A RENEWED FIGHT FOR SURVIVAL 488

The NHBF’s latest State of the Industry quarterly survey (published in February 2023) shows further evidence that the sector is slowly recovering, but is urging further targeted government support to ensure business survival and growth.

With rising energy and business costs and declining consumer confidence, the sense of uncertainty that returned in September has now bedded in. Businesses are most worried about energy costs, supplier costs and rises to the National Minimum Wage/National Living Wage (NMW/NLW). And, in response to these worries, they are removing non-essential expenditure, increasing prices and holding off taking on staff or apprentices.

● 25% of businesses (up from 19% in September) are making either a small or substantial loss; 30% are making a small or good profit (down from 35%), and 44% are breaking even.

● 51% of businesses raised their prices over the previous three months; a further 66% will do so over the next three months (see page 48 for advice).

● 71% of businesses are either partially or completely reliant on government support. This reliance peaked at 81% in January 2022.

Staffing and recruitment

● In the next three months, only 15% of respondents are

‘definitely’ or ‘likely’ to take on new staff (12% in September).

● Over the last three months, 21% have cut back on apprentices (25% in September). Only 9% were ‘definitely’ or ‘likely’ to take on apprentices in the next three months.

● Half of businesses (50%) say they either were not sure or would not be supporting apprentices to the end of their course.

The future

● Only half (49%) of businesses are confident of their survival; 44% are not sure whether they will survive over the next six months, until June 2023.

● At the same time, 30% say that they intend to grow their business either rapidly or moderately.

Commenting on the survey results, NHBF chief executive Richard Lambert said the hair and beauty industry is now faced with a renewed fight for survival after businesses have battled through the last two years.

‘The latest survey results show that businesses already in debt are still grappling with rising energy costs, supplier and staff costs. With continued and targeted support from the UK Government, we are confident that the personal care sector will be in position to play a central role in the UK’s economic growth, thriving high streets and community wellbeing into the future.’ were salon or barbershop owners were selfemployed were space renting, mobile or freelance SECTOR SURVEY THE CUT SALONFOCUS | SPRING 2023