NHBF survey indicates positive shift for nail & beauty businesses
By Callie Iley | 19 May 2023 | Business, News
The NHBF State of Industry survey reveals a promising shift in the nail and beauty industry, with businesses reporting a return to profitability, increased confidence in survival, and intentions to grow.
Findings from the NHBF’s quarterly State of Industry survey show a return to positivity, repeating trends seen in spring/summer 2022, reporting that 43% of businesses make a small or good profit and 38% are breaking even. This contrasts with 19% of businesses reporting small or substantial losses.
Moreover, business survival expectations have also improved in line with the positive outlook held in July 2022, with 64% of businesses reporting confidence in their survival, in contrast with 49% in January 2023, however a third of businesses remain unsure of their survival until September 2023.
41% of businesses report their intention to grow their business, seeing an 11% increase from January 2023, with a further 41% reporting intentions of staying the same size. There has been a decrease in businesses reporting plans to downside or handover, seeing 25% of businesses in January 2023, decreasing to 19% in May of the same year.
The survey sees 64% of businesses reported raising their prices in the last quarter, and 51% shared intentions of doing so over the next three months, seeing a slowing trend of raising prices.
Top concerns reported for business owners are energy costs, increased cost of trade supplies and increases to the National Minimum Wage/National Living Wage. 23% businesses have cut back on taking on staff and apprentices, however, 6% more businesses (15%) reported intentions to take on apprentices in the next three months than in January 2023, and 21% are likely or definitely looking to take on new staff in the next three months.
In January 2023, 71% of State of Industry respondents reported either partial or full reliance in government support, decreasing to 58%, similar to levels seen in spring/summer 2022.
Richard Lambert, chief executive of the NHBF, comments: “Overall, this latest NHBF State of the Industry survey is showing a more positive feeling in general and improvement for most of the industry.
“Hopefully, the announcement of a rise in funding for the apprenticeship standards will encourage more employers to change their mind about recruiting junior staff, and we will start to see more young people come into the industry – plus this will help businesses to grow. As an organisation we will continue to use this vital information to help inform our work with government for their planning on issues that directly affect our industry.”