Chamber News

This December, the Chamber have delivered Christmas breakfasts across Norfolk, offering members a chance to attend a festive networking event at a venue nearest to them. We hosted the business breakfasts with a festive spin at venues in Great Yarmouth and Norwich, with the West Norfolk breakfast taking place Wednesday 13th.

First up we had the Great Yarmouth breakfast which took place at the Town Hall where 40 members came to meet new businesses. The morning was hosted by East Coast Hospice, who guided guests through a morning of breakfast and festive networking activities, including a ‘guess the intro’ Christmas music game.

Next up, was the Norwich edition. Over 140 guests came to The Holiday Inn for a morning hosted by The Big C who encouraged the room full of chamber members, dressed up in their finest festive attire, to take part in activities such as Christmas Pictionary!

To round up the Christmas breakfasts, members from West Norfolk will come to network at Knight’s Hill Hotel in King’s Lynn. The morning will be hosted by East Anglia Children’s Hospice, who will be bringing some festive fun to the room and informing delegates about the work they are doing for young people with life-threatening conditions.

Across the breakfasts so far, guests were extremely generous and brought along gift donations for each of the charities involved with the breakfasts in order to support their causes. This is sure to continue at the last instalment in West Norfolk.

If you are interested in attending the last breakfast in the series in Kings Lynn, email [email protected] or visit our website – https://norfolkchamber.co.uk/events.

The British Chambers of Commerce (BCC) has today (Monday) slightly downgraded its three-year outlook for the UK economy, cutting growth expectations from 1.6% to 1.5% in 2017, from 1.2% to 1.1% in 2018, and from 1.4% to 1.3% in 2019.

The slight downgrade to the leading business group’s forecast is mainly driven by a slightly weaker contribution from net trade across the forecast period, while household consumption and business investment are expected to remain sluggish through the forecast period. UK productivity is also forecast to remain subdued.

Inflation is expected to remain elevated in the short-term, peaking at 3% in the final quarter of this year, and then moderate slightly as the impact of the post-EU referendum slide in sterling fades. However, inflation is forecast to outpace earnings until 2019, eroding real wages and weighing on consumer spending, a key driver of UK economic growth. As such, our new forecast is that the next increase in UK official interest rates, to 0.75%, will occur in Q4 2019.

The BCC expects UK public sector net borrowing to be £12.4 billion higher over the next three years than predicted by the Office for Budget Responsibility at the 2017 Autumn Budget, with slower growth expectations likely to reduce the Exchequer’s ability to generate tax revenue.

With the UK economy expected to continue on a path of slow and sluggish growth, the business group is urging a far stronger focus on ‘fixing the fundamentals’ of the UK economy over the coming year – as skills and labour shortages, congested infrastructure, patchy digital connectivity, a slow planning system and high up-front costs stymie investment and stunt productivity improvements. At the same time, to lift the cloud of uncertainty over business communities, the UK government must do all it can to move negotiations with the EU forward, secure a transition deal and answer business’s practical questions around trade.

Key points in the forecast:

• UK GDP growth forecast for 2017 is downgraded from 1.6% to 1.5%, and is expected to slow to 1.1% in 2018 (downgraded from 1.2%), before rising to 1.3% in 2019 (downgraded from 1.4%). Quarter-on-quarter growth in Q4 2017 is forecast to slow slightly to 0.3%.
• Export growth is expected to grow at 4.3% in 2017, 3.1% in 2018 and 2.9% in 2019 as global growth drives international demand, while import growth is expected to grow by 3.7% in 2017 2.7% in 2018, and 2.9% in 2019. This leaves our net trade position weaker across the forecast period than we previously forecast in Q3.
• Productivity is expected to grow by 0.5% in 2017, 0.6% in 2018 and 0.5% in 2019
• Inflation of 2.7% is forecast for this year, and 2.8% and 2.5% in 2018 and 2019 respectively. Inflation is expected to peak at 3% in the final quarter of 2017, in line with our previous forecast
• Our new forecast is that the next increase in UK official interest rates, to 0.75%, will occur in Q4 2019
• Growth in consumer spending is expected to slow from 1.6% in 2017 to 1.0% in 2018, before rising to 1.3% in 2019
• Business investment growth has been upgraded from 0.4% to 2.1% for 2017 as a result of revisions to ONS data, but is expected to slow to 0.8% in both 2018 and 2019
• Looking at sectors, manufacturing growth has been upgraded from 1.4% to 2% in 2017, and is expected to grow at 0.9% and 1.1% in 2018 and 2019. Construction growth has been revised upwards for 2017 from 1.3% to 3.2%, and is expected to grow at 0.5% and 1.0% thereafter. Services sector growth has been downgraded from 1.8% to 1.7% in 2017, and is forecast to grow at 1.3% and 1.6% in the following years
• Public sector net borrowing is expected to total £52.7 billion in 2017, £47.8 billion in 2018 and £36 billion in 2019.

Dr Adam Marshall, Director General of the British Chambers of Commerce, said:

“Despite pockets of resilience and success, and strong results for some UK firms, the bigger picture is one of slow economic growth amid uncertain trading conditions.

“Clarity on the nature of the UK’s future trading relationship with the EU is needed to ease the cloud of uncertainty that lingers over business communities, and which is undermining many firms’ investment decisions and confidence. Certainty over the course of Brexit would also help to stabilise markets, and reduce the volatility of sterling, which businesses say is increasing their costs.

Nova Fairbank, Public Affairs Manager for Norfolk Chamber, said:

 “Even the best possible Brexit deal won’t be worth the paper it’s written on if the government fails to address the many long-standing, and well-known, barriers to growth here at home. Ever-rising upfront costs, a labour market at capacity, growing pressure on land use, and a physical and digital infrastructure in need of investment and expansion, all prevent Norfolk firms from reaching their potential. Whilst the recent Budget made a welcome steps in the right direction for Norfolk, with funding for the Great Yarmouth Third River Crossing, concerted and sustained action to fix the fundamentals is needed to encourage business investment and growth for our region.”

Suren Thiru, Head of Economics at the BCC, said:

“The downgrades to our growth forecast confirm that the UK economy is in a challenging period with growth likely to remain well below average for a prolonged period.

“Continued uncertainty over Brexit and the burden of upfront cost pressures facing businesses is likely to stifle business investment, while falling real wage growth is expected to continue to weigh on consumer spending. Furthermore, with businesses continue to report that the post-EU referendum weakness in sterling is hurting as much as its helping, the significant imbalances currently facing the UK economy is expected to persist through the forecast period.

“The continued weakness in UK’s productivity is a key concern and reflects the lack of progress in dealing with some of the deep-rooted structural problems in our economy, from skills shortages to creaking physical and digital infrastructure.

“Despite the downgrades to our growth projections, the risks to our forecast remain on the downside. Should the UK face a disorderly exit from the European Union, the UK’s growth rates may be materially lower over the medium term.”

Commenting on the news that the UK government and the European Commission have reached a deal to conclude the first phase of the Brexit negotiations, Chris Sargisson, Chief Executive of Norfolk Chamber said:

“Norfolk businesses will be breathing a sigh of relief that ‘sufficient progress’ has been achieved. After the noise and political brinksmanship of recent days, news of a breakthrough in the negotiations will be warmly welcomed by companies across the UK and Norfolk.

“Business will particularly cheer the mutual commitment to a transition period to support business confidence and trade, and will want the details confirmed swiftly in the new year when negotiators move on to the big questions around our future trade relationship with the EU.

“For business, a swift start to trade talks is crucial to upcoming investment and growth decisions. Companies all across the UK want absolute clarity on the long-term deal being sought, and want government to work closely with business experts to ensure that the details are right.

“Businesses want answers on what leaving the EU will mean for regulation, customs, hiring, standards, tariffs and taxes. The job of the UK government and the European Commission now is to provide those answers – and do everything in their power to ensure vibrant cross-border trade between the UK and EU countries can continue.”

On the question of citizens’ rights, and the status of EU employees in UK firms, Mr Sargisson added:

“The biggest priority for many firms since the EU referendum has been to get clarity and security for their European employees, whose contribution to business success across the UK is hugely valued. We are delighted that they, as well as UK citizens living and working in the EU, now have more clarity and can plan their future with greater confidence.”

The British Chambers of Commerce, CBI, TUC, FSB and EEF have made a joint plea to guarantee the rights of EU and UK citizens before Christmas.

Four million EU and UK citizens face a second Christmas of uncertainty about their right to remain in the countries they now call home. Despite signs that negotiators have made progress on this issue, they are being treated as bargaining chips and are left unsure of their position, especially if there is no deal between the UK and the EU.

Trade unions and businesses are deeply concerned that our friends, colleagues and workers continue to be in limbo. They deserve better treatment, given their vital contribution to our communities, businesses and public services.

The right to remain of the four million must be resolved. There must be certainty whatever the outcome of the Brexit negotiations. The UK government and EU27 should unilaterally guarantee their status and future rights before Christmas. Neither side need wait for the other to do this.  If many who go home for holidays simply do not come back, this would have a damaging impact on critical public services and growth.

Adam Marshall, Director General – British Chambers of Commerce

Carolyn Fairbairn, Director General – CBI

Frances O’Grady, General Secretary – TUC

Mike Cherry, National Chairman – Federation of Small Businesses

Stephen Phipson, Chief Executive – EEF

Commenting following Prime Minister Theresa May’s meeting with European Commission President Jean-Claude Juncker, and wider developments in the Brexit negotiations, Dr Adam Marshall, Director General of the British Chambers of Commerce, said:

“Business communities on both sides of the Channel have long been urging negotiators to reach a pragmatic agreement on withdrawal issues, so that we can move on swiftly to transition and trade talks.

“Yesterday’s statements enhance the prospects of finally securing a much-needed transition deal and moving on to the issues that are most important to business, investment and economic well-being on all sides.

“It is imperative to keep up the momentum, as it’s high time to answer the huge practical questions on regulation, customs, standards, tariffs and taxes that lie at the heart of what businesses need to know in order to plan for the future.”

The British Chambers of Commerce (BCC) today (Thursday) releases the results of its survey, in partnership with American Express, which finds the majority of businesses expect the fall in sterling to increase their costs.

The survey of over 1,300 businesses, including those in Norfolk, found that 63% of businesses expect their costs to increase in the next 12 months as a result of the devaluation in sterling, including a quarter (24%) who expect costs to rise significantly. In comparison, only 6% of firms expect their costs to decrease.

Over 70% of manufacturers (73%) and business-to-consumer firms (71%) anticipate costs increases, compared to 55% of business-to-business firms, according to the results.

The survey also found that many businesses trading abroad are leaving themselves exposed to currency fluctuations, with nearly half (46%) of UK firms not taking proactive steps to manage currency risk. Smaller firms are less likely than their larger counterparts to be managing risk (44% of firms with 1-9 employees, compared to 70% of those with 50-249). Manufacturers have the highest proportion of businesses managing currency risk (76%), compared to B2C (57%) and B2B (39%).

The findings of the survey highlight the extent to which the depreciation in sterling is expected to compound the price pressures on Norfolk firms, underlining the need to ease the domestic cost of doing business. There is also a clear need for more support and information for exporting businesses on the importance of managing currency risk.

Other key findings in the survey are:

• The most common forms of managing currency risk are invoicing in sterling (27%), opening foreign currency accounts (15%), and waiting for an advantageous rate and buying using the spot market (15%)
• Less than a quarter (24%) of businesses say they have a complete understanding of the types of international payment methods available, with 23% saying somewhat and 13% none at all
• The biggest challenges businesses face in making or receiving international payments are delays (21%), bad or misleading exchange rates (16%) and hidden fees (16%)

Julie Austin, International Trade Manager for Norfolk Chamber of Commerce said:

“Weak sterling reflects the current climate of political uncertainty and lack of clarity on the Brexit process. A clear and firm strategy from government about the nature of the UK’s future trading relationship with the EU would go a long way to reassure and stabilise markets.

“While businesses await answers on Brexit, and a return to a stronger currency, they must take the necessary steps to prepare for potential risks. It’s concerning to see the proportion of Norfolk companies not actively managing currency risk. For those trading internationally, it makes good business sense to explore the options available to insure against currency fluctuations.

“Norfolk companies are clearly feeling price pressure from the depreciation in sterling. The government made a crucial first step in the Budget with action on business rates, but further steps need to be taken on the upfront cost of doing business, so that firms can mitigate currency pressures and grow their business.”

Karen Penney, Vice President & General Manager, Global Commercial Payments and Small Business Services UK, said:

“Whilst managing currency fluctuations can seem daunting, technology is rapidly lowering these barriers, helping to streamline the payment process and granting added layers of security to businesses. At American Express we know that simple currency tools such as forward contracts can effectively protect a business from exchange rate volatility by guaranteeing a fixed rate. Not only will this protect margins, it will enable more accurate forecasting and budgeting. With the right tools and resources, businesses can unlock growth opportunities both at home and abroad.”

Businesses throughout the UK came together for the Chamber Business Awards to celebrate outstanding success in business and recognise the achievements of regional Chambers.

Returning for its 14th year, the annual award ceremony is a showcase event in the national business calendar that highlights ‘the role of business in delivering growth and prosperity for the UK and local communities’.

Norfolk based firm epos now were crowned regional winners in the East of England, receiving the ‘Commitment to People Development’ Award and were shortlisted as a finalist at the national awards ceremony.

Double winners AnyJunk received the coveted Business of the Year title and ‘Best Use of Technology’ award for their innovative use of technology to change the productivity and efficiency of the waste disposal industry.

Commenting on this year’s awards, Francis Martin, President of the British Chambers of Commerce (BCC), said:

“I never cease to be surprised by the innovation and ambition of UK companies, and the contribution firms of every size and sector make to their local communities.” 

The full list of winners were:

·         Best Use of Technology – AnyJunk, a London based bulk waste collector for business and homes, is using technology to change the productivity and efficiency of the waste disposal industry

·         Export Business of the Year – Linwoods, a bakers and health food business based in Armagh, has made excellent use of consumer and market research and sells its products to retailers in over 30 countries

·         High Growth Business of the Year – ICON Aerospace Technology Ltd, a world leader in highly engineered polymer-based products for aerospace and defence applications, has increased turnover by 30% and created 150 jobs in less than two years

·         Excellence in Customer Service – Stockport Homes, delivers affordable housing and accommodation solutions, and has driven customer satisfaction through the implementation of a Continuous Improvement Framework

·         Small Business of the Year – DNA Worldwide, providers of DNA, drug and alcohol testing, has used state of the art technology to develop a range of new services, and has ambitious plans to expand

·         Commitment to People Development – Manchester & Cheshire Construction Co. Ltd, has shown impressive commitment to the training and development of staff, participating in 252 training days last year

·         Business and Education Partnership – Ahead Partnership, based in Leeds, has worked to address the soft skills gap, and brings together teachers and employers to create bespoke programmes of learning

·         Best Use of Social Media – JC Social Media Limited, began trading from a spare bedroom in Birmingham in 2011, and use social media to help clients connect with new customers, gaining 28.9m impressions for over a four-month period for a client’s event

·         Health and Wellbeing – Flynn, a building and maintenance business based in Northern Ireland, developed a ‘Boost’ initiative to improve moral, mental wellbeing and communication

·         Chamber of the Year – Greater Manchester Chamber of Commerce, has grown by 11% in the last three years and worked closely with other chambers in the region to share best practice

·         Excellence in International Trade – Northamptonshire Chamber (incorporating Milton Keynes Chamber of Commerce) offers members a wide portfolio of services relating to trade, including International Trade Forums and regular workshops

·         Most Effective Campaigning – North & Western Lancashire Chamber of Commerce, has shown determination and a dedication to the local business community in its campaign for energy exploration in the county

·         Excellence in Membership Services – Staffordshire Chambers of Commerce has grown by 12% over the last two years, and an impressive 20% of Staffordshire’s workforce are in membership

The EDP’s Future 50 businesses were revealed last night at the Future50 Live! conference at the Enterprise Centre at the UEA. Future50 is a collection of Norfolk and Suffolk’s most innovative and ambitious companies.

We are happy to announced that fourteen of Norfolk Chamber of Commerce members were recognised, including our Gold Patron, MIGSOLV, a world class data centre provider in Norfolk. 

Chamber members recognised include; 

• The SenLab Group 
• Your Own Place CIC 
• Gurney Environmental 
• Pruce Newman Pipework 
• Chadwicks Limited 
• ShrinKit Ltd 
• CSSCloud Computer Services 
• Pickr 
• Naked Element 
• Furthermore Marketing 
• Migsolv 
• Full Mix Marketing 
• Heatlink 
• Nu Image

To see the full list of the Future 50 click here. 

Commenting on the publication of the rail strategy by the Department for Transport, Chris Sargisson, Chief executive of Norfolk Chamber said:

“The prospect of increasing capacity by re-opening some railway routes will be cheered by several of Norfolk’s business communities, in particular the supporters of the re-opening of the King’s Lynn to Hunstanton route.  It will also help to crowd in local housing and economic developments in many areas and will go some way to reassure firms in this region that their economy is not being neglected. 

“The new joint teams need to have regular dialogue with businesses to better understand the issues and opportunities at the local level, and businesses must be consulted on the competitions for new franchises.

“We look forward to working with government to ensure that Norfolk and the UK’s rail infrastructure is reliable and fit for purpose as we leave the European Union, giving Norfolk businesses the best domestic environment possible in which to thrive.”

The planning system in England is more complex, costly and difficult for business than it was 5 years ago, according to a major report published today (Monday) by the British Chambers of Commerce.

The BCC report says that five years after the introduction of the National Planning Policy Framework (NPPF), which was designed to make the system less complex and more accessible, businesses are experiencing too many delays and barriers to investment. 

The report finds that the government’s focus on new homes is leading to increased pressure on the availability of employment land and premises. A BCC survey of over 900 businesses across the country revealed that one in five firms are struggling to find the land and premises they need. 

The report says the government’s pre-occupation with housing at the expense of other land uses is also leading to localised tensions. New homes are being build adjacent to long-established businesses in towns and cities and causing serious problems, both for new residents and businesses. 

The report urges the government to review the NPPF to ensure that the needs of business are on an equal footing with other stakeholders.

Key recommendations include:

• Employment land and uses should be given equal priority to housing, so that people can access jobs and businesses have the space they need to grow and compete. 
• Where shops and offices have been converted to homes, councils should ensure there is an alternative supply of quality commercial office space available elsewhere.
• Where there is high demand for new housing and jobs, there should be intelligent use of the green belt to ensure local communities benefit from the delivery of new homes and infrastructure. 

Jonathan Cage, President of Norfolk Chamber and Managing Director of Create Consulting Engineers said:

“Access to affordable employment land and premises is essential for business innovation, expansion, and long-term competitiveness. Too many firms are now unable to find the land and premises they need.  We risk creating big problems for the future if we don’t get the right balance of jobs and homes. 

“Firms still face too many barriers, costs and delays as they negotiate the planning system. We need to find a way to make it work better, to provide the strategic certainty for businesses to make their own investment decisions and the freedom and flexibility they need to innovate, grow and compete globally.

“Planning for jobs and homes, together with up-front government investment in modern infrastructure, will give people better access to employment opportunities.   It will help businesses access a skilled workforce and provide the platform to compete globally.  The planning system must be looked into as part of plans to make the UK Brexit-ready.”

The British Chambers of Commerce, in partnership with DHL, today (Thursday) publishes its latest Quarterly International Trade Outlook, based on survey and documentation data from UK exporters.

The Outlook shows considerable price pressures amongst exporting businesses – but exporters are absorbing the impact for the moment thanks to stronger sales and orders.

The BCC/DHL Trade Confidence Index, which measures the volume of trade documentation issued by accredited Chambers of Commerce for goods shipments, rose by 2.25% on the quarter, and stands at the third highest level on record.

The survey, based on the responses of over 3,300 exporters, shows that in the manufacturing sector, exporters are enjoying strong sales and orders in foreign markets, and are also reporting improvements in domestic sales and orders.

The results of the survey indicate the price pressure from the cost of raw materials is high across the board for exporters (86% in manufacturing, 42% in services). 68% of exporting manufacturers consider exchange rates as a concern to their business.

Exporters are also more likely to have tried recruiting in the last three months. However, firms across the UK economy are struggling to find the right skills, with 70% of manufacturers and 57% of services firms reporting recruitment difficulties.

The findings suggest that the fall in sterling is increasing price pressure for businesses across the economy, but particularly in manufacturing. However, many of those businesses that export have been able to offset the fall in sterling thanks to timely improvements in sales and orders, both overseas and at home.

Key findings from the report:

The BCC/DHL Trade Confidence Index, a measure of the volume of trade documentation issued nationally, rose by 2.25% on the quarter. The Index now stands at 126.51 – up 4% on Q3 2016 – and stands at the third highest level since records began in 2004

• 44% of exporting manufacturers and 30% of exporting service firms reported increased export sales in Q3. 41% of exporting manufacturers and 26% of exporting service firms reported increased export orders
• 41% of exporting manufacturers reported that domestic sales had increased, and 38% domestic orders increased in Q3 2017
• 39% of exporting manufacturers expect their prices to rise. Of these firms, 86% cited raw materials as a cost pressure
• 68% of exporting manufacturers cite exchange rates as a concern to their business, and 49% in the services sector
• 33% of exporting manufacturers and 31% of exporting services firms view inflation as a concern to their business

Commenting on the findings, Julie Austin, International Trade Manager for Norfolk Chamber said:

“While it’s encouraging to see many exporters reporting improved performance on the back of rising demand in key markets, including the Eurozone, price pressures remain a real cloud on the horizon for Norfolk firms.

“The depreciation of sterling has undoubtedly benefited some firms, but has ratcheted costs up significantly for others. Taken together with higher domestic costs facing businesses, a tipping point may soon be reached for some firms – with consequences for investment, recruitment and trade.

“Many Norfolk exporters are also being hampered by issues in the domestic business environment, most notably the widening gap between business skills needs and the pool of available labour. Trading businesses in some areas now say that there is a generalised labour shortage in their area, which could put a brake on their overseas activity if it is not addressed. This is a sobering reminder that the focus needs to be on the fundamentals here at home, as well as the high politics of Brexit and global trade policy.”

Ian Wilson, CEO DHL Express UK and Ireland, said:

“Now is an interesting time to be part of the UK’s export industry. Whilst it remains shrouded in uncertainty about what Brexit will look like and the implications for UK businesses large and small, those businesses are demonstrating a defiantly positive export performance.

“The world is now more connected than it ever has been, and this report shows that UK businesses are embracing this connectivity, despite the lack of clarity about what lies ahead. We must ensure that businesses remain able to meet international demand and, in doing so, keep the UK at the forefront of buyers’ minds when shopping cross border.”

A company in Egypt is seeking distribution partners in the UK for their products – high quality Egyptian cotton items and fresh produce.

The two attachments below will provide more information about the company and their activities.

If you are interested in this great opportunity, please contact us on [email protected] and we will pass your details on.