ReleaseWire

The crisis response of the past two years may have slowed slightly in 2022. However, this is no time for organisations to stop investing in tech transformation. Implementing advantageous technology and going further in terms of strategy and vision, are vital right now. What follows are some of the key transformation trends that many tech enterprises are going to be focused on to make that happen this year. Enterprise tech is going to be playing a game of catch up with consumer tech in 2022 - out of date systems and hard-to-use software will be out this year in favour of enterprise solutions that have a more seamless feel. In addition, the time saving and process streamlining advantages of voice automation will become a clear choice for businesses, especially as many younger generations join the workforce. Plus, we are going to see increasing trends around digital twin technology and more firms embracing the true potential of the hybrid cloud.

The container crisis has had a huge impact on supply chains, especially for large organisations like Lidl. Now, the retailer has taken steps to help ensure the security of its future deliveries by launching its own shipping line. According to a recent report, Lidl intends to buy its own container ships so that the retailer will no longer be subject to the delays and issues that have resulted from the container crisis worldwide. Lidl is the fifth largest retailer in the world and operates hypermarkets in Europe. The German discount retailer is now in talks with shipping companies where it will be able to use its own sea freight capabilities, when it has them. Once the new operation is established for Lidl, it will be used for transportation and delivery of goods, including cargo transportation and export cargo handling services. Lidl is the latest major player to take this step to secure its supply chain but is unlikely to be the last.

The German manufacturing sector has had a positive start to the year, according to the latest figures. There is clearly still pressure on supply chains but many manufacturers have reported that this has eased somewhat, with new orders and an uptick in output. A softening of cost inflation to a nine-month low has also made a big difference to the way that manufacturers in Germany now feel about the coming months. Confidence among goods producers has improved in terms of the year ahead and many are now much more positive. In January of this year manufacturing PMI ticked up for the first time in six months, registering a five-month high. While supply-side progress still remains slow - and cost pressures are still a problem - there is a lot for the German manufacturing sector to be positive about when it comes to growth momentum so far this year.

Germany's Pharmaceutical industry sees a 9.5% rise in IT recruitment

Opportunities in German financial markets look set to expand considerably in the coming month and years. In particular, the embedded finance industry has some very positive forecasts, with 33.5% growth predicted in 2022. Over the period 2022 - 2029, CAGR of 20.3% is forecast with revenues to reach US$14,886.2 million by 2029. Momentum has been growing in Germany's financial sector in the past year with embedded insurance doing exceptionally well. The German market is attracting a wide range of international insurtech firms thanks to the opportunities that exist here. One major contributor to market growth in the coming years is the number of strategic partnerships that are being established between parties in the market in Germany, the goal being to launch innovative products in the coming months. Given that Germany is the largest consumer lending market in the European region the opportunities for businesses operating in this market are significant.

SysGroup is a managed IT services provider based in Liverpool, UK. The company has sought to enhance not just its geographic reach in the UK, but also the range of technical services it can offer, through acquisition. In April 2022, SysGroup announced the acquisition of Truststream Security Solutions, which is an Edinburgh-based cyber security firm. The deal is thought to be worth up to £8.5 million, including initial cash consideration of £4.8 million, and will be funded by a combination of existing cash resources and a revolving credit facility. In making the acquisition, SysGroup intends to expand its existing service offering from threat analysis to incident and detection response. It will also give SysGroup considerably more reach in terms of geography, as the company to be acquired is based in Scotland. This isn't the first acquisition that the firm has made in recent times, as it has already bought independent financial services group Zeus, which is based in Manchester.

The food manufacturing firm Bakkavor has announced the creation of 1,081 jobs across the UK as part of a nationwide expansion scheme. There are many different roles being created as part of this move, including food production operative, logistics technician and engineering manager. The job opportunities are in locations across the country, from Crewe to Nantwich. Bakkavor is keen to recruit new talent from communities nationwide in the UK and to build its current presence in the country to help the business grow. There are many career development opportunities within the business and all employees across the 23 nationwide sites benefit from training programmes that take into account not just career progression but also individual development. Bakkavor is a partner to some of the best-known supermarkets in the UK, producing a number of freshly prepared products, from meals to desserts. The company already employs 16,000 people across the UK and an additional 3,000 internationally.

Takeovers by North American buyers have become increasingly common for UK companies in recent years (see also Morrisons and infrastructure investor John Laing). Now, the wealth manager Brewin Dolphin is going to be taken over by the Royal Bank of Canada in a £1.6 billion deal that will create the third-largest wealth management firm in the UK and Ireland - and potentially an asset management boom. Royal Bank of Canada already has a well-established capital markets business in the City and a strong international wealth management business (it is the sixth-largest in the US market and the biggest in Canada). Currently, its wealth management operations in the UK are more modest but that looks set to change thanks to the Brewin Dolphin takeover. Consolidation in the wealth management sector is a current trend, as the Brewin Dolphin takeover isn't the first in recent times. Aviva recently bought Succession Wealth Management for £385 million, for example, and Charles Stanley was taken over by the US-based Raymond James last year.

Figures from the latest manufacturing survey show that the South West is the region leading the country in job creation in 2022 after an exceptionally positive start to the year. Manufacturers in the UK have enjoyed a boost in domestic orders, which has supported growth in manufacturing jobs and the highest level of recruitment intentions anywhere in the UK. Total output in the South West is the highest anywhere in the UK and almost double that recorded for the final part of 2021. There are a number of reasons for this impressive recovery, not least the spike in domestic orders and stability with respect to the number of international orders. Plus, the South West has benefitted from recovery in the aerospace sector as well as investments made in this part of the country in renewable energy. For those in manufacturing jobs in the UK, the South West is a land of opportunity at the start of 2022.

After a flurry of regulatory initiatives in 2021 - and an increasingly complex regulatory environment for many financial institutions to navigate - UK banks are focused on finding key compliance talent to help get through these challenging times. A new report has revealed that record numbers of risk and compliance jobs are being posted by banks in the UK market - a 98.9% year-on-year increase on the same period in 2020 - with hiring across all levels. In January of this year, banks published 850 risk and compliance roles, which represents an 87% increase on the same month pre-pandemic in 2019. It's not only an increasingly challenging regulatory environment that has triggered this record-breaking rise in posted jobs. Banks that laid people off during the pandemic now need to re-recruit - and to cope with the impact of The Great Resignation. Plus, economic bounce back is creating a general boost in workload for organisations in the banking and financial services sector.

A new partnership has been announced between Hong Kong's ARTA TechFin and China's Digital Technology of Insurance, focused on creating a key new wealth resource for the Greater Bay Area. Together, these two partners will deliver a technology-driven insurance and wealth management resource, with the first deadline by Q3 of this year. The partnership's initial focus will be on the Greater Bay Area insurance industry and will be designed to improve the digital resources available to traditional insurance brokers, providing many more options when it comes to servicing high net worth clients. This will include tech-driven sales support and training, a proprietary sales-focused SaaS system and access to an insurtech innovation centre in the region. Being able to modularise insurance policy data and integrate more sophisticated actuarial modelling and data analytical capabilities will be a big advantage for brokers and agents in the region. It will enable them to streamline the way they operate and save time on transaction processing.

The global pandemic has squeezed the logistics and supply chain industry in many ways, especially when it comes to talent pipelines. Now, new research has revealed that companies across the APAC region are increasingly turning to the contingent workforce in order to solve the challenges of supply chain recruitment. Headcount shortages are affecting many organisations and this, combined with the impact of COVID-19, plus increasingly sophisticated technology and economic uncertainty, has meant that many enterprises are forced to look for new ways to survive and thrive. While the contingent workforce is already a big part of workforce planning for businesses in the APAC region, the research showed that 25% plan to increase their use of contingent workforce in the next two years. 58% of businesses already use a contingent workforce when it comes to headcount shortages and 74% are likely to reward a contingent worker at the same level, or better, than full-time employees.

Digital transformation is a theme in many sectors today - including in Australia's water and wastewater market. Innovation is driving change across the board, although many of the bigger enterprises are moving at a faster pace thanks to more sizable budgets allocated to acceleration. One of the major factors driving this desire for increased digital transformation is the need to optimise performance and efficiency. Reducing non-revenue water loss and investing in better customer service are also much easier to support with the right digital infrastructure in place. This innovation will also ensure a sustainable water supply for the future in Australia, as well as improvements in workplace safety and the way that water and wastewater services are delivered. Some of the opportunities that organisations are already looking to take advantage of through innovation include decentralised water systems, more recycling, resource recovery from wastewater and water-energy linkages. With innovation at the helm the Australian water markets are primed for ongoing transformation.

Investing in environmental, social and governance (ESG) targeted opportunities is increasingly becoming a theme in the private equity world. Singapore's Azalea, a private equity manager based in the city-state, is one of the latest to move some of its considerable expertise in this area. It comes via the launch of the Altrium Sustainability Fund, which will be investing in ESG opportunities in order to balance both private equity returns as well as positive environmental and social outcomes. It is a fund-of-funds product, which means that it can be used by institutional and other accredited investors to create an investment portfolio that delivers on the sustainability front. Azalea is the fund sponsor and also the co-seed. Aviva and financial services company Singlife have also stepped up to help establish the new sustainability fund. Each one is contributing $50 million in order to get the fund up and running and to help it start delivering on the idea of private equity as a force for good.

Renewable energy is a thriving market and all the signs indicate that the next few years are going to be incredibly positive for the sector globally. Take Japan, for example, where the market for renewable energy is forecast to achieve a CAGR of 11.2% between 2022 and 2027. Japan does face some challenges when it comes to renewable energy, not least a lack of grid infrastructure in many rural areas that could restrict the size of the market. However, there are many opportunities too, particularly as the impact of the pandemic begins to lift. Governmental policies tend to be supportive towards renewable energy in Japan and there are incentives and tax breaks for people who install solar panels, for example. Plus, increasing awareness of environmental issues is having a big impact on how pressing the need for more renewable energy provision has become. As a result, the growth forecasts for the next five years are impressive.

Increasing compliance concerns have been a key theme across the banking and financial services sector in recent years. As pressure grows on enterprises to be more responsive, the market for global banking risk management is set to boom. Many banks have not been able to develop the internal competencies necessary to deal with the increasingly heavy burden of compliance. That's especially so given that compliance has expanded significantly in recent times to include additional risk sources, from channel and product to customer and operations. One of the biggest challenges that many organisations face is the way that risk management and compliance have become entangled with many other areas of operations and yet existing processes don't take this into account. For example, many banks have separated out risk management from customer experience programs even though the two are clearly interlinked. As a result of all these factors, there is going to be an increasing need for talent in global banking risk management and the market is set to boom.

Singapore continues to prove its position as a vital centre for fintech in the APAC region, attracting a wealth of investment and incubating some exciting enterprises. Aquariux, which is based in Singapore is one of those enterprises, a fintech start-up that has recently announced an opportunity for significant growth. The start-up revealed in April that it has raised US$2.2 million in pre-seed money from private investors, capital that the company plans to use to expand its workforce beyond the current team of 30 employees. Aquariux was established back in October 2020 and its business is focused on tech solutions in payments and trading, among other areas. It also provides a range of other services, including blockchain integration. In addition to the investment capital, the start-up also announced Kelvin Chia as its CEO. Chia brings more than a decade of building business strategy, subscription revenue, and B2B customer ecosystems that will be vital to Aquariux as the business develops.

2021 was a record year for DHL - and 2022 looks set to continue this trend. Figures published earlier in 2022 show that Deutsche Post DHL Group revenue was up more than 22% to a record EUR81.7 billion. Air cargo volumes increased by 25.7% but, despite this positive movement for DHL, the group lost its position as the world's largest air freight carrier in terms of volumes (losing out to Kuehne+Nagel). As a result, we can expect to see bold expansion plans from DHL in the coming year, including the order of six new B777 widebody freighter aircraft designed to further enhance the capability and reach of DHL's global network. The B777s ordered by DHL are considered to be the most fuel-efficient aircraft in their class and will give the global logistics firm new reach when it comes to connecting to locations such as Hong Kong and other global logistics hubs.

Construction is an industry that has weathered the storm over the past few years and now there are green shoots emerging. In states such as Ohio, commercial real estate prices have reached new highs and expansion is forecast across all areas of the sector. This includes growth trends in water supply, transportation and S&WD. Of course, there have been some more challenging trends too, including the labor shortages that have affected the construction sector nationwide, as well as the supply chain issues that many industries have struggled with. Another key trend is the growth in demand for skilled construction workers - job postings are up 43%, which means that the need for workers is currently higher than the supply. This is a trend that looks set to continue for some time, as there is a mismatch between the skill sets that many workers have available and the qualification levels required. Construction activity, especially in areas such as mining in locations like Ohio, looks set to continue to grow throughout the year.

New figures have revealed that a record number of insurance companies are planning to increase staff employment over the course of 2022. 72% are already looking to boost headcount this year, despite the major squeeze that already exists in the labor market. For many organizations in insurance, this is the most competitive labor market yet and there is huge competition for the brightest and best talent. This is thanks to the number of people retiring from the sector increasing at the same time as significant proliferation in job opportunities and openings, as well as the creation of brand-new roles. The main reason for companies seeking to boost headcount over 2022 is an anticipated increase in business volume over the coming 12 months - just 3% anticipate any staff reductions will be necessary. Interestingly, most insurers are planning to offer flexible working as standard as they seek to fill these new roles. 89% will offer a hybrid working model and 45% fully remote working options.

Thanks to the pandemic we have seen a fundamental shift in the way that people want to work. Asset management is an industry that has experienced expansion and prosperity during the pandemic - private capital returned 15.5% in 2020 according to a Deloitte report, and is likely to continue to see positive growth in assets under management in 2022. However, to a certain extent this ongoing growth is going to rely on how willing organisations in the industry are to evolve and adapt the way asset managers work going forward. In particular, there is the need for a focus on more flexibility, such as robust working-from-home policies, as well as the infrastructure to support this. More training and development have also become a priority for those working in asset management and strategies to communicate values will be key to staff engagement. As for many enterprises today, asset management firms also need to have a clear focus on more diversity and robust policies and strategies to make this happen.

Since the impact of the pandemic has begun to ease somewhat, confidence levels have started to rise. Typical operating conditions are returning for many organisations, with others going above and beyond pre-pandemic levels thanks to innovation in services, infrastructure and delivery driven by recent change. However, there is still plenty to keep CFOs up at night in 2022, with supply chain disruption remaining high up the list. Supply chain issues are forecast to continue throughout the year and only 10% of CFOs expect problems to be resolved imminently. Small enterprises tend to feel more powerless - waiting for problems to be handled elsewhere - while larger businesses are taking steps to insulate against supply chain delays, such as reconfiguring supply chains or holding more stock. In addition, there are plenty of other issues weighing heavy on the minds of CFOs this year, including the need for greater automation and digital transformation. Two of the most pressing areas demanding attention of strategic leadership right now are employee retention and developing a talent pipeline. Addressing these challenges has led to companies trying a range of solutions from greater incentives to more flexible working options.

Key hiring and recruitment trends provide vital insight into where executive recruitment is going in 2022. Executive search and leadership talent specialists Leathwaite are focused on supporting companies in finding future leaders - and using all available tools to help achieve this. This year we're likely to see specificity much more of a priority, with success rates higher thanks to the use of AI, data and analytics and assessment tools. It's going to be key for businesses to start using more tech-driven recruitment tools and to focus on skills-based hiring, where relevant experience is as important as a CV full of skills and qualifications. In an employee's market developing the employee value proposition is a big trend this year, with organisations updating policies, messaging and benefits so that they are reflective of values and priorities. Equally as important will be a focus on diversity, equality and inclusion. Greater leverage for employees also means that they are likely to have much more influence when it comes to salary negotiations.

2022 could be an interesting year for CIOs and IT leaders. Pressures are beginning to bite in terms of talent shortages but there are also a wealth of opportunities thanks to ongoing digital transformation and increasingly innovative technology, such as analytics and AI. CIOs say they are increasingly being positioned to influence the agenda within their organisations, fusing the traditional CIO role with that of a CEO, and sometimes CFO, and taking on challenges relating to productivity and efficiency. Expansion in cloud usage and greater use of data to unlock sustainability have also been identified as key trends for 2022. When it comes to tackling those talent shortages, CIOs predict the most demand in roles relating to information security, analytics, architecture and cloud and engineering. From increasing wages to attract more talent, to streamlining cloud-first and platform-based architectures to adopting low-code/no-code solutions to minimise the need for niche recruiting, there are many responses that businesses could adopt, according to predictions from CIOs and IT leaders.

Executive recruitment has undergone significant shifts over the past couple of years, whether those relate to the pandemic or internal sector change. In particular, a large proportion of executive recruitment now takes place in a virtual environment. While COVID-19 may be largely under control, there are clear benefits to more virtual hiring processes, from cost to convenience and the opportunity to really get to know candidates on a deeper level. Convenience is an especially significant benefit and more virtual interviewing has seen fewer attendance fails at first interviews, as it's much easier to find time in a busy schedule to attend a virtual meeting. The road ahead for executive recruitment is one focused on diversity - and the more virtual nature of hiring today makes it easier to achieve this. There are many tools to help remove inherent biases from the early stages of an interview process when it is virtual, for example, and virtual interviews can be easier to fit around caring or childcare commitments.