Chamber News

The October edition of the Norwich Economic Barometer is here! Below are highlighted a few of the key points from this edition:

• The ‘jobs gap’ since the start of the recession has finally closed as Britain’s recovery reaches an important milestone.
• The ONS has revised UK economic growth in the second quarter from 0.8 per cent to 0.9 per cent, as both the dominant services sector and construction enjoyed growth.
• Regional accountancy practice Larking Gowen will employ more than 300 staff and 22 partners across nine offices.
• Norwich-based chocolate maker Gnaw has formed a partnership with a distributer, Blakemore Fine Foods, to enable both firms to boost business with UK retailers.
• Commercial development activity picked up in September although developers have become more cautious.
• Business activity in the region’s private sector grew in September at the fastest rate since 1997, according to a survey of purchasing managers.
• East Anglia’s fastest growing medium-sized businesses have mounted combined sales of £3.9bn, according to new report underscoring their value to the local economy.

To read the full report on the Norwich Economic Barometer, click here.

Norfolk’s economy is expected to see a boost over the next week as shoppers flock to the High Street to prepare for what has become one of the biggest nights of the year. Retailers predict a bump in their autumn profits, and Norfolk traders will be taking full advantage as October 31 falls in the half term holidays.

And with more and more events lined up around the region, experts are confident the combined boost of Halloween and school holidays will be frighteningly good.

Nova Fairbank of the Norfolk Chamber of Commerce said: “Halloween now has one of the largest retail spends after the Christmas period and many Norfolk retailers are capitalising on this. However as Halloween invariably falls within the half term holidays, it is quite hard to differentiate between increased retail spending as a result of half term and spending specific to Halloween.”

Richard Marks from John Lewis, Norwich is one of our Chamber members, Richard said “John Lewis is expecting a boost in sales for gift food and Halloween novelty items during the week.”

And another Chamber member, Vicky Merrison, Marketing Manager from Castle Mall Shopping Centre said “Footfall was up this time last year in the centre, helped by the Spooky City Parade, our own Halloween activities and the children’s half term. We would expect the footfall this year to be level with last year.”

More of Norfolk’s attractions are pulling out all the stops for Halloween, including the Horrible History Trail in Sheringham Park, who are putting on shows, talks and walks with a spooky theme. There will be more people taking on what’s on offer in the city and anything that contributes to the vitality and vibrancy of the city centre is always going to be a positive thing.

As of Friday 07 November 2014 there will be some major changes to the roads in Norwich City Centre. The work will ensure that there will be major improvements to the prime shopping streets of Norwich, just in time for the Christmas Shoppers to feel the benefit. It will also be a big step forward for public transport by improving bus reliability and cutting journey times.

The changes include:

Friday 07 November, permanent changes will be made to remove most of the traffic from St Stephens Street, Rampant Horse Street and part of Surrey Street.

After the morning rush hour on Monday 03 November, new traffic signals at Grapes Hill roundabout will be switched on. This will be the means of access to Chapel Field North, Chapel Field East, and Theatre Street/Rampant Horse Street.

During the evening on Monday 03 November, at 7pm, a temporary road closure will be implemented on Rampant Horse Street (outside Marks and Spencer and Debenhams), to enable the construction of new traffic islands.

During this time no traffic will be able to proceed from Westlegate into Rampant Horse Street – you would need to turn right into Red Lion Street. This means that access to and from Chapel Field North, Chapel Field East, Theatre Street, Rampant Horse Street and all other roads will be via Grapes Hill Roundabout at its new junction with Chapel Field North.

During this closure, no traffic will be able to proceed from Rampant horse Street to red Lion Street or vice versa. The closure will remain in place until the morning of Friday 07 November, after which time only buses and taxis (and cyclists) will be able to proceed from Rampant Horse Street to Red Lion Street or vice versa; this will be the final access arrangements here.

On Tuesday 04 November to Thursday 06 November, completion of the works on Rampant Horse Street will be carried out.

From the morning of Friday 07 November, St Stephens will only be available for buses, taxis and cyclists, with access for general traffic to Red Lion Street via Westlegate: this will be the final access arrangement.

Westlegate will remain open throughout the final week of works, with a single lane and the right turn only onto Red Lion Street; this will be the final access arrangements here.

Full details of all the works can be found by accessing the following web page:

www.norfolk.gov.uk/citychanges

Twenty Four European banks have failed ‘stress tests’ of their finances, the European Banking Authority (EBA) has announced. The banks now have nine months to shore up their finances or risk being shut down. The review was based on the banks financial health as at the end of 2013. Ten of those banks have already taken measures to bolster their balance sheets. All the remaining fourteen banks are in the Eurozone.

The good news is that none of UK banks involved in the financial health-check failed the test. The four UK banks that were subject to the EBA test were: Royal Bank of Scotland, HSBC, Lloyds Banking Group, and Barclays.

Caroline Williams, CEO of Norfolk Chamber of Commerce said: “As the UK banks passed their ‘stress tests’, this should mean that these banks have stronger balance sheets. Which in turn will enable them to support Norfolk’s growing businesses, especially sectors to which they have historically been more reluctant to lend to – such as construction, life sciences and new technology companies.

Profit warnings by UK-listed firms have risen to their highest summer level in six years, according to a new report. The report, by the consultancy firm EY (Ernst & Young), advised that quoted firms issued 69 profit warnings in the third quarter of 2014, up from 56 in the same period in 2013. It is the highest level for the three-month period to 30 September since 2008.

Supermarket giant Tesco and retailer Next were among the companies to issue profit warnings during the period. Profit warnings are issued by companies quoted on a Stock Market to alert investors that profits will be lower than in the previous year.

The survey said that despite a rise in economic output, firms were facing crowded and competitive markets. It also said bargain-hunting customers, rapid structural change and, until recently, a strong Pound (£) had hampered progress. The construction materials industry also issued a high number of warnings because older contracts have come under intense margin pressure due to rising costs.

Caroline Williams, CEO of Norfolk Chamber of Commerce said: The most recent British Chambers of Commerce Quarterly Economic Survey (released 9 October 2014), which includes Norfolk Chamber members, did show a dip in confidence, but overall the Norfolk economy remains strong.

Norfolk businesses are quietly confident and the Chamber continues to see real growth in export documentation numbers, as well as more businesses attending our networking events, both of which are signs of businesses looking for new opportunities to grow.”

Support for Norfolk rail improvements is in the news today. The chair of the New Anglia Local Enterprise Partnership, Mark Pendlington, has been asked to give evidence to the House of Commons Transport Committee today. The Norfolk Chamber, together with partners, will continue to lobby until we get the improvements to the rail services that our business community needs.

In the North of England, plans for high-speed ‘HS3’ rail link moved a step closer after a report by the boss of the HS2 scheme, Sir David Higgins was published. Sir David said: “Better rail links in Northern England were ‘desirable’ and ‘possible’ after being asked to look at ways to maximise the benefits of HS2. Journey times from Manchester to Leeds could be cut from 48 to 26 minutes. The government says it will now produce a strategy looking at options, costs and a delivery timetable for HS3 and an interim report will be produced in March. The east-west improvements will be in addition to the north-of-Birmingham phase two of HS2 which will see a Y-shaped route going from Birmingham to Manchester and Leeds.

Caroline Williams, CEO of Norfolk Chamber of Commerce said: “The Greater Eastern Rail Campaign continues to lobby for a faster more reliable train service from Norwich to London, with improved carriages and significant investment to upgrade the track. Norfolk lacks the infrastructure benefits such as the motorways that the North of England rely upon. Therefore our rail improvements are as important to the Norfolk business community as HS3 will be to Manchester and Leeds.”

The A11 will be closed overnight tonight (Monday 27 October) and on Tuesday and Wednesday nights from 9pm to 6am as part of the current dualling scheme. The diversion route will be via the A1065 and the B1107.

There is also a Southbound closure of A1101 from 9pm to 6am tonight (27th) and Tuesday night (28th) between Pine Tree Avenue, Mildenhall and Fiveways. Access from Fiveways to Mildenhall will still be possible. The southbound diversion will be via Thetford Road and the A1065.

Norfolk Chamber of Commerce is proud to support the Lord Mayor’s Awards, and in particular sponsor the Customer Care Award. Helping businesses find new customers, and develop existing relationships, is at the core of Chamber activity. We’ve been providing help and support for the region’s commerce since 1896; always owned and directed by our business members, and always there for businesses of all sizes, and in all sectors.

We enable companies to find new connections through our publications and by meeting face to face. More than 3000 delegates attend the 90 plus events we hold each year.

Increasingly the region’s businesses reach new contacts locally and internationally, by promoting their businesses through adding news items, events and knowledge articles to the Chamber’s community website with its 5,500 visitors a month and its 4,800+ twitter followers.

It’s in the digital and online arena where the biggest changes are happening to customer care of course. Business to business, and consumer oriented, companies have embraced the demand for online selling. Now they must grasp the longer term implications of retaining customer loyalty in a digital world.

Innovative, pro-active customer care will be a key element in the growth, or otherwise, of the region’s businesses as we pass from relentless austerity into a period of seemingly tentative recovery.

West Norfolk’s businesses have always demonstrated the tenacity and resilience to survive the darker times, and the innovation and attitude to flourish in brighter days. New technology will provide new opportunities to deliver customer care, but established concepts and beliefs, rooted in sound business practice, will underpin the level of customer experience that defines a successful business.

The challenge, to deliver such a level of customer care that is worthy of this award, has never been more demanding. Businesses in our region have raised their game to the highest levels.

We are thrilled to be sponsoring this year’s Customer Care Award. It’s never been a more important barometer of West Norfolk’s commercial climate.

• Enter Now
• Download Form

On Wednesday 15 October 2014 both floors of Norwich CityFootball Club were packedwith the region’s very bestbusinesses showcasing theirproducts and services to theNorfolk business community.

The B2B Exhibition 2014 had over 90 exhibitorsdivided into six different business zones, wowingthe 600+ delegates that attended with theirquality and range of services.

The exhibition was opened by Wendy Thomson,Managing Director of Norfolk County Councilwho also judged the best stand award.

Wendy remarked on the variety of exhibitorsat the event and after much deliberation sheannounced the winners Tipsy & Tumbler.

In addition to the exhibition, delegates alsohad the opportunity to attend 20 minute expertbitesize sessions providing expert advice and toptips across three varied subject areas.

Overall there was a real buzz around theexhibition, there was plenty to see and do, frommeeting Hazel a Marsh Harrier Hawk at the NBCBird and Pest Solution stand to having a healthcheck provided by Wrightway Health.

Don’t forget to put a date in your diary fornext year’s B2B Exhibition on Thursday 15October 2015.

View photos from the event onGoogle+andFacebook.

We would like to thank you for attending the B2B Exhibition 2014. Please take a few minutes to complete the following survey, as your feedback will help us to evaluate this year’s exhibition and increase its effectiveness in the future.

View photos from the event onGoogle+andFacebook.

Create your free online surveys with SurveyMonkey , the world’s leading questionnaire tool.

• In the three months June to August 2014, employment rose by 46,000 compared with the previous three months, the smallest quarterly increase since spring 2013.
• Unemployment fell by 154,000 compared with the previous three months.
• The unemployment rate for June to August 2014 was 6.0%, the lowest since late 2008.
• Youth unemployment fell to 16.0% down from 17.7% in the previous three months.
• Pay including bonuses was 0.7% higher than a year earlier, while pay excluding bonuses was 0.9% higher.
• The East of England now has the highest employment rate of all the UK regions

Commenting on the East of England statistics, Caroline Williams, CEO of Norfolk Chamber of Commerce said: “Unemployment in our region has seen the largest annual fall since records began over 40 years ago. The number of unemployed people is now below 2 million for the first time since 2008. We have also seen the largest annual fall in unemployment amongst our young people (18-24) since unemployment records began. Excluding those in full time education, there are now 468,000 unemployed young people, this is down nearly a third compared to last year.

The latest Labour Market Statistics reflect the results from the recent Quarterly Economic Survey, which also noted that whilst recruitment was strong, there had been a slow down. We are confident that the Norfolk and East of England business communities will continue to strive towards economic growth and prosperity and the creation of more jobs.”

Commenting on the labour market statistics for October 2014, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:

“These figures confirm once again that the UK labour market remains strong. The significant fall in youth unemployment over the past year is a remarkable success story, despite the fact that it is above the national average.

“However, there are some areas of concern such as the slowest increase in employment for fifteen months, which suggests that the pace of economic growth is easing. While the fall in unemployment over the past three months was larger than the rise in jobs, this is because the number of people choosing not to seek work increased.

“With early wage increases remaining below 1% a year there is clearly no case for early rate increases – and we are pleased that this view is now widely accepted by the financial markets.”

Commenting on the report ‘Cutting Red Tape in Europe – Legacy and Outlook’ published today by the European Commission’s High Level Group on Administrative Burdens, chaired by Dr Edmund Stoiber, Caroline Williams CEO Norfolk Chamber of Commerce said:

“The sentiment of this report is in the right place; it tells us that the EU has listened to businesses’ concerns about the impact of burdensome regulations on competitiveness and economic growth. However, it remains to be seen just how far and how fast the EU will go in implementing these proposals.

“While this is often down to Whitehall over-interpreting EU law, there is no doubt that something had to be done at the Commission level to address business concerns. Impact assessments and better engagement with businesses will help to prevent unnecessary regulations in the first place, and make it simpler for businesses to implement those regulations that are important. This is all contingent, of course, on proper business and economic cost impact assessments being carried out.

It is also incumbent on governments to pay more attention to the actions of their MEP’s; too often burdensome legislation from Europe has been proposed or supported by UK MEP’s of all parties.

“However, reform shouldn’t stop with small and medium businesses – we want to see improvements for businesses of all sizes. This is essential if we are to see a vibrant and growing economy in Europe. The next step is for the EU to deliver on the single market for both goods and services, so that it works better for business. This should be a major objective of any future negotiation on reform of the EU.”