At a recent meeting of the Bank of England with Norfolk Chamber members, Tim Pike, the Bank of England Agent for the East of England had three key questions for Norfolk businesses:
1. Against the current level of turnover, what additional percentage of sales could each organisation expect to handle before they reached current capacity? 2. Were skills shortages and wage inflation pressures causing issues? 3. How important was the exchange rate to those who were exporting?
Many of the businesses identified they had the capacity to accommodate an increase in sales of between 10% and 20% before they would need to consider increases in staff. However many organisations flagged that skills shortages were a major concern to them, in particular attracting young people into manufacturing and engineering roles. Some companies were starting to experience wage inflation pressures and had noticed that the employment market was beginning to move.
Of the exporters around the table, they highlighted that the overseas exchange rates were being monitored carefully and one exporter highlighted that they would probably need to switch from Euros to Pounds Sterling, as the exchange rates were to their detriment at present.
As part of the round table discussions, the availability of suitable premises to expand into was also raised. There does not appear to be a large quantity of good quality buildings that are available immediately. Steps are being taken to improve the supply, however most businesses, looking at the market now, could not afford to wait up to 18 months for new purpose-built premises.
Overall Chamber members highlighted that business was doing well and confidence was growing. Most could handle increased sales and plans were in place for growth within their businesses, however skills shortages still remain a key concern.
