A survey published in December by the Chartered Management Institute compounds f ...

A survey published in December by the Chartered Management Institute compounds fears for business across the utilities sector. It shows that managers and business leaders in the sector are concerned about rising business costs, low levels of credit, the impact of employee disputes and low skill levels. The survey shows that senior executives in the construction sector are nervous about the year ahead. Asked specifically about business prospects for their organisations, 22% said they are ‘pessimistic’ about 2009. Those who are ‘uncertain’ about what next year will bring also rest at 22%. Unsurprisingly, it is clear from the findings that business confidence in the sector is being eroded by the economic climate and the knock-on effect of cash-flow problems. Some 46% said that rising energy costs would have a negative impact on their business during 2009, while 32% said that the availability of credit would create problems. Some also focused on the cost of redundancies, with 41% expressing concerns over ‘employment disputes’ and 38% worried about the impact of labour shortages. Respondents also remained concerned that efforts to kick-start the economy may stall, with 76% in the utilities sector suggesting consumer spending will plummet despite the recent drop in interest rates. Some 76% also believed that household debt will increase over the next 12 months and 32% said that rising levels of personal debt would hit business in the New Year. Yet it seems that, despite the pessimism in the marketplace, individuals in the sector are motivated to succeed. Some 14% still intended to change jobs in 2009. Some 16% also wanted to build their personal profile and 22% were committed to developing business contacts or networks. However, it is clear that these individuals recognise the need to ‘get qualified’ as a route to employability, with 14% in the utilities sector claiming they intended to take up a qualification or course in 2009 and 19% resolving to ‘build transferable skills’. Against this backdrop, three out of 10 employers in the sector suggested that gaps at the ‘higher end’ of the skills spectrum will have a negative impact on their performance in 2009. The problem is compounded with 70% predicting a decrease in training and development.