The UK economy continues to encounter challenges, but it is already in recovery mode. The country is navigating through the impact of the pandemic, separation from the European Union, and the ongoing geopolitical turmoil to the east. In 2023, it is inevitable for changes to happen in some of the UK’s industries.
Growing renewable energy industry
The UK government has made it a goal to reach net zero emissions by 2050. As such, the renewable energy sector is getting all the boost it can get. There are significant investments in hydrogen power, solar energy, as well as wind power generation. The UK government says that as of 2022, renewable and nuclear power generation already comprise 56% of the country’s power sources. Things are expected to get better in the next few years.
AI-affected industries
According to the UK International Trade Administration, the UK artificial intelligence market is worth £17 billion as of 2022. This market is expected to near the one-trillion mark by 2035. UK businesses are expected to embrace AI, with large companies leading the pack (68%), followed by midsize enterprises (34%) and small businesses (15%).
This affinity to AI can be disruptive, though. Some businesses may have to go through major changes to adapt. The search engine optimization (SEO) industry, for example, may need to tweak the services they offer with the rise of AI chatbots that serve as convenient alternatives to search engines. They may have to veer away from conventional techniques and emphasise answer engine optimisation. However, it is almost impossible for SEO to become irrelevant. As Google’s John Mueller asserts, SEO will never become obsolete. Some SEO packages would also need to take into account the emergence of AI-generated content in response to Google’s stance on AI content, but SEO is here to stay.
Nevertheless, AI is expected to have a net positive impact on the UK economy. It will benefit various industries, including insurance, banking, and healthcare. Artificial intelligence can automate various tasks to improve efficiency and bolster accuracy in business records and forecasts.
Healthcare
The UK healthcare sector is slowly returning to normal with lessons on efficiency and innovativeness. Healthcare facilities may no longer be serving as many patients as there were a few years back, but they see the urgency to improve. Telemedicine and remote patient monitoring have become permanent under the new normal. The government is investing in the healthcare sector not only to address inflation but also to make sure it is resilient. Also, institutions are now more mindful of their cybersecurity.
Agriculture
The United Kingdom passed the Agriculture Bill in 2021 to address post-Brexit concerns. It is slowly bearing fruit as it subsidises farmers in their efforts to attain sustainable farming practices. This will change agriculture in the UK towards environment-friendliness and sustainability. It is also expected to boost regenerative agriculture, which helps improve water cycles and maintain topsoil quality to ensure productive yields. Regenerative farming is also a way to build resilience against climate change. UK agriculture is not in its best condition right now, but the efforts to prop up growth are set to create significant beneficial changes.
Declining industries
Some industries in the UK are expected to fall, but this decline is not seen as a cause for alarm. These industries have been on a downtrend for quite some time and are expected to be replaced. IBISWorld analysed data from over 440,000 UK businesses and came up with a list that shows significant declines in some industries.
Hard coal mining and metals production are seeing double-digit revenue declines, with the former dropping as low as 30% as a shift towards sustainability and green energy progresses. Non-essential products such as video games, tobacco, garden supplies, pet products, home furnishing, and jewellery are expected to fall given the current economic climate. The drop in revenues from the sale of face masks and other respiratory protection products is also expected with the ebbing of the pandemic.
The year 2023 will bring about changes in various UK industries. Some will be good, others not will not be that favourable. What is important is for everyone to adapt and evolve with the changes. There may be challenges, but there will also be opportunities along the way.
