At our flagship Economic Breakfast on Wednesday 2nd October we were joined by British Chambers of Commerce’s Economist Suren Thiru. We also had two of our lovely Chambers Business Award regional winners with us: Gnaw Chocolate who won Export Business of the Year, and Indigo Swan who scooped the Workplace Wellbeing award. They were presented with their awards by Chris Sargisson, Norfolk Chambers CEO, who praised the excellent work that both companies do.
Suren gave a very honest view of the state of the UK Economy including factors affecting businesses, the UK’s place in the global economy, and how the East of England is faring in comparison to other regions. He outlined a number of factors affecting businesses and the wider economy such exchange rates, employment costs, and late payments. He also acknowledged that uncertainty in the wider economy has a real impact, including Brexit, the global economic slowdown, and the possibility of a forthcoming general election.
It wasn’t all doom and gloom though as he highlighted the fact that the UK is not alone, across the globe economies are slowing down. There was good news for the East specifically as we are in the top 4 of regions in the UK for productivity. Overall it was a very frank assessment of the current climate and provided delegates with some good food for thought on what they can do to strengthen their business positions.
We also heard from Richard Bailey from Steeles Law, who sponsored the morning, on their year of aspiration, growth and celebrations as Steeles Law turns 50! Delegates also heard about the excellent work that the featured charity, OPEN, do supporting the local youth community.
The British Chambers of Commerce’s Quarterly Economic Survey – now in its thirtieth year as the largest UK private sector survey of business sentiment and a leading indicator of UK GDP growth– found that UK economic conditions weakened in the third quarter amid a significant deterioration in manufacturing sector activity.
The balanceof Norfolk manufacturersreportingincreasedexport orders lowest levels since before EU Referendum
The balance of manufacturers reporting improved cashflow drops once again into negative territory
The latest results of the survey of 6,600UKfirms, including those from Norfolk,that employ roughly 1.2 million people, point to an economy sagging under the weight of relentless uncertainty, another looming Brexit deadline, and deteriorating global economic conditions amid heightened trade tensions.
In the Norfolk manufacturing sector, there was a marked downward shift in many indicators in the third quarter. The balance of firms reporting increased domestic sales remained weak and domestic orders also remained in negative territory – indicating more businesses saw a decrease than increase. The balance of firms reporting increased export sales dropped to its lowest level since Q1 2016 and the balance for export orders went negative and also stood at its lowest level since Q1 2016. Business confidence in turnover and profitability among manufacturers continued to fall.
The dominant Norfolk services sector saw a decrease in the balance of firms reporting increased domestic sales and orders, and export orders. The balance of firms confident in turnover and profitability improvements also fell in the quarter, as did the balance for investment in training.
Manufacturers reported that their cashflow position – a key indicator of the financial health of a business – has deteriorated. In the services sector, cashflow held steady, but remains extremely low by historical standards.
Responding to the alarming findings, the BCC is imploring Westminster to take urgent action. In the coming weeks, both government and parliament must do everything in their power to avoid a messy and disorderly Brexit, while at the same time taking bold action to incentivise investment and to cut the high up-front cost of doing business in the UK. In an unwanted no-deal scenario, additional targeted measures will need to be taken by government to support businesses through unprecedented times of turbulence and change.
Reacting to the results, Nova Fairbank, Head of Policy for Norfolk Chambers of Commerce said:
“This is a reality check, not scaremongering or politicking. These are some of the worst Norfolk figures we’ve seen in sometime – and Norfolk jobs, businesses, and the future success of our local communities are on the line.
“Behind each and every one of these statistics sit thousands of real businesses, who are feeling the cold harsh winds of Brexit uncertainty and global trade turbulence right now.
“We need to see immediate action to avoid a messy and disorderly Brexit on October 31st, alongside bold measures to stimulate investment and confidence across the UK and Norfolk. The government must also make urgent preparations to support business cashflow, where the strains of acute uncertainty are hitting businesses, and particularly manufacturers, hard.”
Suren Thiru, Head of Economics at the British Chambers of Commerce (BCC), said:
“Our findings point to a worrying drop-off in UK economic activity, with unrelenting uncertainty over Brexit and a notable slowing in global growth prospects dragging down almost all the key indicators in the quarter.
“The manufacturing sector continues to toil under the weight of diminishing cashflow, weakening global demand and disrupted supply chains, and the data indicates that the sector was a drag on UK GDP growth in the quarter. Although the slowdown in a number of the key service sector indicators was relatively modest, slowing activity in the sector is a concern given its dominant share of overall UK economic output. A stuttering services sector coupled with a worrying downturn in manufacturing activity indicates that any bounce back in UK GDP growth from the contraction in the second quarter is likely to be underwhelming at best.
“Looking forward, weakening orders, confidence and investment intentions suggest that unless action is taken the UK’s current weak growth trajectory could drift markedly lower over the near term.”
Key findings in the Q3 2019 survey:
Norfolk Manufacturing sector:
The balance of firms reporting increased domestic sales rose from -13 in Q2 2019, to 0, whilst those reporting increased domestic orders rose, but remained in negative territory from -19 to -11.
The balance of firms reporting improved export sales fell from +23 to -6 and the balance of firms reporting increased export orders dropped from +15 to -24.
The balance of firms reporting improved cashflow fell into negative territory from +25 to -5.
The balance of firms increasing investment in plant/machinery rose in the quarter from -19 to +10 remaining historically weak, and investment in training rose from -6 to +10.
The balance of firms confident that turnover and profitability will increase in the next 12 months fell from +50 to +38 for turnover and from +19 to +14 for profitability.
Norfolk Services sector:
The balance of firms reporting increased domestic sales fell from +12 in Q2 2019 to +8. Those reporting increased domestic orders fell slightly from +4 to 0.
The balance of firms reporting improved export sales fell from +4 to -5. Those reporting increased export orders continuing in negative territory fell still further from -4 to -5.
The balance of firms reporting improved cashflow rose very slightly from -5 to +2 but remains weak by historic standards.
The balance of firms looking to increase investment in plant and machinery drastically fell from +2 to -14 and fell slightly from +10 to +7 in training.
The balance of firms confident that turnover and profitability will improve over the next year decreased from +30 to +10 for turnover from +12 to -5 for profitability.
The B2B Exhibition 2019 kicks off next week at its new venue: Norfolk Showground. Welcoming hundreds of local businesses, this free to attend event will be a day full of face-to-face networking, relationship building, expert knowledge and problem solving. Opening doors at 10am on Thursday 17th October, The B2B Exhibition is a showcase of how brilliant business is in Norfolk and across the East of England. 100 exhibitors will be displaying their products and services at the show, giving you solutions to your business needs. On the day we’ll be welcoming a wide range of sectors from banking and charities, to consultants and software developers. At B2B our exhibitors are very generous with plenty of exclusive offers, discounts, competitions and giveaways to take advantage of. Some of our picks from this year include Norwich Sunblinds who are doing 3 for 2 on own brand sunblinds, 10% off new websites with Unity.Online and the opportunity to win an overnight stay with Maids Head Hotel. Take a look at our exhibitor offers page to see a full list of what’s up for grabs! Click here. Visitors to the show also have the opportunity to win big in our B2B treasure trail. When you arrive, you’ll be given a stamp card. Visit the 10 stands in the trail, get your card stamped, hand the completed card back in when you leave and you’ll be entered to win £75. However, if you visit the stands in a randomly, pre-generated, secret order, you’ll instantly win £5,000! We have an exciting line-up of knowledgeable workshops running throughout the day, with everything from customer service on social media to building trust within your business. For 2019 we are also introducing speed networking sessions, led by networking, energy expert Ian Hacon of Energise.me. View our full programme here. When the time comes and you need to take a break from the madness of the show, visit our café area where you can purchase drinks from the Green Farm Coffee Van, and lunch items and snacks from The Feed. Or if you’re feeling really hungry, pop outside the exhibition where The Bucket List will be set up with their Norfolk famous loaded fries. Don’t forget to also visit our amazing sponsors at the show. Our Media Partners Archant will be giving out their classic EDP goody bags on stand 26, and close by will be Birketts LLP on stand 29b with their expert team. Desira Group who have sponsored the exhibition entrance will be bringing a fleet of vehicles to create an outdoor display to welcome you to the exhibition, as well as welcoming you inside on stand 27. Look out for our event guide in the EDP on Wednesday 9th October, and make sure you book your free tickets to attend The B2B Exhibition 2019 today! Booking advance tickets means you can skip the queue and be entered into our prize draw. Book today: www.norfolkchamber.co.uk/b2b
The British Chambers of Commerce (BCC) and Bibby Financial Services (BFS) have revealed that uncertainty around Brexit, tariffs and exchange rate volatility are holding back the potential of many UK exporters.
The recent survey included 1,140 internationally active UK businesses, and found that general uncertainty around Brexit was considered the top barrier to export, listed by almost half (47%) of businesses, followed by specific concerns around tariffs and exchange rate volatility, listed by 35% and 33% respectively.
Administrative requirements or regulation were considered a barrier by 30% of businesses and the lack of free trade agreements by 23%. Only 7% of internationally active businesses said that they do not face any exporting barriers.
It is not only internationally active UK businesses that being held back from exporting. Among businesses that currently only trade in the UK (338 respondents), just 17% say that they do not face any barriers to export. Therefore, 83% face barriers to reaching their potential.
The lack of clarity around the UK’s future trading environment is clearly taking its toll. General uncertainty around Brexit is considered the top barrier to export by UK-only businesses (listed by 31%) as well.
As a result, amongst businesses currently trading only in the UK, just 7% per cent expect to begin importing or exporting over the next three years.
The research also highlighted the issues that businesses are increasingly facing in relation to stockpiling, payments and the transportation of goods. When asked about business changes experienced over the past 12 months:
around a third (31%) of businesses reported that they had increased the volume of inventory held;
15% reported that it already takes longer to transport goods to and/or from overseas, even before the UK’s exit from the European Union; and
almost a third (29%) reported that it takes longer to get paid by customers.
Commenting on the results, Dr Adam Marshall, BCC Director General said:
“UK businesses are facing unprecedented levels of uncertainty on multiple trading fronts – and, unsurprisingly, they’re holding back on importing and exporting.
“Just this week, the government finally provided some certainty around tariffs – but, the damage of uncertainty was already done for many firms.
“While international trade always involves an element of risk for businesses, government should be working to lower barriers rather than increasing them. Preventing a messy and disorderly Brexit is the immediate priority, but ensuring continuity of trade with third countries and providing firms with clear and timely information about future trade processes, would go a long way to removing unnecessary obstacles.”
Edward Winterton, UK Chief Executive, Bibby Financial Services, added:
“Chronic uncertainty resulting from Brexit is undoubtedly stifling international trade amongst UK SMEs. Importers and exporters are in limbo, and many are postponing investment decisions, while they await further information. Many others are focusing resources on ensuring they’re prepared to deal with the potential impacts of a no-deal scenario.
“SMEs are telling us that they need clarity over the detail, and it’s imperative that the Government looks to provide this as soon as possible to enable businesses to trade with confidence, both domestically and internationally.”
The construction industry contributes £90billion a year to the UK economy (6.7% of the total) and is set to grow by 5.6% over the next 5 years. As part of an ongoing project aimed at readying SMES to bid for major supply chain work Norfolk Chambers of Commerce, Norfolk County Council, New Anglia Growth Hub, and Vattenfall held a Gearing Up To Grow workshop in Swaffham on Wednesday 9th October. The half-day session gave delegates the tools and insights they might need to win such pieces of work.
First up was Saul Humphrey who covered a Tier 1 Construction Perspective, he gave an overview of the UK construction industry, the strategy in the region, minimum requirements for winning work from a Tier 1, the crisis facing the industry, and what the future looks like. Saul highlighted the major positive impact the construction industry has on the UK economy and the various ways it contributes. He gave delegates a number of tips for working with Tier 1s including checking out their individual requirements and coming up with an almost standardised approach to bidding for work. There are a number of factors threatening the industry from the housing crisis to climate change, Saul suggested that the responsibility for solving these lies with everyone involved in the sector. The skills shortage is also having an impact and he suggested a number of ways that companies could work with young people to get them interested and considering construction as a viable career path. His final point was that companies need to “modernise or die” and that the best thing companies can do is embrace change.
Next came Steve Grace from Adept Supply Chain Solutions who encouraged delegates to ensure business health by employing his tools. He explained that a business cannot thrive unless it is built on the solid foundation of health and the same can be said for the supply chain, it’s only as strong as its weakest link. Customer satisfaction and meeting their expectations should be the main driver of business growth, to ensure this he said businesses should consider Quality, Cost, and Delivery to keep customers happy. As part of a business plan leaders should consider a growth plan that incorporates a culture of change management, which is constantly being measured and evolving. Steve then introduced a number of tools that can be used to measure growth and ensure waste is eliminated. Steve’s key message? Turnover is vanity, profit is sanity, and cash-flow is reality!
Focusing on skills we had Martin Frost from Norfolk County Council, who introduced the council’s ambitions for combatting the skills gap through: driving skills progression, providing agile response training, and equipping young people for success. He used Netmatters as a case study as they found it very difficult to recruit enough developers to support their business growth, to answer this they developed their own in-house programme which brought in inexperienced candidates and gave them the opportunity to gain skills on the job. A degree course gives students about 150 hours coding experience over 3 years, Netmatters’ programmes gave 850 in six months. Martin invited businesses to give their thoughts on what other support Norfolk County Council could provide to tackle their own skills needs.
For most businesses accessing funding is part of the growth process, Nigel Best from New Anglia Growth Hub took delegates through the various types of funding to consider in the penultimate session of the day. New Anglia Growth Hub has awarded £28million in grants since it started through a variety of grant schemes, they are also able to signpost to other organisations and funding streams that may be suitable for your business. Nigel also highlighted that “traditional” funding such as grants and via the bank are not the only options available to a business and that they should consider the option that works best for them.
Our final speaker was the excellent William Bridgman from Warren Services, a family owned engineering firm, who gave their story about embracing IT to help streamline processes and create efficiencies that previously did not exist. He explained how embracing IT and incorporating it into their existing processes increase efficiencies without resulting in job losses. One clear example of this was their accounts department which had just over 3 people in it previously, through the introduction of new systems they reduced this to 1 but instead of making people redundant they encouraged them to retrain. One of the team who used to be in accounts and had years of experience is a now a developer who looks after their system! It was a really interesting lesson in how IT can have a very positive impact on your business and by working with suppliers and customers you can actually encourage them to do the same thereby streamlining the entire supply chain.
There were some informative stories told throughout the day and lots for delegates to go away and think about around innovation and collaboration. Every presenter had their own examples of when they themselves have had to innovate or collaborate with another company to thrive, showing that the way forward is to work together.
A big thank you to all our speakers: Saul Humphrey, Steve Grace, Martin Frost, Nigel Best, and William Bridgman for being with us. If you are interested in hearing about upcoming workshops please contact [email protected] who can ensure you are informed.
Commenting on the Queen’s Speech opening a new session of Parliament, Dr Adam Marshall, Director General of the British Chambers of Commerce said:
“Our message to government is simple: put the economy at the forefront of your agenda. These are unnerving times for businesses facing Brexit uncertainty, global headwinds and a UK economy in stasis. The government’s economic plan must be grounded in reality, taking into account the conditions facing firms and the need to minimise further disruption.
“Amidst the ongoing political turbulence, businesses can’t afford for government to lose sight of its responsibility to create conditions that support growth and boost investment – much of which doesn’t require new primary legislation. That means action to lower the upfront costs hitting firms, boosting investment in infrastructure and skills, and providing considerable investment incentives to companies.
“We’re at a critical juncture in the Brexit process, but the voice of business has been constant and unwavering since the referendum: a messy and disorderly Brexit must be avoided. To avert an overnight change in trading conditions and damaging economic consequences, all sides need to do everything in their power to find a way forward in the coming days.”
On immigration:
“Business is looking for government to commit to a clear and consistent future immigration system that is based on economic need. Firms that rely on overseas workers to plug local shortages need clear detail on the rules for continuing to access these skills in the future. At a time of critical recruitment difficulties, companies need to be able to hire workers from aboard all levels and functions without masses of red tape, high costs or long delays.”
On trade:
“UK businesses need a properly-funded trade strategy that gives firms the support and confidence they need to sell their goods and services around the world. Prioritising continuity of trade for UK businesses and minimising the potential for any disruption in the turbulent times that may lie ahead should be the goal of this government. Alongside that, we need more ground-level trade promotion and guidance to take advantage of the opportunities that new trade agreements may present.
“Businesses are also still waiting for the government to legislate for a long-term Trade Remedies Authority to protect UK businesses and interests against dumping and unfair practises.”
On infrastructure:
“For the UK to prosper post-Brexit, we have to get the basics right, including a fully integrated and modern infrastructure network. The proposed National Infrastructure Strategy must engage closely with business communities to set out feasible measures for improving the road and rail network and boosting the reliability of broadband connectivity in all parts of the country.
“The message from government and ministers should be full-throated support of the major infrastructure projects that our businesses need and that send a strong message to global partners that the UK remains a great place to invest. There can be no further dithering on the delivery of all phases of HS2 and a third runway at Heathrow.”
On devolution:
“Business communities will welcome the commitment to a Devolution White Paper. Any proposals must have a clear purpose, a strong role for business, and a defined replacement for EU funding. Business will support greater devolution of spending decisions when it’s clear that money intended to boost local growth is actually spent on local growth.”
On the environment:
“The government’s ambition to position the UK as a global leader on the issue of climate change is laudable. For many firms the path to achieving this could bring growth across a range of sectors, technologies and markets. Together with business communities, the government should build a plan for how we will work across the four nations to reach net-zero by 2050, while also maintaining security of energy supply and stable prices.”
The EDP has recently released the exciting news of the finalist list for one of the biggest business awards in the county; Norfolk Business Awards. It’s great to see several of our members have been selected for a number of the categories, for the full awards list and finalists (click here). These awards highlight the hard work of the companies, and staff teams, as well as shining a light on our innovative businesses in Norfolk. We wish everyone good luck in the next stage.
The winners of the overall awards and business of the year will be announced at the Gala dinner on Thursday 21 November, held at the Norfolk Showground, with James Nesbitt the international TV star hosting the event- not to be missed! So do keep an eye out for the winners over the next month. To read the full EDP article published in Wednesday 16 October edition, click here.
Commenting ahead of the Prime Minister’s speech on deregulation today, John Longworth, Director General of the British Chambers of Commerce (BCC) said:
“No business could disagree with the government’s commitment to reduce unnecessary red tape. Good progress has been made in removing domestic regulations, and the Prime Minister is right to lead a charge in Brussels to reduce European bureaucracy.
“However reducing regulation is as much about quality as it is about quantity. Removing hundreds or thousands of laws from the statute book will only have an effect if companies on the ground feel that the burden of needless regulation is lifting.
“Britain’s deregulation drive must also not be derailed by costly new laws affecting firms. At present, both tax changes and EU regulations are excluded from the government’s “One-in, Two-out” rule for new regulations. This loophole blunts the impact of the policy. All new regulations, from whatever source, should be scrutinised and their burden minimised as part of this system.”
The United Kingdom will leave the European Union on the 31 October 2019 and your business will need to take action to get ready.
Join a free Brexit Business Readiness Event in your area to meet government advisers and to find out what actions your business needs to take to prepare.
The events will combine a keynote address, interactive support, advice stands and in-depth sessions led by subject matter experts. They will provide you with specific business-focused advice and help.
Events will be taking place across the UK and new locations will be added to this website as they’re confirmed.
Commenting on Saturday’s Parliamentary debate, Dr Adam Marshall, Director General of the British Chambers of Commerce (BCC), said:
“While the parliamentary drama continues, in the real world businesses wait anxiously for a clear outcome.
“In the coming days the onus is on the government to answer the many questions businesses are posing on the Prime Minister’s deal – and its potential impact on trade, investment, communities and jobs.
“At such a critical moment in the process, the government must give business an iron-clad guarantee that it will not seek to take the UK out of the EU without a deal on 31st October. Getting a Brexit deal is far more important than simply getting it done.
“Allowing the UK to slide toward a Halloween no-deal – whether by design or disarray – would be an act of economic and political negligence. As frustrating as it would be to many in business, a short extension to unlock a comprehensive solution and a smooth transition is still infinitely preferable to an overnight economic shock.”
The B2B Exhibition made its debut at Norfolk Showground on Thursday 17th October, opening its doors to the business community 21 years after it first began. The move to Norfolk Showground saw the event grow significantly with more attendees joining us for a day for face-to-face networking and problem solving. Overall, the event had an increased sense of community with all exhibitors together in one hall, as well as a fun and buzzing atmosphere from start to finish. Doors opened at 10am and all 99 of our exhibitors were ready to go, including event sponsors Desira Group who welcomed businesses to the exhibition with an outdoor display of their vehicles. As visitors began registering and queues built up to get inside, Norfolk Chambers CEO Chris Sargisson began judging the best stand award with guest judge and Norfolk Chambers President, Fiona Ryder. Our judges went around the exhibition spending time with all of our exhibitors, taking part in interactive activities and meeting top Norfolk businesses. Although our judges encountered everything from puzzles, sweet treats and even puppies on stands, GGS were crowned winners of the best stand award 2019 with their fun and interactive photo booth – that they built and designed themselves! Our judges agreed that this not only allowed you to have a fun at the event, but it made visitors to the stand re-engage with GGS Norwich by having to visit their Facebook page to view the photos. The stand also showcased the work GGS do, with an exciting exhibition display, photography and the graphic design work. Photos from the photo booth can be found here. Chris Ball, Creative Director/Photographer at GGS said: “We always look forward to the Chamber of Commerce B2B exhibition as it is the only one we do on a regular basis, and, in fact, I think we have been at every one since it started. We love it that we can connect, face to face, with so many of our clients; many of whom we normally only deal with on the telephone, and that we have the opportunity to meet plenty of new people, too. The new venue was excellent. There was a real buzz about the place on the day and the increased ceiling height and roof space gave us the opportunity to be a little more creative with our stand this year. It’s always a challenge to come up with something a bit different and which will engage with and attract visitors. Previously it’s been cakes or a competition, or even a game; but this year’s Photo Booth was a real hit. Feedback was fabulous, and by only making the photos we took available next day on our Facebook page we managed to extend visitors’ engagement with us over a number of days after the event. And we were absolutely delighted that it won us ‘Best Stand’, too! Result!!” Throughout the exhibition we had 20 minute workshops taking place from Matt Sykes from Salescadence, Aimee Konieczny & Hayley Leech from Indigo Swan, Neil Foley of Business Growth Club, Kathy Ennis of Little Piggy and Eleanor Bougie-Smith of SocialB. Their expert workshops provided attendees with key takeaways covering customer service on social media to business boosting tips. We were also delighted to have Ian Hacon of Energise.me leading on some speed networking sessions in the centre of the exhibition. This provided attendees with the chance to meet various businesses in quick, 1 minute chats before moving on to the next person. Ian gave our speed networkers some useful advice before they started each session, including the tip to tell the person something interesting they’ll remember, don’t just pitch. For 2019 we took a big leap from previous B2B exhibitions, with a new venue, new opportunities and much more happening both behind the scenes and on display. The B2B Exhibition will return to Norfolk Showground on Thursday 15th October 2020. A big thank you goes to our sponsors and partners at this year’s event: Archant – Media PartnersDesira Group – Outdoor SponsorsBirketts LLP – Bronze SponsorsZing Insights – Feedback Partners
Norfolk County Council have released their latest economic report for July – September 2019 – Quarter 2. The report highlighted:
Employment levels in Norfolk has increased and is at its highest levels since 2017
Average weekly earnings in Norfolk have risen by 9% but are still lower than the national average
A vertical farming company is considering moving into Norfolk – there is potential for 4 farms each employing up to 35 people
Norwich Western Link preferred route announced. The route will connect the Northern Broadway to the A47
European Skills Funding call is currently open until 2 December. It is aimed at enhancing equal access to lifelong learning and improving labour market relevance of education and training systems