Chamber News

Norwich Airport hosted the recent Norwich Chamber Council meeting and took the opportunity to outline some of their plans for the future.

Richard Pace, Managing Director for Norwich Airport noted some of the key areas of success from the past year: the airport had catered for 524,000 passengers; 40,000 aircraft movements; had 25 direct flight destinations; and provided approximately 1,000 people with employment on site – 260 being directly employed by Norwich Airport.

Mr Pace gave an overview of their 30 year Masterplan, which is currently being drafted.  This will include: upgrades to airport infrastructure; increases in passenger growth; and more holiday destinations; as well as their aspirations to take advantage of the completion of the NDR.  There will be an opportunity to review the Norwich Airport Masterplan when it goes out for consultation later in the year.

The Norwich Chamber Council meeting was chaired by the newly appointed Chair, Paul McCarthy, General Manager of Intu Chapelfield.  

Commenting on today’s interest rate decision by the Bank of England’s Monetary Policy Committee, Suren Thiru, Head of Economics at the British Chambers of Commerce (BCC), said:

“While the Bank of England’s decision to keep interest rates on hold was widely expected, there was a surprising shift in the committee’s voting pattern, with one member voting for a rate rise.  This partly reflects the fact that the Monetary Policy Committee are facing a more challenging period, with inflation likely to move materially above the 2% target in the coming months. Furthermore, if US monetary policy continues to tighten as expected, it may weigh on UK rate decisions by increasing the downward pressure on Sterling, pushing UK price growth higher.

“However, with UK economic conditions likely to become more subdued over the near term, and little evidence that higher inflation is becoming entrenched in stronger pay growth, the MPC has sufficient leeway to tolerate a prolonged period of above target inflation. Therefore, while the next move in interest rates is likely to be upwards, we don’t expect this to happen until the end of 2018.

“With the MPC close to exhausting the monetary policy tools available to them, the government must do more to support business confidence and incentivise investment, particularly by tackling the rising input costs faced by businesses.”

As the second largest economy in Latin America, but a higher GDP per capita than any of the BRIC countries, Mexico offers an abundance of possibilities, in many different sectors. The main language is Spanish, but English is widely used and understood. Mexico consists of a huge mix of cultures, with influences from Europe, the United States, combined with the old, rich cultural history dating back to the Aztecs and Mayans. While Mexico has a beautiful culture, nature and traditions, it also boasts powerful, global cities with different sector hubs. Currently, Mexico is the world’s 15th largest economy, though it is predicted that in a few years, it will be in the top 10.

Trade with Mexico

Mexico is the country with the most free trade agreements (FTA) in the world. Besides the FTA Mexico has with the European Union, they have 12 FTA’s with over 40 countries. In the uncertainty following the results of both the Brexit vote and the U.S. election, the Mexican and British governments have both been keen to stress that establishing a new Free Trade Agreement between the two nations is a top priority.

Opportunities in Mexico

With a population of over 120 million and a growing middle class, there is a huge market for British goods, about the same size as the whole of Western Europe.

Though mostly every sector offers great opportunities, these are the ones which are currently the most prosperous:

Oil and Gas

Mexico is a major oil exporter, though a great deal of their potential has not been realised due to the 75-year monopoly the state has had on oil and gas. The current energy reforms, where not only the market for oil and gas – but also for electricity – have been opened up to new players, already increasing oil production. As more private companies win bids for exploration and production, opportunities open up for suppliers into the sector.

Renewable Energy

Besides oil and gas, there has been an increasing interest in renewable energy in Mexico.

• The potential for wind energy is estimated at around 40 GW.
• The potential for hydroelectrical energy is estimated at 53,000 MW.
• Because of its ideal geographical location in the so-called ‘Sunbelt’, Mexico is seen as one of the most attractive countries for the development of photovoltaic projects, with a potential to generate 6,500,000 GW per year.
• Mexico has committed to source 35% of power from clean sources by 2024

Manufacturing

The 1994 establishment of NAFTA opened Mexico up to an influx of American culture and goods as well as propelling Mexico’s manufacturing sector. Currently, more than a quarter of Mexico’s trade with the UK consists of manufactured goods. Unlike other countries in Latin America, Mexico’s manufacturing sector has had solid growth over the past years. This is not only due to NAFTA, but also because of low average labour costs, a skilled and youthful workforce and various fiscal incentives. The main subsectors within manufacturing are the automotive industry (Mexico is the leading exporter in Latin America, and 8th in the world), the aerospace industry and white goods.

Other opportunities

However, there are many more interesting, steadily growing sectors in Mexico:

• They are the leading exporter of electronics in Latin America, with an average growth rate of nearly 7%.
• The food sector contributes heavily to current trade with the UK, and Mexico has a strong position worldwide in multiple food subsectors, including coffee, cacao powder, avocadoes and meat.
• The Mexican government has an ambitious national infrastructure plan with opportunities for private companies in large construction projects.
• Also metalworking, mining, tourism, Information Technologies, education and the pharmaceutical industry are sectors with a plethora of opportunities.

For more information about Mexico and more specifically the relationship between UK and Mexico, please visit our website: www.britishbusiness.mx. Also, if you require more information or advice about entering the Mexican market, please do not hesitate to contact [email protected] or the Norfolk Chamber International Team.

Key Dates:

British Chamber Education Day in Mexico: 26th May 2017

Mexican Petroleum Congress: 7th – 10th June 2017

British Chamber Energy Day: 3rd October 2017

The A47 trunk roads form part of the strategic road network and provides for a variety of local, medium and long distance trips between the A1 and the east coast.  The corridor connects the cities of Norwich and Peterborough, the towns of Wisbech, Kings Lynn, Dereham, Great Yarmouth and Lowestoft and a succession of villages in what is largely a rural area.

In 2014 the government published the Road Investment Strategy. This includes a package of 6 schemes to improve journeys on the 115 mile section of the A47 between Peterborough and Great Yarmouth. Together, the proposals will relieve congestion and improve the reliability of journey times for drivers.  The proposals include converting almost 8 miles of single carriageway to dual carriageway and making improvements to junctions across the route. The Norfolk based schemes are:

• A47/A11 Thickthorn junction improvement
•  A47 Great Yarmouth junction improvements
• A47 Blofield to North Burlingham dualling
• A47 North Tuddenham to Easton dualling

Highways England have now started to consult on the route options for each of these improvements.  The consultations provide an opportunity for businesses and the general public to view, discuss and help shape their proposals.  This will help Highways England to understand what is important to businesses and local communities and will help inform the selection of a preferred option.

A47/A11 Thickthorn junction improvement

Highways England have a proposal to improve the A47/A11 Thickthorn junction.  It will create a better junction that will relieve congestion and improve safety.  The full consultation brochure can be found here.

There will be public exhibitions at the following locations/dates/times:

Willow Centre, Cringleford –  Saturday 25 March 2017 from 10am – 2pm

Jubilee Youth Club, Hethersett – Monday 27 March 2017 from 3pm – 8pm

Willow Centre, Cringleford – Tuesday 28 March 2017 from 3pm – 8pm

Norwich City Library (pick up point) – Monday 13 March – Friday 21 April 2017

Have your say now – complete the online A47/A11 Thickthorn Junction consultation now

A47 Great Yarmouth junction improvements

Vauxhall Roundabout including the Station Approach Junction and Gapton Roundabout are located towards the northern end of Great Yarmouth and have been identified as priority junctions in need of fundamental improvement.  The full consultation brochure can be found here.

There will be public exhibitions at the following locations/dates/times:

King’s Centre, Great Yarmouth – Saturday 18 March 2017 from 10am – 2pm

Great Yarmouth Town Hall – Monday 20 March 2017 from 10am – 5pm

King’s Centre, Great Yarmouth – Wednesday 22 March 2017 from 3pm – 8pm

Gt Yarmouth Town Hall (pick up point) – Monday 13 March – Friday 21 April 2017

Have your say now – complete the online Great Yarmouth Junctions consultation now

A47 Blofield to North Burlingham dualling

The Highways England proposals will create a new dual carriageway that will relieve congestion, provide extra road space, improve safety and help provide a free-flowing network.  The full consultation brochure can be found here.

There will be public exhibitions at the following locations/dates/times:

Lingwood Village Hall – Wednesday 29 March 2017 from 3pm – 8pm

Blofield Court House – Friday 31 March 2017 from 10am – 5pm

Lingwood Village Hall – Saturday 01 April 2017 from 10am – 2pm

Have your say now – complete the online Blofield to North Burlingham dualling consultation now

A47 North Tuddenham to Easton dualling

Highways England are consulting on proposals to improve the A47 between North Tuddenham and Easton. Their proposals will create a new dual carriageway that will relieve congestion, provide extra road space, improve safety and help provide a free-flowing network.

They have been working closely with Norfolk County Council to ensure that their proposals align with local and regional plans and aspirations for growth.  There will be a further statutory public consultation before any scheme is finalised.  The full consultation brochure can be found here.

There will be public exhibitions at the following locations/dates/times:

Honingham Village Hall – Thursday 06 April 2017 from 3pm – 8pm

Hockering Village Hall – Friday 07 April 2017 from 10am – 5pm

Easton Village Hall – Saturday 08 April 2017 from 10am – 2pm

Dereham Library (pick up point) – Monday 13 March – Friday 21 April 2017

Have your say now – complete the online North Tuddenham to Easton dualling consultation now

The British Chambers of Commerce (BCC) has today (Tuesday) upgraded its UK GDP growth forecast for 2017 from 1.1% to 1.4%. However, it has downgraded its expectations slightly for 2018 from 1.4% to 1.3%, and published its first forecast for 2019 of 1.5% growth.

The leading business group upgraded its growth forecast for 2017, driven by an upward revision to UK GDP growth data in the final quarter of 2016, and stronger than expected levels of consumer spending. There has also been a slight improvement in the outlook for investment and trade, compared to our previous forecast.

However, economic growth is expected to remain well below its long-term average over the forecast period.

Inflation is forecast to breach the Bank of England’s 2% target this quarter, with companies facing higher input costs, which will be passed through to consumers. While average earnings are expected to hold steady, the inflationary pressures are likely to erode real wages. As a result, consumer spending, a driving force of growth in the economy in recent years, is expected to slow substantially. 

The UK’s net trade position is expected to improve over the next few years. Investment is forecast to contract this year, with subdued growth predicted in the following years, as uncertainties relating to the outcomes of the UK’s negotiations with the EU persist, and increasing input costs and taxes hit businesses.

In this period of uncertainty, there are heightened risks to the forecast. Faster levels of inflation and increased anxiety around the Brexit negotiations could result in more muted growth, however if resilience in consumer spending continues, growth levels could be bolstered. 

Caroline Williams, Chief Executive of Norfolk Chamber of Commerce said:

“Thanks to the hard work of UK businesses including Norfolk and the continued resilience of British consumers, the U.K. economy is likely to grow somewhat more strongly than had been previously expected during 2017.

“However, several years of unspectacular growth is expected, which, when coupled with inflationary pressures and the uncertainty of Brexit, means that it is important to tackle constraints, such as our infrastructure, which limits Norfolk business confidence and growth.

“Last week’s Budget was a missed opportunity for the government to provide much needed support on both infrastructure improvements and international trade; and to lower the heavy up-front taxes and costs that undermine business investment.  More thoughtful and radical moves to improve the business environment would give businesses – and GDP forecasts – a boost during a critical and complex time.”

Key points in the forecast:

• UK GDP growth forecast for 2017 is upgraded to 1.4%, but is expected to slow to 1.3% in 2018, before accelerating slightly to 1.5% in 2019. Growth of 0.4% is expected in Q1 2017
• The improved growth forecast for 2017 is driven primarily by stronger than expected household consumption and ONS revisions to Q4 GDP data. GDP growth forecast for 2018 has been downgraded slightly from 1.4% to 1.3%, with consumer spending expected to weaken
• The pace of inflation has picked up faster than expected and is forecast to breach the Bank of England’s 2% target early this year, growing by 2.4% in 2017, 2.7% in 2018 before slowing to 2.5% in 2019. This is higher than the previous forecast of 2.1% and 2.4% for 2017 and 2018 respectively
• Consumer spending is expected to slow substantially from 1.6% in 2017, to 0.9% in 2018 and 1.1% in 2019 as inflationary pressures erode real wages
• Business investment is expected to contract by 0.5% in 2017, before growth levels of 0.2% in 2018 and 1.0% in 2019
• Export growth has been upgraded from 2.3% to 2.7% in 2017, and from 2.9% to 3.1% in 2018, and is expected to be 2.8% in 2019.
• Looking at sectors, construction has been upgraded from -2.0% for 2017 to 0.4% and is expected to grow by 0.2% in 2018 and 1.0% in 2019. The services sector is expected to grow by 1.9% in 2017, 1.5% in 2018 and 1.7% in 2019. Manufacturing is to grow by 1.2%, 0.7% and 1.0% respectively.
• The main downside risk to our forecast is if inflation rises by more than we currently predict which would be a further squeeze on consumer spending and business investment. The upside risk is if consumer spending current resilience continues. Under this scenario, our expectations for GDP growth would be substantially higher.

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

“We have upgraded our growth forecast for 2017, driven by revisions to official GDP data and a stronger than expected end to 2016 for the UK economy.

“That said, the UK economy is still set to enter a more subdued period, with growth expected to remain materially below trend over the near term. The resilience in consumer spending, a key driver of UK growth, will slowly dissipate over the coming months as higher inflation and muted wage growth combine to erode consumer spending power.

“The UK’s trade position will improve across the forecast period supported by the depreciation of Sterling and an improving outlook for the global economy.

“The imbalances in the economy continue to leave the UK increasingly exposed to economic shocks. While household consumption’s contribution to UK GDP growth is likely to decrease over the near term, the slight improvement in investment and trade prospects over the same period is not expected to be enough to prevent a slowdown in overall growth.”

A lot has happened since the UK voted to leave the European Union.  The Prime Minister, Theresa May states “Brexit means Brexit” and she is sticking to her timetable of triggering Article 50 of the Lisbon Treaty, which gives the UK and the EU two years to agree the terms of the split. by the end of March 2017.   Parliament has now had their Brexit legislation defeated twice in the House of Lords.  The second defeat resulting in the sacking of the Lord Heseltine, who was one of 13 Tories who rebelled against the Government.

At the time of the EU Referendum, there were predictions of an immediate economic crisis, if the UK voted to leave. House prices would fall, there would be a recession with a big rise in unemployment – and an emergency Budget would be needed to bring in the large cuts in spending that would be needed.

The reality was that the Pound did slump the day after the referendum – and remains around 15% lower against the dollar and 10% down against the euro – but the predictions of immediate doom have not proved accurate with the UK economy estimated to have grown 1.8% in 2016, second only to Germany’s 1.9% among the world’s G7 leading industrialised nations.

Most successful businesses recognise the need to stay positive and be able to take advantage of a difficult situation.  They understand that there are opportunities in times of uncertainty, as well as risks.

For the next edition of the Norfolk Voice magazine, we want to hear from Chamber members about the impact of Brexit on them.  What have you been doing, as a result of Brexit and what plans  have you got to take advantage of future opportunities?

Has your company taken advantage of the lower Pound and increased your exports; are you looking at new markets; or trying to source new suppliers – perhaps from within the UK?  What future opportunities do you see as a result of Brexit?

Also, what does your business need to see from the Brexit negotiations?  Just a few of the business comments we have heard so far include: the overall need for clarity; a bureaucratic-free system for EU workers; simplified regulations post Brexit and a reduction in red tape; and to keep tariffs with the EU to a minimum.

Please send your comments to Nova Fairbank.  Email: [email protected] by no later than close of play on Friday 24 March 2017.

Cyber security is something that everyone within the Norfolk business community should be thinking about. 

The National Cyber Security Strategy 2016 – 2021 stated that in the last year, the average cost of security breaches to large businesses was £36,500.  For small firms the average cost of breaches was £3,100.   With 65% of large organisations reporting that they had suffered an information security breach in the past year, and 25% of these experiencing a breach at least once a month.

On Thursday 18 May Norfolk Chamber are set to deliver a new Cyber Security Conference. The agenda will look to bring speakers from a range of businesses and backgrounds, including live demonstrations, to inform you of how to keep your business safe.

For more information and to book your place click here.

(Based on February 2017 data releases)

Monthly headlines:

• UK GDP growth for Q4 upgraded to 0.7%, but growth for 2016 revised down to 4-year low
• UK retail sales weakens further as inflation continues to rise and earnings growth slows
• German GDP growth picks-up in Q4 as Greece’s economy shrinks

The second official estimate for Q4 2016 UK economic growth (GDP) stood at 0.7%, which was up from the previous estimate of 0.6% and is the fastest rate of growth since Q4 2015.  Overall the latest GDP estimate confirmation that the UK economy enjoyed a solid end to 2016.   Although the UK economy enjoyed a strong end to 2016, higher inflation is an increasing challenge for businesses as well as consumers.

Retail sales continued to declined and fell by 0.4% in January.  Rising prices in fuel and food are significant factors in the slow down with average store prices rising by 1.9% on the year.

The Eurozone GDP growth remains mixed.  The biggest economy is German, which grew by 0.7% in Q4, whilst the economies of Finland and Greece contracted.  Whilst the Eurozone is likely to grow at a reasonable rate there are concerns over the southern European economies and broad political uncertainty could also weigh on their growth prospects.

For full details of this month’s economic review click here.

Rescheduled Bridge Beam Delivery Dates:

The delivery of the 36.7m steel beams for the bridge that will carry the NDR dual carriageway over the Norwich to Sheringham railway has been rescheduled for next week after the police were unable to provide an escort this week.

The five abnormal loads will instead be moved on Tuesday 14 March, Wednesday 15th and Thursday 16th. The route from Middlesborough will be along the A1, the A47 and the B1140 through Panxworth, reaching the bridge site from Plumstead Road, which will be closed for around 15 minutes for each arrival (between noon and 4pm).

The beams – five braced pairs – will arrive in halves and after assembly on site will be lifted into place on Sunday 9 April and/or Sunday 16 April, when the railway will be closed, with Bittern Line trains replaced by buses.

Temporary Traffic Lights:

The location of temporary traffic lights from Week Commencing 13 March will be as follows:

Reepham Road

• Two-way off-peak lights Monday only (13 March) by Bell Farm (tree trimming for BT diversion)
• Three-way lights at Reepham Rd/Holly Lane on Monday (after morning peak) and Tuesday as part of the Hall Lane traffic calming works,
• Two-way lights on Reepham Road at Drayton Lane junction site Wednesday to Friday

Holt Road (B1149)

• Two-way lights at Drayton Lane roundabout site Monday to Wednesday and Friday.
• Three-way lights at Holt Road/Holly Lane on Thursday to form access into the compound off Holt Road next to junction ready for bridge beam deliveries.

Cromer Road (A140)

• The 24 hour two-way lights currently in use will continue throughout next week and are likely to remain until Monday 20 March.

The A47 Alliance is to push for further investment from central government to make much-needed improvements to the A47, including dualling much of the route.

Highways England, the government company charged with operating, maintaining and improving England’s motorways and major A roads, is shortly set to reveal a set of proposals to make improvements to the A47 in Peterborough, Cambridgeshire and Norfolk. Central government has already committed to funding these improvements, which largely consist of making improvements to junctions along the route, with construction set to begin in 2020.

The A47 Alliance, which includes Norfolk Chamber, local authorities, MPs and others, will now focus its efforts on getting a commitment from central government for further improvements. The priority improvements agreed by the A47 Alliance are:

• Dualling Acle Straight to Great Yarmouth
• Dualling Tilney to East Winch (including Hardwick flyover dualling) in King’s Lynn
• Dualling Guyhirn to Wisbech,
• Junction improvements at:
  • A1101 Elm High Roundabout and B198 East and West in Wisbech
  • Eye Roundabout
  • Junction 15 and Junction 18 in Peterborough

If funding for these improvements is secured, work could get under way between 2020 and 2025.

Nova Fairbank, Public Affairs Manager for Norfolk chamber said:

“Norfolk Chamber will be supporting the A47 Alliance in its plans to step up the campaign for A47 improvements.  We need to show Westminster that we have the support of the Norfolk business community, the local authorities, the general public and all our local MPs by presenting a business care which highlights that the much needed A47 improvements will help deliver greater economic growth and jobs.”

The A47 Alliance will be canvasing public and stakeholder support through the website and newsletter and organising a business breakfast. It will seek to meet the Transport Minister with a portfolio of evidence to try to secure future funding.

Cllr Wilby, Chairman of the A47 Alliance and Chairman of Norfolk County Council’s Economy Development and Transport Committee, said:

“These improvements are crucial to improve the A47. It is the major route across East Anglia and for too long businesses, residents and visitors have had to put up with an inadequate, unreliable route.

“The Alliance was successful in persuading government to invest over £300m for improvements that will start on the ground in 2020. These are a good first step towards the Alliance’s ambition of full dualling of the full A47, with bridges and flyovers being created at key junctions. We have now agreed our priorities for the period after 2020 and will step up our campaign to persuade government of the case for further investment.”

Graham Plant, Vice Chairman of the A47 Alliance and Leader of Great Yarmouth Borough Council said:

“The A47 is the major route that connects our region to the midlands and the north, so it’s vital that we maintain pressure on getting the road improved.

“We welcome the forthcoming Highways England consultation on the currently funded schemes along the A47. The A47 Alliance is pleased to see progress with these schemes starting to come forward after the funding announcement in 2014. We are also pleased to see that the A12 has now been renumbered as the A47 between Great Yarmouth and Lowestoft. This will make journey planning easier for motorists. We will continue to press for further major infrastructure in and around the town including Vauxhall Junction, Acle Straight dualling and the Great Yarmouth Third River Crossing.”

Businesses from across the UK are invited to compete in the fourteenth annual Chamber Business Awards – hosted by the British Chambers of Commerce (BCC).

The prestigious competition is one of the showpiece events in the business calendar, recognising and promoting the best of British business through a series of regional heats, culminating in a Gala Awards Dinner, which will take place at the Brewery, London on 30 November.

Entries open on Monday 13 March and will run until Friday 30 June. This year’s Awards are being launched at the London Stock Exchange, where last year’s winner of Business of the Year, Scientifica, have won the special honour of opening the Exchange as a prize. Next year’s winners will have the same chance to do so, a rare opportunity for a private business. 

Companies can enter nine categories, covering exports, small business, people development, technology, high-growth, customer service, partnerships with the education sector, social media, and health and wellbeing.

Francis Martin, President of the British Chambers of Commerce said:

“Businesses are the driving force of the UK economy, creating jobs, growth and prosperity, and helping Britain to maintain its reputation internationally. This is exactly why it is important for us to recognise and celebrate the contribution they make to their local communities and the wider economy.

“The broad spread of categories in the Chamber Business Awards reflects both the diversity of industries and skills of British firms, and the range of achievements and projects that they have been involved with.

“Each time I visit Chamber member businesses, it is inspiring to see so many companies finding innovative ways to grow their business in every corner of the UK. The Awards acknowledge the relentless efforts of these businesses and their talented employees.”

Adrian Corbin of Scientifica, Winner of the ‘Business of the Year’ award last year, said:

“Everyone at Scientifica is incredibly proud that the company won Business of the Year at the Chamber Business Awards 2016. It is an enormous achievement and a fitting testimony to all the hard work that has gone into creating such a great company.

“We are at the forefront of high-tech British manufacturing, exporting our products to more than forty countries worldwide. We employ a highly-educated and international workforce who are all committed to producing innovative products to help further neuroscience research, and the winning of this award will undoubtedly help us expand into even more markets around the world.”

To enter online, go to www.chamberawards.co.uk

Nova Fairbank, Public Affairs Manager for Norfolk Chamber of Commerce provided a business perpsective for the Mustard TV debate on the outcome of the Spring Budget.  The discussion panel included, James Wright, Liberal Democrat City Councillor, Emma Corlett, Labour County councillor and Andrew Wiltshire, Conservative, Norwich South