to purchase a new vehicle because of the high demand, whilst second-hand vehicles are also becoming less affordable. With asset finance, you can avoid large upfront costs with manageable monthly payments.

The green agenda

After all the pledges of COP26 last year, action to tackle climate change is likely to pick up pace this year. One factor to consider is the planned expansion of low emission zones, with Aberdeen, Bristol, Dundee, Edinburgh, Newcastle, Manchester and Oxford among the towns and cities set to push forward with clean air zones.

If you haven’t already, 2022 is a good year to assess and improve your company’s green credentials, and with an ever-wider range of electric and hydrogen vehicles on the market, we can support you with the asset financing you need to be ready for the changes.

From the big picture to your own business planning, none of us have a crystal ball sadly – but the future is ultimately what you make of it!

We never fail to be impressed by the innovation, grit, flexibility and vision of our clients, so if you have a plan to take 2022 by storm, then get in touch to find out how we might help make it a reality on: info@dgfinance.co.uk or by calling 01425 474070.