Chamber News

Yesterday, local businesses were invited to hear an economic update directly from the Bank of England at a meeting held at the Chamber’s office in Norwich.  A range of businesses attended the event including those from the manufacturing, retail and service sectors.

Tim Pike, the Bank of England’s Agent for the South East, provided an update on the national economy and discussed what the local economic picture looked like from the perspective of the businesses around the table.  Business confidence; investment and employee recruitment expectations; quantitative easing; and Brexit were amongst the topics raised at the meeting.

Feedback from the businesses highlighted that whilst an actual Brexit deal is still at least 2 years away, the business community intend to drive their businesses to success and invest for future growth and jobs.

Ahead of the general election, Norfolk Chamber is setting out the key Norfolk business asks for any future government.  The Chamber is calling on all the political parties to consider the importance for Norfolk businesses to be able to access fast, reliable broadband.

Technology and how we use it is evolving rapidly, but Norfolk’s digital infrastructure needs to keep pace.  As more and more businesses rely on technology, Norfolk Chamber is keen to ensure that both our digital infrastructure and our business community are ready to take advantage of new technology developments as they evolve.

Whilst approx. 86% of Norfolk has access to 24mbps, a recent British Chambers of Commerce survey, reported that the Norfolk business community still thought that Norfolk’s digital infrastructure was not yet totally fit for purpose.  Throughout the county, significant numbers of companies of every size and sector said they lacked reliable internet connectivity – a basic requirement for businesses to operate efficiently in today’s world.

Commenting on the need to provide more access to superfast broadband, Lynsey Sweales, a Norfolk Chamber Board Member and Director of Social B said:

“A reliable broadband connection is absolutely vital for all companies, yet 20% of Norfolk companies suffer from unreliable connections. The BCC survey shows that firms in rural areas are at least twice as likely to have unreliable connections as those in towns. The focus of any future government must be on providing businesses with sufficient and reliable broadband connections to enable to them to do business confidently.  Having a business in a rural location shouldn’t mean you sacrifice market opportunities, businesses operating in Norfolk as well as businesses looking to invest and trade with Norfolk businesses need broadband confidence to do business”

The survey also showed that with more reliable connections Norfolk businesses could do more. Over half of businesses (54%) said that if the reliability of their broadband connection was improved it would allow them to use more applications, particularly cloud-based services (24%), transfer of large files (16%), and remote server access for employees (14%).

Commenting on the need for further broadband improvements, Nova Fairbank, Public Affairs Manager for Norfolk Chamber said: 

“Unreliable connections stunt productivity, causing needless delays, costs and frustration. While businesses across the county are affected, it is the rural areas and small businesses that are most likely to suffer. An unreliable connection acts as a barrier to growth, and puts those companies most in need of support at a competitive disadvantage.

“These are a few of the reasons why Norfolk Chamber is calling for any future government to commit to more investment in broadband infrastructure across our county to ensure that local businesses, whether they are based in the city, market towns or in rural locations, can be compete on a level playing field with the rest of the UK and beyond.”

There are a variety of opportunities for members to speak at Norfolk Chamber of Commerce events and we are always interested to hear from experienced speakers with an interesting story.

From speaking at business breakfasts, delivering a one hour bitesize free training session in our office, to speaking at a large scale conference on a specialised conference – there are great opportunitites available.

Attendees at our events expect our speakers to share information and best practice without heavily promoting their business.

In order to maintain the high quality expected of speakers at Chamber of Commerce events, we have introduced a speaker application form. Please complete the form by clicking here if you would like to be considered. 

Afghan industry leaders, small business owners and public sector representatives met earlier this month to explore provincial trade challenges and solutions that can feed into the ongoing design of the country’s National Export Strategy (NES).

The Strategy is intended to set out a blueprint for competitiveness and development of the country’s export sector and strengthen links between export development and socio-economic growth.

It will provide national and international development partners with an appropriate implementation plan for trade-related operations.

Jointly organised by Afghanistan’s Ministry of Commerce and Industries (MOCI) and the Afghanistan Chamber of Commerce and Industries (ACCI), the event follows the first NES stakeholders’ consultation held in Kabul in February 2017.

Deputy Minister for Commerce Mohammad Qurban Haqjo said: “The strong public and private sector dialogue that has taken place today on topics, such as quality management, skills development and market intelligence, will be invaluable in developing a sustainable and inclusive NES.”

The NES initiative falls under the auspices of the EU-funded “Advancing Afghanistan Trade” project, which aims to assist the country in improving the conditions to use trade as a lever for enhanced regional co-operation, economic and human development and poverty reduction.

Afghanistan acceded to the World Trade Organization (WTO) in July 2016 and has placed trade and regional economic co-operation at the heart of its development strategy.

Further information about the Advancing Afghan Trade project can be found here.

The EU is removing import duties on a wide range of products imported from Sri Lanka. Effective since 19 May, the initiative will see the full removal of duties on 66% of tariff lines, including textiles and fisheries products.

Made in response to reforms made by the Sri Lankan administration, the EU’s action is tied to what it characterises as rigorous monitoring of Sri Lanka’s commitment to sustainable development, human rights and good governance.

Sri Lanka has committed itself to effectively implementing 27 international conventions on issues including labour conditions and environmental protection, the European Commission noted.

The removal of import duties has been agreed as part of the EU’s Generalised Scheme of Preferences (GSP+), which supports developing countries by fostering their economic development through increased trade with Europe.

An application for GSP+ was made by the Sri Lankan Government in July 2016. The country had previously benefitted from the scheme, but preferential treatment to Sri Lankan imports was stopped by the EU in 2010 over concerns about human rights violations.

The EU is Sri Lanka’s biggest export market. In 2016, total bilateral trade amounted to almost €4 billion, with EU imports from Sri Lanka totalling €2.6 billion (primarily textiles, rubber products and machinery).

EU Trade Commissioner Cecilia Malmström said that granting GSP+ status to Sri Lanka is intended to provide an opportunity for further economic development, including creating more and better jobs for all Sri Lankans.

Sri Lanka joins eight other GSP+ beneficiaries: Armenia, Bolivia, Cape Verde, the Kyrgyz Republic, Mongolia, Pakistan, Paraguay and the Philippines.

On Thursday 25th May over 100 Norfolk Chamber members joined us at Caistor Hall for a morning of networking with a delicious breakfast and a presentation from Charlie Gauvain, Managing Director at Eye Film.

Jonathan Cage, President of Norfolk Chamber, hosted the morning. Members started off the morning with an ice breaker game of ‘Business Bingo’. This involved the guests deciding among them who fulfilled 9 statements on a bingo sheet, from personal to business facts. The members where then invited to take part in Safari Move, in order to meet and talk with new members. A delicious breakfast was then served and members got a chance to speak to the people they were sat with.

To introduce more networking before we had Charlie’s presentation, we had a ‘Guess the Advert’ quiz, where guests worked in teams to guess which brand was behind some notorious adverts in order to highlight the influence of stand-out video advertising.  

Charlie Gauvain then took to the floor to emphasise the importance of an effective video strategy for your business. He suggested that it isn’t always necessary to hire a professional to create video marketing and gave some hints and tips for the business members present about how they could create their own material. He also explained when the best time to call in a professional might be. A few of the guests engaged in a practical demonstration of how best to film video testimonials, and the common pitfalls to avoid.

Following Charlie’s presentation, Jonathan started a Q&A between the delegates and Charlie to help them get a better understanding of how they can use these tips within their own businesses. After this had finished many delegates stayed and networked with their existing contacts and also the new ones they had made that day.

See photos from the event: click here

The next Norwich breakfast is Thursday 6th July, to book your place: click here

Norwich City Council have released their latest economic barometer. The report highlighted:

Locally

• 37% of companies in the East of England are dis-satisfied with the state of the region’s infrastructure, according to a CBI report.
• Proxama has scrapped plans to sell its digital payments division – it will invest in a million-pound restructure instead
• Norwich BID has laid out its new 5-year plan.  Its goals include 3 key areas, promotion; visitor experience and business concerns
• The University of East Anglia has risen two places to 12th place in the Complete University Guide league table

Nationally

• UK inflation rate (CPI) rose last month to 2.7% –  its highest since September 2013
• UK construction companies reported a solid start to the second quarter, helped by rising civil engineering and residential building activity
• Warmer weather helped retail sales to rise by more than expected last month

For full details of the latest economic barometer click here.

What will your business look like in five years’ time and what support do you need to get there?

Come and share your views and help form the new economic strategy for Norfolk.  Together with New Anglia LEP and the local authorities, Norfolk Chamber is working on the new Economic Strategy for Norfolk and Suffolk. 

At our roundtable events, we need to hear from local businesses of all different sizes about what is important to them.  The strategy will look at how we can build on our strengths and make the most of the opportunities in our region.

We need your input, so join us at this free event to share your ideas. You’ll also be able to hear about some of the evidence which has been gathered so far, as well as well as taking part in lively discussions on a range of topics, from global trade to skills and productivity. 

Roundtable Events will be held on the below dates – to book your free place click on the relevant link:

·         Great Yarmouth – Monday 12 June 2017  4pm – 6pm    BOOK NOW

·         King’s Lynn – Monday 19 June 2017  4pm – 6pm  BOOK NOW

·         Norwich – Tuesday 11 July 2017  3pm – 5pm  BOOK NOW

The Roundtable events are free to attend. 

The Royal Norfolk Show is the county’s biggest event of the year. It attracts tens of thousands of visitors from all over the UK.  And we’re offering two VIP tickets to the Royal Norfolk Show on Wednesday 28 June 2017 as part of a competition.

VIP Tickets include general admission, car parking pass and invitation as guests of Norfolk Chamber to enjoy a spot of Afternoon Tea in the Sponsors & Corporate Hospitality Marquee overlooking the Grand Ring.

Afternoon Tea is available from 3pm – 5pm, relax with a selection of sandwiches, savouries, homemade cakes & sweet treats.

How to enter All you have to do is head over to the official Norfolk Chamber Twitter and retweet the competition tweet.

The competition closes on Friday 2 June at 10am and a winner will be selected at random.

Member Discount Norfolk Chamber members also have an exclusive 10% discount off the price of general admission tickets, click here for more details.

In the first quarter of 2017, the national picture showed solid growth, however the local view was not as optimistic.  The impact of economic uncertainty was starting show and the rise in inflation seen since last year’s EU referendum was identified as an increasing pressure facing Norfolk businesses.

Both the manufacturing and service sector reported falling domestic and export sales and reduced employment.  But how have Norfolk businesses fared in the second quarter? 

Has your company increased its sales and orders, either at home or overseas?  Are you looking to recruit more staff, or invest in plant and machinery? 

It is more important than ever that as many Norfolk businesses as possible complete the survey, so have your say now.  Today (Monday 22 May 2017) is the first day of the fieldwork period for the Q2 Quarterly Economic Survey (QES). 

The QES is the largest independent business survey in the UK and is used by both the Bank of England and the Chancellor of the Exchequer to plan the future of the UK economy.  It is also closely watched by the International Monetary Fund.

You can have your say by completing the QES online NOW, which takes less than 3 minutes.  The completion deadline for this survey is midnight on Monday 12 June 2017.

Some key Norfolk findings in the Q1 2017 survey:

• Both sectors reported falling domestic sales (Manufacturing 24% to 9% and Service 24% to 14%)
• Export sales fell in both sectors (Manufacturing 18% to 17% and Services 11% to 6%)
• Reduced employment in the last 3 months was reported by both sectors (Manufacturing 34% to 5% and Service 19% to 12%)
• The number of Norfolk manufacturers intending to increase prices remained static
• In the services sector, the balance of firms expecting prices to rise increased from +32% to +39%
• Both sectors highlighted an increase recruitment difficulties and reduced recruitment intentions

British exports through Heathrow are growing with the volume of cargo flying from the airport rising by 12% in April and with a 27% increase in Latin America and 19% in South Asia.

While traffic to these destinations is growing at least twice as fast as volumes to Europe (+11%), North America remains Britain’s most important export market from Heathrow, recording 14% growth in cargo in April.

Heathrow CEO John Holland-Kaye reported that China’s economic powerhouse of Qingdao in Shandong is set to be connected to the UK airport later this summer after Beijing Capital Airlines confirmed it would begin services.

The route will provide nearly 4000t of new cargo space for British exports to a fast-growing market in China, he said.

“Britain’s exports outside the EU are thriving and with Heathrow expansion opening up to 40 new long-haul trading links, the scale of the opportunity across the globe is tremendous,” Mr Holland-Kaye went on.

He confirmed that Heathrow was working around the clock to deliver the new runway and “secure the country’s future as a global trading powerhouse”.

Mr Holland-Kaye said that communities across Britain are putting forward their ideas to host one of Heathrow’s four new logistics hubs.

These hubs will, he said, play a vital role in making Heathrow’s expansion programme more affordable and environmentally sustainable, as well as creating jobs across the country as the airport looks to increase off-site construction.

The British Chambers of Commerce (BCC), in partnership with DHL, today (Friday) publishes its latest Quarterly International Trade Outlook, which shows that confidence among UK exporters, including those in Norfolk remains strong.

The number of Norfolk businesses reporting improved export sales increased in the first quarter of 2017. Businesses in both manufacturing and services are also more confident that their turnover and profitability would increase in the coming 12 months.

The BCC/DHL Trade Confidence Index, which measures the volume of trade documentation issued by accredited Chambers of Commerce, rose by 5.5% on the quarter – and is up 9.06% from the same quarter last year – standing at its second highest level on record.

The results show that businesses are continuing to trade despite political uncertainty, however currency fluctuations remain a concern. 52% of manufacturers and 25% of services firms say exchange rates are more of a concern to their business than three months ago.

To maintain momentum, and to help UK firms succeed beyond Brexit, the government should develop an expanded trade mission and fairs programme, help businesses build links with key trade partners and underpin deals, and expand funding for front-line assistance to exporters. Businesses will be looking for the next government to secure frictionless future trade arrangements with the EU, crucial to both importers and exporters, as well as to broker new relationships with emerging markets. 

Key findings from the report:

·         The BCC/DHL Trade Confidence Index, a measure of the volume of trade documentation issued nationally, rose by 5.5% on the quarter. The Index now stands at 126.55 -up 9.06% on Q1 2016 – and is the second highest level since records began in 2004

·         The balance of manufacturers reporting improved export sales rose from +16% to +26%. Looking at services, the balance of firms reporting improved export sales rose from +8% to +10%

·         The balance of manufacturers reporting improved export orders rose from +13 to +22 in Q4 2016, while in services it fell slightly from +6% to +5%

·         Looking at expectations of turnover over the next 12 months, the balance of manufacturers confident of an increase held fairly steady, rising from +43% to +44%. In services this rose by four points from +35% to +39%

·         Confidence that profitability would improve rose to +28% for services companies – up from the +21% in Q4 2016. The balance of manufacturers jumped by ten points, from +22% to +32%

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

“Norfolk Chamber of Commerce has seen an improvement in export confidence as there has been a marked increase in documentation processed during the 1st quarter of 2017 (+16/5%), in line with the national trend.

“While confidence among Norfolk’s exporters is high, rising costs, recruitment difficulties, and concerns around currency fluctuations could temper their growth if allowed to continue unchecked. Alleviating the burden of upfront costs and addressing the skills gap would increase productivity, investment and growth.”

Also commenting on the results, Dr Adam Marshall, BCC Director General, said:

“Confidence among exporters is strong, which is a timely reminder that businesses are doing their best to ignore the cacophony of political noise around them and focus on the success of their own operations.

“For UK exporters to succeed in the long-term, the next government must deliver not only a Brexit deal which allows for frictionless trade with Europe, but also pragmatic and practical support for businesses looking to develop lasting links with new customers and markets around the world.”

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

“Despite the many unanswered questions about what a post-Brexit Britain will look like, this latest Quarterly International Trade Outlook demonstrates that UK exporters remain optimistic about what the future holds.

“As a facilitator of international trade, we’ve seen our customers embrace the short term benefits that came with the fall in the value of the pound. However, this report demonstrates that whilst businesses are confident, they are not complacent – with currency fluctuations a lingering concern for exporters. In these uncertain times, there is an even greater imperative to expand the portfolio of markets businesses trade with to help spread the risk across multiple currencies.”