What we know from the latest State of the Industry Survey

The latest State of the Industry survey from the National Hair & Beauty Federation (NHBF) shows increasing positivity throughout the personal care sector as a whole. However, several factors still have a damaging impact on many businesses in the hair and beauty industries. Read on as we take a closer look at these factors, including those especially relevant to hairdressers. 

About the State of the Industry Survey

The NHBF State of the Industry Survey received 510 responses between 26 June to 10 July 2023, gathering views from a good representation of businesses in the personal care sector across all areas in the UK. Survey respondents included salon or barbershop owners, chair or room renters, home-based business owners, mobile or freelance practitioners, employers and the self-employed. The vast majority ie 90% of respondents are salon or barbershop owners. 10% are self-employed individuals, and 6% are involved in the wider space renting, mobile and freelance part of the sector (either the sole focus of their business or in addition to being a salon or barbershop owner).

Let’s take a closer look at the report findings:

The improvement we saw in April 2023 has persisted, with 43% of businesses in the hair and beauty industry making a small or good profit. The report showed that 42% are breaking even and fewer making a small or substantial loss. This progress is a good sign and will hopefully encourage everyone in the industry to stay strong. 

Rising prices

Over the previous three months, nearly half (55%) of businesses surveyed raised their prices, with the other half (52%) say they will do so over the next three months. Prices are rising because businesses are having to respond to continued rising costs. Energy costs are still at the top of business concerns (79%). While this report covers the hair and beauty industry as a whole, this statistic is certainly keenly relevant for hair salons as big energy users. The hope is that this report will raise awareness to the concern on energy. Equally, you can see that you are not alone in the struggle. The report also showed an increased cost of trade supplies and increases to the National Minimum Wage/National Living Wage.

Debt

Over half (56%) of sector businesses still struggle with debt. For 38% of those with debt, the debt itself has risen, and more than half (55%) say it will take more than two years to clear. But reliance on external support remains steady; over half of businesses (56%) are still partially or entirely reliant on government support. 44% say that they are not dependent upon continued support. Hopefully this number continues to improve but know that if you or your salon is struggling with debt, you are not alone. 

Staffing and recruitment

Staffing and recruitment intentions have improved. 28% of employers will definitely or likely take on new staff. And in a more positive turn, nearly a quarter (23%), up from 15% in April, are definitely or likely to take on apprentices in the next three months. These businesses are in the 43% that said they intend to grow their business either rapidly or moderately. The proportion of companies intending to remain the same size (42%) is similar to the previous survey, and 15% plan to downsize or handover the business (reduced from 19%). 

Overall

Richard Lambert, NHBF chief executive, made a comment on the report as a whole, saying: “Business survival expectations have improved and are the most positive we have seen since we began these surveys three years ago. Nearly three-quarters (72%, up from 64%) are confident of their survival. However, there is still a significant number of businesses (25%) who are not sure whether they will survive over the next six months, which demonstrates the impact of the energy crisis.  We are continuing to speak to the government and Ofgem about addressing the behaviour of some of the major suppliers in the non-domestic energy market.”

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