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news opinion


Is social media an unwelcome cost to business – like drug abuse and alcoholism clearly are?


Normally, you wouldn’t put social media in the same space as drink and drugs. But law firm Blake Lapthorn argues that all three are having a detrimental impact on business productivity.


The firm has conducted a survey that appears to show that employers are increasingly concerned about the negative effects social media, drugs and alcohol are having on their businesses as the distinctions between work and home life become more and more blurred.


The lawyers are worried that Facebook, Twitter and Linkedin are becoming a bit too addictive for some employees in some companies. Social media is itself a drug, and many employers don’t have a policy to deal with it.


And on drink, the firm says: “Patterns of alcohol abuse have changed and weekend bingers are affecting productivity through poor performance or absenteeism at the beginning of the working week.“ Monday is therefore a write-off. And, even when a staff member does shake off his or her hangover, there’s every chance more time will be wasted as the employee tweets away at their desk.


“Social media interactions are no longer restricted to being just outside working hours but are also conducted on social networks such as Facebook, LinkedIn and Twitter throughout the working day – and not necessarily on the employer’s equipment.“


We hear so much about the value of social networking – and there are countless consultants out there trying to give us the benefit of their advice on the matter – so it’s interesting to hear a contradictory view that suggests that many employers are not coping so well with these “emerging lifestyle trends“.


David Murray, Publisher www.businessmag.co.uk


Inflation rates restrict consumer spending


A halt in the decline of inflationary pressures combined with poor results for BDO’s Output and Optimism indices point to a sluggish recovery for the UK economy, according to the latest Business Trends report by accountants and business advisers BDO LLP, based in Ocean Village, Southampton.


BDO’s Inflation Index dropped by just 0.1 points in April, suggesting that the previously welcome downward trend in inflationary expectations over the past nine months is coming to an end. Worryingly, this levelling off sees the Inflation Index at 102.9, well above the average trend level of 100.0 (2.7%), suggesting that inflation is unlikely to reach the Bank of England’s 2.0% target by the end of the year.


These inflationary pressures, compounded by low growth in regular annual earnings at just 1.6% – below the inflation rate – are critically undermining consumer spending power, a key contributor to economic recovery.


Adding to consumers’ woes, trends in employment remain weak. While the BDO Employment Index did improve in April – climbing just above the important 95.0 level which indicates growth – it barely edged into growth territory (95.5) and remains well below the long-run trend rate of 100.0.


While there is a more positive view of the economy than six months ago, findings show that business people across the UK predict protracted slow growth for the UK economy for the remainder of 2012. BDO’s Optimism Index – which predicts business performance two quarters ahead – fell from 96.7 in March to 96.2 in April. Although the index remains above 95.0, it moved further away from the crucial 100.0 mark that equates to average UK trend growth. Meanwhile BDO’s Output Index – which points to business conditions in one quarter’s time – stagnated, moving up 0.1 to 95.8, only just in positive territory.


Malcolm Thixton, lead partner at BDO LLP Southampton, commented: “Given the public sector austerity measures required to reduce deficits, policy makers across the globe have reached for unconventional monetary policy tools to encourage growth. However, the UK has shown stubbornly high inflation and our findings suggest that business people predict inflation will continue above target – potentially a self-fulfilling prophecy.


“Some economists believe that the Bank of England should convince businesses and consumers that it is prepared to tolerate inflation. The thinking is that only this will convince consumers to spend and businesses to invest, as the alternative is to see the value of their cash assets decline. If this is the strategy, then it may be the right one. But it has not been articulated as such and the concern is that every day inflation continues above target, the Bank loses more credibility and has less room for manoeuvre.“


Terminal’s productivity at an all-time high


Shipping lines calling at Southampton’s container terminal are benefitting from the terminal’s continued drive on productivity as vessels turnaround times reduce.


The south coast terminal set its best vessel turnaround performance when it handled the maiden call of the largest ship in the Hyundai fleet. The Hyundai Together was turned around in 24 hours well ahead of its allotted window and set new productivity records.


In a 12-hour shift, 600 containers were moved by an individual crane on the Hyundai Together, equivalent to 50 moves per hour. The overall vessel exchange rate was 147 mph with an average crane rate of 34.58 mph.


Chris Lewis, managing director, DP World Southampton, which operates the terminal, paid tribute to staff for the new benchmarks, which follows a 20% rise in productivity last year: “I would like to publicly thank everyone involved


in this fantastic achievement, which demonstrates our leading performance in UK ports on reducing vessel turnaround times.


“This translates directly into less disruption for carriers and shippers. Our collective ambition to be one of the best terminals in Western Europe.“


In the July/August issue of The Business Magazine


• International Trade • Focus on AIM • Corporate Recovery


Details: 0118-9766411 sales@elcot.co.uk


THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – JUNE 2012


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