Chamber News

The British Chambers of Commerce (BCC) Quarterly Economic Survey – Britain’s largest and most authoritative private sector business survey, based on more than 7,000 responses from firms in Q3 2016 – shows a mixed picture, with an improved short-term performance in the manufacturing sector set against a further slowdown ingrowth in the services sector.

The survey – the first covering the period after the EU referendum – shows that Norfolk manufacturers enjoyed improved domestic and export sales compared with the previous quarter, with many benefitting from sterling’s recent fall. Meanwhile, the balance of Norfolk’s service sector firms reporting improved domestic and export sales was at a low level with export balances falling into negative territory.

The survey’s results suggest that the Norfolk and UK economy is still growing – albeit at a lower level than before the referendum – and supports the BCC’s forecast for growth of 1% in 2017.

The survey suggests that near-term uncertainty following the vote to leave the European Union has led Norfolk businesses to lower their expectations for hiring, turnover, and investment in plant, machinery, and training.

Given this mixed picture, and muted business investment intentions, the BCC is urging the government to use next month’s Autumn Statement to boost business confidence – by giving the green light to key infrastructure projects, and by introducingmeasures that ‘crowd in’ business investment and job creation.

Key Norfolk findings in the Q3 2016 survey:

• Overall, the figures for both the Norfolk manufacturing and services firms indicate growth, but at a slower pace than before the referendum
• In the manufacturing sector, the balance of firms reporting improved export sales rose to +13, from -11 in Q2 2016.
• The balance of Norfolk firms reporting an increase in advance export orders is +13, up from 0. One factor may be the fall in sterling, which has made some UK manufacturers more competitive.
• Domestically, the balance of Norfolk manufacturers reporting increased sales increased dramatically from to +7 from -15, although those reporting increased advance orders fell somewhat, to +0 from +19
• In the last three months, the balance of manufacturers hiring more staff rose thirty two points to +0 from +32, although in the services sector the number fell seven points to +9 from +16
• Fewer firms in both sectors expect to take on staff in the next quarter. For services the balance for firms (+18, down 5) is the lowest since Q2 2013
• In the services sector, many balances saw a decrease on the previous quarter
• The balance of Norfolk services firms reporting improved domestic sales fell sharply to +10 from +21, while the advance orders balance fell from +19 to +0 – indicating a significant slowing of growth. This was reflected in the results for the East of England and nationally
• On services exports, the balance offirms reporting improved sales remained in negative territory and fell from -9 in Q2 to -12 in Q3 2016, while the balance of firms reporting an increase in advance orders fell further, from -9 to -14
• Norfolk’s manufacturers gained considerable confidence in both their expected turnover and profitability. However those in the Norfolk service sector reported that their confidence in those areas was waining.
• Norfolk firms in both sectors have reported that the exchange rate is a greater concern to their business than three months ago, with 38% of services businesses (up from 12%) and 68% of manufacturers (up from 19%).

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

“While many Norfolk manufacturers have seen something of a bounce this summer, Norfolk’s services sector has slowed significantly, and our data suggests that slower growth is likely in the months ahead.

“Although it is important not to take one quarter’s figures in isolation, the BCC survey does show that growth in Norfolk has slowed further since the EU referendum. However I am confident that businesses in Norfolk are resilient and innovative. They will continue to strive towards delivering greater economic growth and jobs for our region.”

Also commencing on the results, Dr Adam Marshall, Acting Director General of the British Chambers of Commerce, said:

“Boosting business must be a key task forgovernment in the months ahead, particularly as forward confidence on turnover and profitability has flagged for firms across the UK.

“The Prime Minister has given businesses some clarity on the timetable for Article 50, and on short-term regulatory and legal issues. This is helpful, but needs to be followed up by a firm demonstration that the government has a clear and coherent strategyto defend the UK’s economic and business interests in the negotiations that lie ahead.

“Firms are concerned over investment, hiring, and profitability. The Chancellor’s Autumn Statement is a crucial opportunity to incentivise business investment and overseas trade. Final and irrevocable decisions on infrastructure projects, both big and small, would also boost business confidence and support investment all across the UK.”

The B1149 Holt Road will reopen at3.29pm today (Thursday 6 October) after the early completion of service diversion and tree clearance work for construction of Norwich Northern Distributor Road.

This first phase of Holt Road service diversion work involved the insertion of a sleeve for the diversion of a water main and irrigation pipe. The second phase (see below) will be to insert a sleeve for the diversion of a major gas main. Attempts to carry out the work in August under two-way traffic lights had to be abandoned because the depth of the gas main and position of the fragile asbestos cement water main required deeper excavations under full closures of the B1149 Holt Road.

This week’s phase one road closure was also used for tree felling and site clearance at the site of a new roundabout that will connect Holt Road to a realigned Drayton Lane. Once complete, the new Drayton Lane will provide the main route south from Horsford for all B1149 traffic.

Phase two of service diversions will begin on Monday 10 October, with Holt Road closing between Holly Lane and the Holt Road/Cromer Road roundabout at 9.30am, after the morning peak. The new point of closure will allow access in and out of Horsford via Holly Lane, as well as Church Street.

During this second phase, the traffic lights that have been in use at each end of Church Street will be withdrawn.

Although Holly Lane will provide an additional route in and out of Horsford, both Church Street and Holly Lane will be under pressure at morning and evening peak. Traffic from further afield should avoid using the B1149 through Horsford. There are number of points where congestion or queues could build up:

Morning peak. Norwich-bound traffic using Church Street will have a right turn across the busy A140. Traffic choosing Holly Lane will have an easy right turn from Holt Road (the closure stopping traffic from the south), and a left turn on to Reepham Road towards Norwich, or across the staggered junction into Hall Lane towards Drayton and the A1067.

Traffic heading east along Holly Lane to join the A140 Cromer Road will have to divert via Church Street.

Evening peak. Traffic returning to Horsford from Norwich on Reepham Road will have a right turn into Holly Lane, and will have to contend with traffic crossing from Hall Lane.

Access from Holly Lane to Horsford also means that the route from Norwich using the A140 and Church Street includes a live junction where it meets Holt Road (this is not the case under the phase 1 closure).

Bus services. First 36 will return to its normal route. Sanders services will continue as during the phase 1 closure of Holt Road.

Today we received a very special message from 10 Downing Street. Theresa May, Prime Minister sent a message of congratulations ahead of our 120th year anniversary. The official date of our anniversary is being marked on Friday 7 October, as we were incorporated as Norfolk Chamber of Commerceon this date in 1896.

Theresa May, Prime Minister

“It is my pleasure to send congratulations to the Norfolk Chamber of Commerce to celebrate its 120th anniversary.

“The Norfolk Chamber of Commerce is an excellent voice for the business community in Norfolk and the Chamber’s important work around bettering opportunities for young people is particularly commendable. The Chamber should celebrate these achievements as it looks forward to continuing its important work in the years to come.

“I am sure that this milestone will further encourage the young people and local businesses in the area to mark the Chamber’s incredible legacy.

“Please accept my best wishes on this special occasion.”

With effect from 1 July 2016, amendments to the Safety of Life at Sea (SOLAS) Convention require packed shipping containers to have a verified gross mass (VGM) before they can be loaded on a ship for export.

A three-month settling-in period was suggested by the International Maritime Organization (IMO) to its Member States in which competent authorities were urged to adopt a “practical and pragmatic” approach to the enforcement of the SOLAS revision.

That grace period came to an end on 1 October and seems to have been effective as a recent declaration by the liner shipping association, the World Shipping Council (WSC), together with feedback from various container terminals, indicates that the compliance rate has risen steadily from 1 July and is now about 95%.

However, according to leading insurer of the international freight industry, TT Club, anecdotal evidence suggests that shippers are, in the main, simply adding the tare mass of the container to the previously declared weight of the cargo to arrive at a VGM.

TT Club’s Risk Management Director Peregrine Storrs-Fox said: “While it is positive that shippers recognise the difference between bill of lading or customs declaration weights and VGM, it is insufficient just to add the container mass.”

The industry needs the comfort of authenticated VGMs comparing the actual mass of packed containers obtained by check-weighing in order to have a true picture of compliance, he argued.

Industry guidelines issued by TT Club, in partnership with WSC, the cargo handler’s association ICHCA and the Global Shippers’ Forum (GSF) can be found atwww.ttclub.com.

The EU is proposing stronger controls on exports of certain goods and technologies that – in addition to legitimate civilian applications – may also be misused for human rights violations, terrorist acts or the development of weapons of mass destruction (WMD).

Trade Commissioner Cecilia Malmström explained: “We are living in turbulent times. Preserving peace and protecting human rights are core objectives of the EU and our trade policy is essential to that aim. That’s why we are proposing a set of modern rules to make sure that exports are not misused to threaten international security or undermine human rights.”

A main element of the Commission’s proposal is a new “human security” dimension in export controls, to prevent human rights violations associated with certain cyber-surveillance technologies.

With the emergence of, for example, specifically designed surveillance technology such as monitoring centres and data retention systems, it is considered essential to ensure that regulations allow EU authorities to stop exports in cases where they could be misused for human rights violations, for repression or in armed conflict.

The proposal also aims to simplify and harmonise the existing export control rules in order to save time and money for EU exporters and national authorities.

As well as being a significant actor in the fight against proliferation of WMD, the EU is a major producer and exporter of dual-use items with a control regime in place since the late 1990s.

A common EU list of controlled dual-use items is included in the annex to EC Regulation 428/2009. The new proposal can be foundhere.

Norfolk Chamber of Commerce is passionate about supporting young people to help them to develop their talents and achieve their aspirations. To tie in with the Chamber’s ongoing campaign encouraging the growth and advancement of Norfolk’s young people, it has established a Fund to support young people locally, creating opportunities and helping them flourish. This is a key priority for the Chamberwith its120 year anniversary in 2016.

The aim of the Norfolk Chamber Community Fund is to provide grant awards to charitable organisations working within Norfolk with young people aged up to 25. The main goal of these grants will be to increase access to employment and training, and so improve the opportunities and career options open to young people across the county.

Grants of up to£2,000are available to support projects focused on championing young people by working with those who are facing particular challenges in accessing employment or training, or developing their skills. Individuals are not eligible to apply.

Eligible projects may include:

• Providing training, leadership or volunteering opportunities for young people.
• Projects that support young people who are NEET or at risk of exclusion to access training and develop skills.
• Jobs clubs and careers support aimed at young people.

Deadline for applications 5pm, Friday 4 November 2016.

For more information about the grant and how to apply visit:https://www.norfolkfoundation.com/funds/norfolk-chamber-anniversary-fund/

On Friday 30 September over 50 Norfolk Chamber Members from across the region joined us at BEST WESTERN PLUS: Knights Hill Hotel for an informative morning with Listers BMW King’s Lynn.

Delegates arrived early to get started on making new connections. Host Heather Garrod, President of West Norfolk Chamber Council introduced our featured charity RSPB Titchwell Marsh Nature Reserve and our first networking ice breaker of the morning. Delegates grouped together on their tables to name famous cars from cropped images, some even got full marks!

Following on from this delegates tucked into a delicious breakfast provided by Knights Hill 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.

James Martin, new Corporate Sales Manager for Listers King’s Lynn took the stage next, ready to give delegates an in-depth overview of their plans for the next 100 years of BMW. He highlighted how far BMW have come in the last 100 years and showed delegates the plans for the BMW, Mini and Rolls Royce, as well as the advanced technology behind them.

The event drew to a close with all delegates amazed by the prospects of the future of automotive technology, from the self-driving to the contact recognition all from a vehicle. Many stayed at the venue to visit our exhibition stands from RSPB Titchwell Marsh Nature Reserve, WLP and DD Health & Safety Supplies, as well as continuing to network with even more delegates, and have a play in the cars brought along by Listers King’s Lynn.

The British Chambers of Commerce (BCC) has published a survey of businesses, which shows that just over a third of companies (34%) have had to increase their wage bills since the introduction of the National Living Wage (NLW) in April 2016.

The survey of more than 1,600 business leaders across the UK, undertaken in August 2016 and supported by Middlesex University, revealed that many companies affected by the introduction of the NLW have already changed their recruitment plans or planned to do so in the future. A quarter of affected firms (25%) have reduced recruitment in response, and 34% plan to do so if the NLW rises to £9 per hour by 2020. Others are looking at changes to staff hours, benefits or pay growth.

These changes reflect the rising cost burden on many companies. Although the majority (65%) of firms pay their staff above the NLW of £7.20 per hour and have not been affected, 25% of those that were affected have increased their wage bill slightly, and 9% have increased their wage bill significantly.

The businesses most exposed to the NLW have largely absorbed the increase in costs for now, but plan to pursue cost reduction measures if the NLW increases to £9 per hour. The BCC urges the government to use caution with future NLW increases.

Key findings in the survey:

• Most businesses pay their staff above the NLW, but more than a third have increased their wage bills since it was introduced in April 2016
• Of the firms whose wage bill increased because of the NLW, most have not yet made major changes, but more of these firms expect to do so if the NLW rises to £9 by 2020
• Only 34% of businesses affected by the NLW raised prices to offset the cost, but 63% would do so if it rose to £9 by 2020
• Of the businesses affected by the introduction of the NLW, 25% reduced recruitment in response, 18% reduced staff hours, 18% reduced pay growth, 24% reduced staff benefits, 25% reduced recruitment, and 37% made no changes
• If the NLW increases to £9 per hour by 2020, 25% would reduce staff hours, 29% would reduce pay growth, 33% would reduce staff benefits, 34% would reduce recruitment, and 13% would make no changes

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

“A decent wage can make a huge impact on employees’ lives and their performance at work, and many Norfolk businesses are able to pay above the NLW.

“However, a significant number of Norfolk firms have already had to re-balance their books to meet the cost of the NLW, which can have a knock-on effect on recruitment or growth plans. Many firms would have to change their business models, by increasing prices and reducing staff, if the NLW increases to £9 per hour by 2020.

“Norfolk Chamber believes that the government needs to take an evidence-based approach to setting the NLW. The rate should be set by the Low Pay Commission and be determined by the state of the economy, weighing up the various pressures businesses face. Further NLW increases need to be proportionate, reflecting business uncertainty, slowing growth and high input costs, to avoid having a negative effect on employment.”

David Williams, Director Corporate Engagement at Middlesex University, added:

“While our research has captured the current sentiments of business around the NLW, the potential rise to £9 per hour is still three years away. This means that businesses have an opportunity to adjust their strategies, as they are having to do with other initiatives such as the apprenticeships programme.

“It is important that Government supports business through these transitions so that employees in the UK can earn a fair wage for their work and businesses benefit from a satisfied and motivated workforce.”

We are inviting a select number of business owners to take part inroundtable event that Norfolk Chamber of Commerce is hosting in partnership with Heathrow Airport.

This event will be held on Friday 21 October 2016, 08:00-10:00 at Holiday Inn, Ipswich Road, Norwich.

The objective of the roundtable is to gather local business representatives together to discuss the opportunities that exist within the Heathrow Airport supply chain and how you can be more involved in their future expansion plans. Heathrow are keen to engage with local business leaders to further understand the business capabilities in your region and hear your views.

By taking part in the roundtable, you will have the opportunity to:

• Discuss the challenges that businesses face in joining Heathrow Airport’s supply chain;
• Contribute to Heathrow Airport’s intelligence on business capabilities in your region;
• Ask your questions about the expansion of Heathrow Airport;
• Learn more about how you could become a supplier.

To confirm your FREE placeat this event please email [email protected], places are limited to four.

Vattenfall launches campaign to register business interest in major offshore wind farm

Vattenfall, the developer of one of Norfolk’s largest wind farms, has called on local businesses to register their interest online with the company, advising “it’s important to start early”.

The Swedish company is at the early stages of developing the 1.8 gigawatt Norfolk Vanguard Offshore Wind Farm. The project, if consented, is scheduled to start construction and operation in the 2020s.

Ruari Lean, Vattenfall’s Senior Project Development Manager for the Norfolk Vanguard scheme, said: “Our experience building wind farms in the UK tells us that if we want to maximise local business opportunities it’s important to start engagement early. Companies can benefit from early awareness of the opportunities, especially by understanding how and when to get involved in the procurement of a wide range of services.”

The energy firm, which is a member of the East of England Energy Group, recently joined the Norfolk Chamber of Commerce. The Chamber said it is keen to help the region secure business from projects like Norfolk Vanguard.

Caroline Williams, Chief Executive Officer of the Norfolk Chamber of Commerce, said: “Renewable energy is becoming increasingly important to the UK and it is great that Norfolk is going to be at the forefront of this new technological solution. We will be working closely with Vattenfall to ensure that local businesses take advantage of the supply chain opportunities this project will bring to the local economy.

“We will also be working together to ensure that Norfolk’s young people understand the long term career opportunities this project will bring.”

Businesses in East Anglia are invited to register their interest in Norfolk Vanguard at norfolkvanguard.vattenfall.co.uk/contactus

In March this year, Vattenfall launched the Norfolk Vanguard project after agreeing a lease with The Crown Estate, the manager of the seabed. A second development area, Norfolk Boreas, was also agreed with The Crown Estate. Norfolk Boreas, with a target capacity of 1.8 gigawatts, is currently at the very earliest stages of development.

(Story also featured on EDP Business)

For further information, please contact: Jason Ormiston, Media Relations; [email protected]; 07794524801

You can get more information on Norfolk Vanguard here>>> https://norfolkvanguard.vattenfall.co.uk/

You can follow Vattenfall on twitter>>> @VattenfallUK

You can get more information on the Norfolk Chamber of Commerce here>>> https://norfolkchamber.co.uk/

Last week was a successful one for Norfolk businesses that took part in the Eastern heats of the Chamber Business Awards 2016.

In the same year that they celebrate their 50th anniversary, we were ecstatic to hear that MLM Multidisciplinary Consulting had been victorious in the ‘Best Use of Technology’ Eastern heat!

Loma Kanu, MLM Multidisciplinary Consulting, said: “Our Norwich Office entered the Chamber of Commerce’s Business Awards and we were delighted to have been awarded Regional winners of the ‘Best Use of Technology Award’. We found out there were over 500 entries for the awards and over 186 entries in this category alone, so were thrilled to have won.

Our application was based around our completed BIM Level 1 projects and what we are doing to implement what is required to achieve BIM Level 2, through the internal groups and training in place.

We also touched on our 50th Anniversary, our plans for growth, use of technology to support marketing and communication objectives and how our company implemented cyber strategy to protect our business, our customers and data.”

Formed in 1966, MLM is a multidisciplinary engineering and environmental consultancy and corporate approved inspector, they provide professional services in all aspects of Environment Planning and Development, Buildings and Infrastructure, Compliance and Sustainability.

MLM Multidisciplinary Consulting will now be put forward for the national award that will be announced at the Chamber Business Awards 2016 ceremony in November.

Last week we were delighted to learn that Chamber member Finn Geotherm had won ‘Small Business of the Year’ in the Chamber Business Awards 2016 Eastern heat.

This accolade comes in Finn Geotherm’s 10th anniversary year and now qualifies them for the national award at the annual Chamber Business Awards 2016 ceremony in November.

Guy Ransom, commercial director at Finn Geotherm, said: “We are absolutely delighted to have won this award. We have been proud members of Norfolk Chamber for many years and it was an honour to be crowned Small Business of the Year in the east, particularly as Finn Geotherm is celebrating its 10th anniversary. To win such a prestigious award is the icing on our birthday cake!”

David Alston, technical director at Finn Geotherm, added: “This award is testament to the hard work, passion and dedication of the entire team at Finn Geotherm, who have enabled the company to grow and expand over the past ten years. We are pleased to accept this award from Norfolk Chamber and very much look forward to the next ten years of installing more, great heat pump systems across the region.”

Finn Geotherm are one of the UK’s longest established renewable heating companies and in the ten years since their incorporation, have developed an extremely high level of expertise in ground and air source heat pumps.

Their business is going from strength to strength and it is no wonder they have been victorious in the Eastern heats of the Chamber Business Awards 2016.