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HAS THE MARKET TURNED A CORNER?
We have seen an uptick in both Interim and Permanent activity since mid-June, following a very subdued market through the first 7 months of 2024; with many organisations appearing reluctant to increase headcount while geopolitical and economic uncertainties persisted.
In the last month we have seen indications of increased demand from our clients; whilst business confidence appears to be improving. Recent Purchasing Manager Index (PMI) UK survey data for August, support our own findings, with business confidence across the UK rebounding in July, with both manufacturing and service organisations showing greater optimism towards future business activity; with expectations of improving demand conditions, stronger business investment, interest rate cuts and political stability.
TREND INDICATORS FOR PROCUREMENT & SUPPLY CHAIN RECRUITMENT
EVIDENCE OF PENT-UP DEMAND, with a good number of roles just about to come to the market after a spring and summer of uncertainty. A new government, inflation down and improved business confidence; all suggest increased demand for procurement and supply chain labour over the ongoing months.
PERMANENT RECRUITMENT: We have seen an uptick in roles available, that is likely to increase further as we leave the summer holiday period behind. It may be a sensible strategy to start looking for your procurement and supply chain talent now, before the market really picks up.
INTERIM RECRUITMENT: We are beginning to see an increase in interim staffing demand, which is likely to strengthen as we progress into September and beyond. Circa 85% of our roles remain inside IR35 as businesses remain uneasy about their tax liability and reputational risk if they fall foul of the HMRO directives. The frequent changes and uncertainties surrounding the IR35 rules, have caused significant disruption to businesses and contractors historically; the hope is that the Autumn Budget will bring tax legislation that clarifies and simplifies IR35 legislation; that enables firms to better utilise interim talent.
PUBLIC SECTOR CONTRACTS have been few and far between. Increased pay rates for public sector workers and the possibilities of changes in the IR35 legislation in the pending Autumn Budget, may create some significant movement in the public sector contractor market.
SENIOR LEVEL CPO AND HOP ROLES are still rare with lots of applicants, and plenty of long-term time frames before fruition; six months from application to offer is not unusual.
RESTRUCTURES: We have seen lots of company and departmental restructures, particularly in the FMCG and Financial Services sectors. Once these have settled, we expect an increase in new roles to hit the market.
BUSIEST SECTORS: Financial Services, Fintech, Utilities.
CATEGORIES IN HIGH DEMAND: Logistics, Capex, Digital, IT (Datacentres, Networks), Facilities
HARD TO FIND SPECIALISATIONS: Sustainability, Environmental, Social and Governance Specialist. AI and Data Analytics specialists.
CATEGORY MANAGERS across Indirect and Direct categories are in high demand. Our clients are seeking category managers who have a deep understanding of their specific category along with broader skills across other categories, in addition to solid influencing and leadership skills, for more senior roles.
UK JOBS MARKET PREDICTIONS
According to KPMG’s Economy Outlook forecast for the UK, July 24, “The UK economy is gradually turning a corner. Following a technical recession in the second half of 2023, GDP rebounded by 0.6% in the first quarter of 2024.” It goes on to say that “Business surveys, including a composite of PMI and the Lloyds Business Barometer, are consistent with a re-acceleration of growth. “The external environment is also expected to recover following the weakness last year, although there are still risks associated with geopolitical tensions and supply chains.” (Source: KPMG’s Economy Outlook forecast for the UK, July 24)
S&P Global Purchasing Managers (PMI) indexes showed strong growth indicators for both Manufacturing and Services sectors; with demand in the “UK services sector rising at the fastest pace since May 2023” and “production growth the fastest since February 2022. (Sources: S&P Global UK Services PMI, 5th Aug 24 and S&P Global UK Manufacturing PMI, 1st Aug 24)
The KPMG and REC UK Jobs survey for June’s overall job market; indicates a slightly more cautionary picture, with figures showing “concurrent declines in permanent and temporary staff appointments in June; although permanent staffing fell at a slower rate than in preceding months” and temporary billings showed just a marginal contraction. “The availability of candidates for both permanent and temporary positions continued to rise in July, although at a softer rate, easing in each instant to the lowest for 5 months”, according to the survey. (Source: KPMG and REC UK Report on Jobs, 8th Aug 24)
Our thoughts largely mirror Kate Shoesmith, REC Deputy Chief Executive of the REC, commenting on the latest KPMG and REC UK Jobs figures said “Employers are gradually emerging from the woods, gaining optimism for their businesses and the broader economy. London is setting the pace with a growth in permanent placements signalling the potential for an economic bounce back elsewhere in the country.”
Our hopes are that lower interest rates, improving demand conditions, improved political stability, will be supported by an autumn budget that encourages business decision makers to invest and recruit; will all lead to a more active procurement, vendor management and supply chain recruitment market as we move into the final quarter of 2024 and beyond.
CONCLUSIONS
Finding and securing Procurement, Vendor Management and Supply Chain talent is more critical than ever for the success of organisations across all sectors and geographies. Future risk of supply chain disruption and volatility due to continued global geopolitical and economic uncertainties, do nothing but fortify the importance and contribution of truly talented Procurement, Vendor Management and Supply Chain people.
With expectations of improving demand conditions, interest rate cuts, improved political stability in the UK, and continued global geopolitical uncertainties; we hope that the increased activity we are currently seeing, is the first sign that the UK Procurement and Vendor Management recruitment market has turned a corner, and we will see a much more buoyant and active sector as we move towards and enter 2025.
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If you would like more information about Interim or Permanent Recruitment Solutions for Procurement, Supply Chain and Vendor Management disciplines please get in touch:
T: +44 (0)1403 248 448
E: info@beselect.co.uk
The Beaumont Select Recruitment Team
Meet Our Team of Procurement Recruitment Specialists at Beaumont Select
Beaumont Select Market Bulletin, September 2024
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