Chamber News

The British Chambers of Commerce (BCC), in partnership with DHL, today (Thursday) publishes its latest Quarterly International Trade Outlook, which shows that confidence among exporters that their turnover will improve jumped in Q4 2016, ahead of further moves towards Brexit.

Although the number of businesses reporting that their export sales and orders would improve remained largely constant in the last quarter of 2016, businesses in both manufacturing and services are increasingly confident that they will continue to improve turnover, and that profitability will increase or remain steady in the coming 12 months.

The BCC/DHL Trade Confidence Index, which measures the volume of trade documentation issued by accredited Chambers of Commerce, fell by 1.42% on the quarter – but remains nearly 5% up on the last quarter of 2015.

The results serve as a reminder that businesses are continuing to trade in spite of the uncertainty around Brexit. But to maintain this positivity, the government must focus on the fundamentals of the economy – helping exporters recruit to close a growing skills gap, and provide support for those seeking to navigate currency fluctuations.

Key findings from the report:

·         The BCC/DHL Trade Confidence Index, a measure of the volume of trade documentation issued nationally, fell by 1.42% on the quarter. The Index now stands at 119.96 – and is up 4.81% on Q4 2015

·         The balance of manufacturers reporting improved export sales fell slightly to +16, down one point from the previous quarter. Looking at services, the balance of firms reporting improved export sales remained constant at +8

·         The balance of manufacturers reporting improved export orders rose to +13 from +12 in Q3, while in services this rose one point to +6

·         Looking at expectations of turnover over the next 12 months, the balance of manufacturers confident of an increase rose nine points to +43 – in services this rose seven points to +35

·         Confidence that profitability would improve rose to +21 for services companies – up from the four-year low of +15 seen in Q3 2016. The balance of manufacturers remained constant at +22

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

“Many Norfolk exporters remain confident, in spite of uncertainty over our relationship with the EU. The BCC findings serve as a reminder that it is businesses that trade with other businesses, not governments – but they need support if they are to continue to be positive.”

Dr Adam Marshall, BCC Director General, said:

“Our economic forecast suggests that inflation is going to rise above the 2% target this year, which will create pressure on many firms. In addition, the fluctuating currency markets are affecting our exporters and importers – so there are warning signs on the horizon.

“The government cannot give businesses much certainty around either Brexit or currency markets, but it can act closer to home. The Chancellor’s Budget must focus on cutting the up-front costs that government imposes on every business, and promote investment and exports.”

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

“UK exporters continue to be undeterred in their ambition to take their products and services overseas, despite turbulent economic times.

“Whilst this confidence might come as a surprise during these uncertain times, the rapid evolution of e-commerce and technology means that more businesses than ever are realising the opportunity that exporting presents.

“With online technology in overseas markets advancing, UK exporters should remain confident that their products are now more accessible than ever.”

Following a sharp widening of the trade deficit in the third quarter (Q3) of 2016, an increase in exports of goods to non-EU countries saw the deficit on goods and services narrow to £8.6 billion in the fourth quarter (Q4) (October to December).

This is the main finding of the latest trade bulletin produced by the Office for National Statistics (ONS).

It shows that, while exports of goods to both EU and non-EU countries increased through most of 2016, there was a much higher quarter-on-quarter growth in exports to non-EU countries in Q4.

The British Chambers of Commerce (BCC) welcomed the signs of improvement with Director of Economics Mike Spicer describing the figures as an important reminder that UK companies take advantage of trading opportunities in every part of the world.

“This performance comes despite the mixed reaction of exporters to the depreciation in Sterling – which our research has found is hurting as many as it is helping,” he went on.

With Brexit continuing to dominate the headlines, Mr Spicer suggested that the continued weakness of the pound and the expected slowdown in economic growth is likely to dampen future demand for consumer imports.

More direct support from the Government, including more investment in trade show access, is needed “to keep UK businesses trading with the world”, he argued.

The BCC wants to see action in the Budget to reduce the upfront costs of doing business, particularly business rates in order that businesses have the resources to invest in people and product development.

“This is absolutely necessary to take full advantage of the growth opportunities in overseas markets,” Mr Spicer concluded.

Addressing a recent meeting of the Indian aviation community, UK Aviation Minister Lord Ahmad called for even greater trade links between the two countries.

He highlighted that Prime Ministers May and Modi had already committed to building the closest possible commercial and economic relationship, while Secretary of State for International Trade, Liam Fox, has agreed to set up a joint working group with the Indian Minister for Trade, Nirmala Sitharaman.

During Lord Ahmad’s visit to India, a deal was signed to ease restrictions on the number of scheduled flights between the two countries.

Limits on flights from key Indian cities including Chennai and Kolkata have been scrapped allowing, the Aviation Minister explained, for a greater range of flights for passengers while providing a boost to trade and tourism for both countries.

With about 2.5 million passengers flying direct between the UK and India each year, and 88 scheduled services per week in each direction between the two countries, the new agreement should open up even more routes and opportunities.

“Building new links with important trading partners is a key part of the Government’s plans for a Global Britain,” Lord Ahmad said, “opening up new export markets and creating jobs and economic growth. India is one of our closest allies and key trading partners and this new agreement will only serve to strengthen this crucial relationship.”

The European Commission has published details of its current trade negotiations with Indonesia.

Bilateral trade talks between the EU and the South East Asian country were launched in July 2016, with the aim of concluding a Comprehensive Economic Partnership Agreement (CEPA) between the two.

Issues covered include: customs duties and other barriers to trade; services and investment; access to public procurement markets; competition rules and the protection of intellectual property rights.

When the talks were launched, Trade Commissioner Cecilia Malmström said that an agreement would offer great opportunities for businesses and people in both the EU and Indonesia.

With a population of over 250 million people, Indonesia is the largest market in South East Asia. Figures for 2015 show that bilateral trade in goods between the prospective partners had already reached more than €25 billion that year.

The EU is Indonesia’s fourth largest trading partner, while Indonesia is the Union’s fifth largest partner in the Association of Southeast Asian Nations (ASEAN).

Details of the negotiations just released by the Commission show that the talks have addressed the opening of public procurement markets, the need to reduce unnecessary overlapping regulatory barriers to trade and how to increase trade benefits for small businesses.

They have also considered increased co-operation on the import requirements related to food safety, and to plant and animal health.

In addition to trade issues, the CEPA is also intended to uphold current levels of protection for consumers, workers and the environment, and to promote sustainable development.

Further information about trade between the EU and Indonesia can be found at the European Commission website.

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

Locally

• The East of England saw the fastest growth in business activity of any UK region in December and its pace of jobs growth was second only to the Yorkshire and Humber region
• Consumer spending rose by 5.5% in November – driven by spending on petrol and in supermarkets according to Barclaycard.  Travel expenditure rose by 6% and restaurants saw growth of 15.5%
• A Howes Percival survey showed that 55% of businesses leaders are not confident of a positive Brexit impact on their businesses.  Firms in the agriculture, automotive and professional service were more encouraged, whilst those in technology, manufacturing and media were less so
• Residential property prices are picking up say the RICS.  With 21% more surveyors reporting a rise in new buyer enquiries

Nationally

• UK Manufacturing sector ended 2016 on a positive note, with rates of growth for production and new orders reaching a 2 year high
• Retail sales in December dropped 1.9% from the previous month.  With sales across all main retail sectors declining.  However ONs figures showed that in comparison to the same time the previous year overall sales were up 4.3%
• The fall in Sterling since Brexit has started to feed into the economy.  Rising air fares, food and petrol prices all help to push up inflation
• Lenders reported an increasing number of borrowers facing difficulties in repaying loans and overdrafts at the end of the year
• Retail sales volumes rose by 0.9% – much stronger than expected

For full details of the latest economic barometer click here.

In the last quarter of 2016, the overall findings from the Q4 2016 suggested that growth in Norfolk would continue in 2017, albeit at a more modest pace.  However, the survey found that firms in both sectors, particularly in manufacturing, are facing pressure to raise prices, principally as a result of the cost of raw materials and other overheads. 

So, at the start of 2017, is the Norfolk economy continuing to grow?  Today (Monday 20 February 2017) is the first day of the fieldwork period for the Q1 Quarterly Economic Survey (QES).   It is more important than ever that as many Norfolk businesses as possible complete the survey.

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 13 March 2017.

Some key Norfolk findings in the Q4 2016 survey:

• Overall, the figures for both sectors indicate continued expansion, but at a lower level for the services sector than before the EU referendum
• There was a considerable rise in the balance of firms in both sectors expecting the prices of their goods and services to increase over the next three months. This pressure is predominately as a result of an increase in raw material prices following the post-referendum devaluation of Sterling
• In the manufacturing sector, the balance of firms reporting improved export sales remained broadly steady.
• Domestically, the balance for services firms rebounded slightly, after falling considerably in the last quarter. Domestic sales were up from +10% to +24% and orders rose from +0% to +20%.  
• Having dipped in the last quarter, the manufacturing sector are reporting higher balances of firms investing in plant and machinery, with an increasing balance from +13% in Q3 to +27% this quarter.
• More firms in both sectors are reporting confidence that their turnover will increase. The balance of manufacturers rose from +39% to +63%, while services increased from +28% to +35%. While confidence in profitability also rose from +13% to +52%, it rose from +6% to +20% in the services sector. 

Two million pounds is set to be spent over the next two years to make the route between Great Yarmouth’s train station and Market Place more attractive and safer to use by pedestrians and cyclists. Norfolk County Council is currently asking for people’s views on the proposals, which include making improvements to the station’s forecourt, a landscaped ‘garden walk’ between the bridge and North Quay and creating a wide, continuous cycle and pedestrian path from the station to the Market Place via The Conge.  Other elements being proposed include a new cycle and footpath linking Acle New Road with Vauxhall Bridge, changes to crossing points and junctions to make them safer for cyclists and pedestrians, and better lighting and signage.  The improvements part of a wider intention to transform the Great Yarmouth area over the coming years to make it easier for people to get to and around and make it a more attractive place to live, work and visit. This will help attract future investment and economic development to the area, creating skilled jobs, business opportunities and giving local people a better quality of life. People are being encouraged to view the detailed proposals and respond to the consultation online via www.norfolk.citizenspace.com before the consultation closes at midnight on Monday, 13 March. In addition, the County Council is holding four drop-in sessions in the town over the next fortnight to give people the opportunity to examine the plans in person and speak to members of the project team. These will be held at:

• The train station on Friday, 17 February from 8am to 6pm.
• Market Gates shopping centre on Wednesday, 22 February from 10am to 3pm.
• Asda on Acle New Rd on Wednesday, 1 March from 10am to 4pm.
• Market Gates shopping centre on Friday, 3 March from 10am to 3pm.

Once the public consultation has closed at midnight on Monday, 13 March the responses will be considered and more detailed planning work will be done, with construction work due to get underway in late autumn this year. Norfolk County Council has been awarded the £2 million by the New Anglia Local Enterprise Partnership to design and carry out the proposed improvement works, which are being considered as part of Great Yarmouth Borough Council’s draft Masterplan to strengthen the town centre.  

Neil Orford, President of Great Yarmouth Chamber Council said: “Great Yarmouth Chamber Council welcomes this much needed investment to our town.  Improvements to key transport links are vital for both the business community and the tourism sector.   First impressions count, and easy access from the train stations and the links to the town centre will make a significant difference.  In addition, improved transport systems will help support economic growth for the growing offshore and renewables sector, as well as the Enterprise Zone.”

Martin Wilby, Chairman of the Environment, Development and Transport Committee at Norfolk County Council, said: “I believe these improvements will make a big difference to Great Yarmouth, both in practical terms and in giving people confidence in the town’s future. 

“The train station is the first place many visitors to Yarmouth see. Creating a better first impression to those coming into the town by rail and improving access into the heart of the town will significantly improve people’s experience, from tourists and businesspeople to residents. When considered alongside all the other work that’s underway or in the pipeline, there is a real collective commitment to transforming the town and the momentum to get things done.” Chris Starkie, Managing Director of New Anglia LEP, said: “Improving the efficiency and effectiveness of transport in Great Yarmouth will benefit those who live in, work in and visit the town.  Better transport connectivity is important for businesses. Great Yarmouth, with its offshore heritage and growing energy sector, is at the centre of our all-energy coastline and it is crucial that the town’s transport system can support economic growth.”  Cllr Graham Plant, the leader of Great Yarmouth Borough Council, said: “The railway station is a busy gateway to the town and as such helps to form those all-important first impressions of the borough. “It is clear that the setting of the railway station area and its links to the town centre need improving. Creating a new sense of arrival at the railway station is one of the key projects of the draft Town Centre Masterplan, which aims to make the central area more attractive for residents, visitors and investors. “The borough council is pleased that the investment is available and looks forward to considering in more depth Norfolk County Council’s specific proposals and hearing the views of residents, businesses and visitors.”   As well as the proposed improvements to the route between the train station and Market Place, work is due to get underway this year to reduce congestion in the town. Central government has also pledged to improve junctions on the A47 and A12 by 2020, to make the roads safer to use and help prevent bottlenecks.

On Friday 10 February, Norfolk Chamber guests from across the region joined us at Dukes Head Hotel, Kings Lynn for an informative and relaxed networking morning with College of West Anglia.

Delegates arrived bright and early to get started on making new business connections. The event host, Heather Garrod, President of West Norfolk Chamber Council, welcomed guests and introduced our featured charity The Big C. This was followed by an ice breaker to get guests feeling relaxed and to encourage discussion, guest played ‘First or Worst jobs’ in which guest had to guess which first job belonged to which guest at the table. There were some amusing and surprising results!

Following on from this delegates tucked into a delicious breakfast provided by Dukes Head Hotel, continuing to network on their tables. Once finished we proceeded to mix our delegates up with our Safari Move, changing their tables around to enable them to make even more contacts in the room.

Mark Reavell, Executive Director for Partnerships at the College of West Anglia and the senior manager responsible for overseeing all Employer Engagement took the stage next, and gave guests an in-depth overview of what the challenge form the government is and how to achieve it. The question and answer session revealed more about what the College can offer going forwards, and when the best time for SME’s was to get started on hiring an apprentice.   

The event drew to a close with all delegates continuing their discussions and making those last minute contacts. Guests commented that they were confident with their apprenticeship needs going forward with the support of College of West Anglia and that the networking over the breakfast event was invaluable.

Even more homes and businesses in Norfolk will be able to access a high-speed broadband connection and all the benefits this brings, as an extension to Norfolk County Council’s and BT’s Better Broadband for Norfolk (BBfN) programme is now underway.

More than £11 million of new funding is being invested in the latest tranche of BBfN’s rollout of superfast broadband in the county, and as a result the availability of high-speed broadband is set to be extended to more than 95 per cent of Norfolk’s premises by spring 2020.

Five of Norfolk’s district councils – Breckland, Broadland, King’s Lynn and West Norfolk, North Norfolk and South Norfolk – have committed over £3m which has been match funded by central government, and this money will be spent to improve broadband coverage and speeds specifically in these five districts. The rest of the funding is made up of the gainshare ‘success dividend’ from BT from the first contract which has been made available following a higher than expected take-up of broadband services in some areas. In addition, around £10m of underspend from the first contract will be re-invested into this phase of the broadband roll-out.

This will bring the total investment in the BBfN programme to £68m since it launched at the end of 2012. Since then, hundreds of roadside broadband cabinets and thousands of miles of fibre-optic cables have been installed in the county. This means that 87 per cent of households and businesses in Norfolk can get a superfast broadband service (24 Megabits per second and above), more than double the number who could get these speeds four years ago before the BBfN programme got underway (42%).

The BBfN programme is part of Norfolk County Council’s drive to make Norfolk an even more attractive place to live, work and do business. Widespread availability of high-speed broadband is vital in helping the county’s rural businesses to thrive and attracting employers to the area, as well as increasing children’s and adults’ learning opportunities, reducing social isolation and enabling people to work from home and shop and bank online.

Caroline Williams, Chief Executive of Norfolk Chamber said: “The confirmation of further investment in Broadband for Norfolk is welcomed.  However there is still more work to be done to reach those businesses that still don’t have access to superfast broadband and also to make it easier for  businesses in connected areas to take advantage of the improved broadband speeds.  Norfolk Chamber will work in partnership with BBfN and the broadband providers to encourage greater engagement with the business community to ensure there is improved clarity and understanding on how to access improved speeds.”

Cliff Jordan, Leader of Norfolk County Council, said: “In just a few years we’ve made a huge difference to tens of thousands of people living and working in the county. Bringing high-speed broadband to 95 per cent of homes and businesses will be a great achievement but we won’t be satisfied until everyone in Norfolk can access a good broadband service. So we will continue to push for more investment and make the money we already have go as far as possible.”

Tim Whitley, BT’s regional director for the East of England, said: “The new funding from the district councils, when added to the gainshare success dividend of £5.2m based on good take-up of the service already deployed, will enable the Better Broadband for Norfolk programme to reach even more homes and businesses with high-speed broadband. BT’s network now reaches more than 370,000 homes and businesses across the county when you combine it with our commercial rollout. We’re aware there’s more to do, and the roll-out continues into 2020.”

Minister of State for Digital and Culture Matt Hancock said: “In just four years, our rollout of superfast broadband has doubled the number of premises in Norfolk who can get superfast speeds. But we know that more needs to be done. This is why the Government together with five of Norfolk’s district councils and BT are now investing another £11 million in taking superfast broadband to thousands more local homes and businesses.”

Over the past quarter, the UK’s small and medium-sized manufacturers saw new orders grow at the fastest pace in two years, according to the latest SME Trends Survey produced by the CBI.

Based on responses from 422 manufacturers, the Survey reveals healthy growth in total new orders over the last quarter, underpinned by a strengthening in domestic demand.

Companies said they expect new orders to continue to grow solidly again over the next quarter, with the outlook for both domestic and export demand described by the employers’ group as “upbeat”.

CBI Principal Economist Alpesh Paleja said: “Activity among SME manufacturers is ticking along nicely, with new orders growth reaching a two-year high. The pick-up was largely shouldered by domestic demand with exports yet to see any material boost from the weakness in sterling.”

He went on to warn, however, that the lower pound is clearly stoking cost pressures, which in turn is pushing up factory gate prices and this is likely to mean that consumer prices will also rise.

The survey results show that output continued to grow modestly over the past quarter, but that firms anticipate an acceleration over the short-term.

More than a quarter (29%) of manufacturers surveyed said they were more optimistic, while 14% said they were less optimistic, giving a rounded balance of +16%.

Nearly a third (32%) of respondents reported that their domestic orders were up, while 20% said they were down, giving a balance of +12%. Almost a quarter (23%) said that export orders had risen over the past three months, with 19% saying they had fallen.

In terms of export prices, a balance of +44% anticipate them rising over the coming quarter – the highest level recorded since the survey started in October 1988.

We are delighted to announce the launch of our completely redesigned website.

The new website has been designed to provide the ultimate user-friendly experience with improved navigation and functionality throughout; whether you’re looking to upload your own content, browse through our huge collection of events or find out more about how we can help your business.

With the user experience firmly in mind, our new website has been designed to be more mobile-friendly, load much faster and easier to navigate.

New features:

New Workbench

We have now introduced the ‘workbench’. This is where Chamber members can manage and upload their content more efficiently. You can see which stage your content is at; ‘draft’, ‘needs review’ or ‘published’.

If you are logged in, visit your Workbench

Edit your Directory Listing

We have enabled the ability for Chamber members to update their online directory listings.

Content Filters

We have now implemented filters onto our Events, Training, News and Blogs to make things easier to find.

Why should you upload?

The Norfolk Chamber website can be used by our members as a free PR platform to promote their activities. The type of content you can promote includes case studies, a new product or service, any events you are running, Blogs and training courses.

Some of the benefits in doing this include:

• Average of over 10,000 visitors per month
• Raise your business profile in Norfolk
• Highlight yourself as an expert within your sector

Use our Website User Guide to help you upload content.

Further exposure

We always aim to promote our members content in a variety of ways to maximise the amount of exposure.

Member News and Blogs are always pushed out on our Twitter feed to a following of over 7,600, and put forward for inclusion in our bi-monthly magazine, Norfolk Voice, which has an estimated readership of 10,000 business people.

Member Events and Training Courses are included in our own monthly Events Newsletter to a database of over 9,000 business contacts.

Parliament’s debate on triggering Article 50 and formally initiating the Brexit process is taking place against a backdrop of UK companies arguing that the EU will, and must, remain an important trading partner.

These views have been underlined by the latest International Trade Survey published by the British Chambers of Commerce (BCC).

Based on nearly 1500 responses, the survey found that UK companies remain committed to strong trading relationships with European customers and suppliers despite the UK’s vote to leave the EU.

Three-quarters (76%) of respondents currently sell goods and services into the EU market, with a similar proportion (73%) saying that they source goods and services from Europe.

Despite the UK withdrawing from EU membership, more than a third (36%) of survey respondents reported that they intend to put more resources into exporting to the European market over the next five years.

The survey also found that 18% of businesses are planning to allocate more resources to sourcing products and services from the Union’s Member States.

In terms of the UK’s future trading arrangements with the EU, respondents identified the three main priorities for Brexit negotiations as: tariffs; non-tariff barriers; and product standards, certification and compliance.

Commenting on the findings, Dr Adam Marshall described the results as an important reminder of the fact that it is businesses that trade, not governments. Businesses want the best possible terms of trade following the Brexit negotiations, whatever the ultimate model adopted, he added.

“Although the likely outcome of the Brexit negotiations remains unclear, businesses still see Europe as a primary market for both selling and sourcing inputs – even after the UK leaves the EU,” Dr Marshall concluded.