Chamber News

A survey whose results could lead to a major investment for skills for the Suffolk and Norfolk economy has been launched today.

The Suffolk and Norfolk Employers’ Skills Survey 2013 is an online questionnaire, developed by the Chambers of Commerce and County Councils, is aimed at local employers and businesses. It asks for information on current and projected training needs, experience of employing young people and links with local schools and education providers. It will produce results that will be used to show what the specific needs of employers are and where future investment needs to be directed.

Caroline Williams CEO Norfolk Chamber of Commerce said: “Developing our current and future workforce is key to our region’s economic success. We encourage all businesses across Norfolk and Suffolk to take a few minutes to fill in the survey so we can ensure that action is taken to support their needs”

“There is no doubt that employers from across Norfolk and Suffolk continue to face real challenges regarding work force skills,” said John Dugmore, the Chief Executive of Suffolk Chamber of Commerce

“That is why our organisations are coming together to ensure that not only is the matter addressed, but that real changes are made to give employers support tailored to their needs.”

The survey will provide the County Councils, Chambers of Commerce and other partner organisations with valuable information about the state of skills in Norfolk and Suffolk. The responses will help to understand current skill gaps and will provide the evidence needed to change things for the better. The survey will also give employers more say in what training is delivered in future in Suffolk and Norfolk. It should take no more than 10-15 minutes to complete.

The survey can be found at: www.surveymonkey.com/s/skillssurvey13 and closes on 21 June 2013.

The costs to Norfolk County Council of terminating its residual waste contract with Cory Wheelabrator are set out in a report to the Council’s Cabinet Scrutiny Committee, which meets on Tuesday 4 June.

The report on the contractual penalties that would arise in the event of the Council withdrawing from the contract was requested at the first meeting of the new Council on 13 May following the elections on 2 May.

The contract itself is a standard form of government contract. It has been reviewed by Defra and the Treasury before the Government confirmed Waste Infrastructure Grant worth £169m over the lifetime of the project, which includes the proposed construction of an energy from waste plant at the Willows, Saddlebow, near King’s Lynn. The contract is available on Norfolk County Council’s website, except for redactions where the Council has nondisclosure obligations.

A public inquiry into the proposals for an energy from waste plant at Saddlebow was ordered by the Government. This ended on 17 May, with a decision by the Secretary of State on whether or not to grant planning permission expected next autumn or winter (2013/14).

The report to Cabinet Scrutiny deals with two main scenarios:

~ Termination of the contract because planning permission has been refused,

~ County Council withdrawal from the contract after planning permission has been granted.

Termination of the contract because of planning failure would trigger compensation to the contractor. It was necessary for the Council to agree to this compensation clause in the contract or the project would have been very unlikely to be funded by the banks. However, the level of compensation was capped at £20.3m.

There would also be a risk of having to meet costs associated with exchange rates and interest rates. At current market rates this would add £11m to the council’s costs. Termination of the contract in these circumstances would also trigger the early repayment of public inquiry costs, expected to be between £1.5m and £2m.

Withdrawal from the contract by the County Council in other circumstances would be significantly higher, with the costs including debt repayments, redundancy costs and lost profits. The £20.3m cap would not apply. The report does not attempt to provide a figure since it would depend upon the timing of the decision to withdraw, and would require the gathering of a range of commercial information. However, it says that the £80m-£90m cost produced for Cornwall Council when considering abandoning its contract provides ‘a useful indication.’

The full amount would be payable within 40 days of contract termination, and the Council would not be allowed to borrow to cover the costs.

In addition, withdrawal from the contract would lead to the loss of Waste Infrastructure Grant worth £169m over the lifetime of the contract. The report points out that it is unlikely that these would be available for an alternative waste solution – there are ten cases where provisional Waste Infrastructure Grant has been withdrawn by Defra, and no equivalent support has been offered to help affected authorities meet future waste costs.

Economic recovery in the UK remains weak and uneven. Whilst domestic demand increased moderately in 2012, this was largely offset by a pronounced fall in exports. Employment continued to grow strongly, however the weakness of productivity suggests the financial crisis may still be impacting on the supply capacity of the economy. Full Bank of England Overview of Inflation Report

The British Chambers of Commerce (BCC) on Sunday published a major international trade survey, looking at how many UK companies, including Norfolk businesses, are currently exporting and the barriers they face in penetrating new growth markets. The survey of nearly 4,700 respondents shows that the number of member businesses that are actively exporting has risen from 32% in 2012 to 39% in 2013, and that the EU is still the most popular market. However, many businesses are now recognizing the changing dynamics of the global economy, with more companies targeting the fast-growing economies of the United Arab Emirates and India to try and increase their export sales. The survey also found that businesses that are currently established in China see that market as their greatest growth opportunity, compared with potential exporters (those who have never exported before).

The EU remains the most popular market for existing and potential exporters:

• Despite Europe losing its lustre (particularly after the weak Euro GDP data published this week) more than eight in ten exporters trade into EU markets – unchanged from 2012 at 87%.
• Central and South America came out bottom with only 28% of exporters trading with the region. This region is home to Brazil – an economy predicted to become one of the five largest in the world
• 88% of potential exporters would consider trading with the EU
• Only 40% of potential exporters would consider exporting to Asia. The slowdown in the region has diverted attention to Africa and the Middle East, which is experiencing faster growth.

Exporters are looking for the ‘next wave’ of opportunities:

• Of the 20 ‘priority markets’ identified by UK Trade and Investment, The United Arab Emirates, Poland, China and India are the most popular growth markets among current exporters
• Of those considering exporting in the next five years, Brazil, Russia and Qatar rank highly – 32% of businesses will consider exporting to Brazil in the next five years, compared to only 20% of businesses who are currently exporting there.

Market knowledge and access are key factors for those considering exporting:

• More than half of non-exporters (58%) say not having a suitable product or service is the principal reason for not exporting.
• 6% of non-exporters state they have limited knowledge of the commercial aspect of exporting and the difficulties they’ve had finding overseas customers, agents and/or distributors are reasons for not having exported goods or services. This highlights the need to address business’ lack of market knowledge and improve access for exporters.
• 80% of respondents cited ease of finding customers, agents or distributors as the most influential factor when deciding when and where to export, followed by 77% citing cash flow and payment risk and 74% citing the knowledge or skills required.

Commenting on the findings, Caroline Williams CEO Norfolk Chamber of Commerce said:

“With austerity measures set to continue until 2018, it is clear that a sustainable recovery will have to rely heavily on diversifying and re-balancing our economy towards exports. Norfolk companies have massive untapped potential to expand, but they need the right backing to help them compete globally and break into new markets. With Europe losing its lustre and falling behind the economic pace of the outside world, it is high time for all businesses to reassess their priorities. “Small, medium and mid-sized companies need support on the front line. Companies want to work with people who understand business, with the local knowledge on the ground that can deliver practical contacts, potential partners, real customers and supply chains. To meet the scale of the UK’s economic challenge, funding for the development of SME exporters and in-market support should be increased further as part of the government’s upcoming Spending Review.

“Those already exporting to China, the United Arab Emirates and India regard those markets as offering the greatest potential for their business. This shows the confidence and willingness of Norfolk businesses to expand their sales in the fastest-growing markets once they have taken the steps to export there. The positive experience of companies that have made the leap into these markets hints at the huge potential for Norfolk to grow its export base if the support is there to help them connect to these markets.

“The government has a responsibility to help bridge the gap between market opportunity and risk. Businesses should be better exposed to the opportunities of global trade through greater support from the government for promotional activity and tradeshow attendance. The time to act on these opportunities is now, as only then will the UK stand a chance at competing with the rest of the world, and driving our economic recovery for years to come.”

The British Chambers of Commerce Quarterly Economic Survey (QES) is used by the Bank of England and the Chancellor to plan the future of the UK economy and over 7,000 businesses across the UK take part.

The results from Q1 2013 showed that on a national level, almost all major balances improved compared with Q4 2012, however Norfolk and the East of England results were not so optimistic, in particular, the manufacturing balance showed a dip in confidence.

The findings suggested that the overall economic outlook would improve gradually and that growth will probably be positive, but subdued this year. The results also demonstrated resilience among Norfolk businesses, many of whom are remaining confident and looking to invest and increase exports this year.

Both the manufacturing and service sectors in Norfolk showed improved confidence in their turnover, as all recorded increases. However whilst confidence was high for turnover, the manufacturing sector in Norfolk advised that they were not expecting their profitability to improve. The Norfolk service sector results showed an increase in those companies expecting profitability to improve.

Whether you are in the manufacturing or service sector – we want to hear from you. Are you looking to increase your exports this year? Let us know by taking part in this important economic survey.

The survey takes less than 3 minutes to complete, so please take the time to input into this survey to ensure Norfolk has a voice. The survey needs to be completed online by Monday 10 June 2013.

Complete the survey now. The Password is economy and your Chamber ID number is 75

If you prefer a hard copy please print the attached form and fax it back to 01603 633032.

South Norfolk Council, are seeking people’s views on the long awaited bypass around Long Stratton. Residents have campaigned for decades to have the A140 through Long Stratton bypassed, with it carrying tens of thousands of vehicles each day.

Along with the road, South Norfolk Council proposes 1,800 new houses will be built in the area and an industrial estate extended. People have until 26 July to respond to the Long Stratton Area Action Plan consultation which includes the proposed bypass.

The A140 provides the main road link between Norwich and Ipswich and the last time the road was proposed, almost a decade ago, the plans collapsed after they received no government backing.

Norfolk Figures

• Between March and April 2013, unemployment fell across Norfolk by 4.6%
• Over 17,800 current claimants in Norfolk between 16 – 64 years old
• 3.4% of Norfolk’s population is claiming unemployment benefits

National Figures

• In the three months to March 2013, unemployment rose by 15,000, and employment fell by 43,000
• Youth unemployment down 17,000, but still above 950,000
• The claimant count fell 7,300 between March and April 2013

Commenting on the unemployment figures for May 2013, published today by the ONS, Caroline Williams, Chief Executive, Norfolk Chamber of Commerce said: “It is disappointing that overall the UK unemployment figures are rising but Norfolk continues to show that its local economy is ahead of the rest of the country with unemployment figures across Norfolk decreasing. It is particularly pleasing to note that Norfolk businesses are rising to the challenge relating to employing young people with an upward take up trend for apprentices reported. Norfolk’s exporters continue to report strong order books. Business confidence in Norfolk is still fragile but there is an increasing feeling of cautious optimism.”

David Kern, Chief Economist at the British Chambers of Commerce (BCC) said: “It is disappointing that once again we are seeing a rise in unemployment, even if the figures are slightly better than expected. However we have a relatively robust labour market in the UK, and a much lower unemployment rate than that of the eurozone. It is also pleasing that the number of those claiming benefits fell in April. “Worryingly, total pay has risen by only 0.4% compared with a year earlier, the lowest since 2009. With earnings growing at a rate far below inflation, disposable incomes are being squeezed, and it is important that the MPC takes no action that will add further to inflation. It is crucial that the government develops a stronger growth strategy, focusing on areas such as infrastructure, that will enable businesses to create jobs.”

John Wastnage, Employment Policy Adviser at the BCC, added: “With unemployment rising and average wages falling, the latest labour market figures suggest the UK jobs market is starting to run out of steam. The weak economic climate is taking its toll on business confidence and public sector cuts continue to bite. Our own research also suggests we may see a further, modest weakening in labour market conditions over the coming months.

“Against this backdrop, there is even more pressure on the government to implement a bold and effective growth strategy that will enable businesses to expand and to drive economic recovery. Businesses have the hunger and determination to do this, but need more support so they are able to achieve their full potential. The government should also look to radically shift its priorities through allocating more current spending towards capital investment, which will create jobs and wealth over the long-term.”

Commenting on the Bank of England’s Quarterly Inflation Report, Caroline Williams CEO Norfolk Chamber of Commerce said:

“While we have always felt that the earlier gloom over the UK economy has been exaggerated, the positive trends outlined within Governor King’s final Inflation Report appear to be too optimistic. We accept that growth is likely to remain positive, but believe that the speed of the recovery will be somewhat slower than the Governor indicated. The grim eurozone data also shows that our exporters will face obstacles over the year ahead. We also think that the inflation outlook is slightly worse than the report suggests, and future falls in 2013 and 2014 will not happen as quickly.

“With the flexible monetary remit given to the MPC by the Chancellor, and the likelihood of policy changes after the arrival of Mark Carney as Governor, it is important that the MPC does not encourage a faster sterling devaluation to support exports – even if inflation rises temporarily. The unusually weak earnings figures highlight the squeeze on businesses and consumers, and there is a risk that the small benefits to exports will be outweighed by damage to domestic demand that can harm growth.”

Best isn’t always Big! Norfolk Chamber of Commerce is proud to be sponsoring The Small Business of the Year category at this year’s EDP Business Awards. The competition launched on Wednesday 15 May and businesses have until 3rd August 2013 to submit their entries. The EDP Business Award profiles the very best of Norfolk and Waveney businesses and would ensure that your staff and your customers know just how great you are!

Caroline Williams CEO of Norfolk Chamber of Commerce said “Small businesses are vital to the Norfolk economy. Although we do have a significant number of Norfolk’s big brands as members it is the smaller businesses that collectively employ a large number of employees, and they are always willing to give new ideas a go.

Despite the economic climate we know that there are many Norfolk small businesses that are leaders in their market place. They consistently create innovative products and services, trade internationally, develop their staff, and grow a profitable business, yet still find time to support their community. These are the businesses we want to recognise in The Small Business of the Year Award.

Small business owners are often so busy running their businesses they take for granted that what they are achieving is just ‘part of the job’. Norfolk has some amazing small businesses but a too often they are hidden gems. Help us celebrate your success and show our young people and individuals thinking of starting a business just what can be achieved, by entering this award. Criteria details below.

If you do not meet The Small Business of Year Award criteria we could encourage you to enter an alternative category. It would be great for your staff, great for your business and great to be able to show you off to the rest of the region. All details to be found on the special EDP Awards 2013 website https://www.edpbusinessawards.co.uk/

Criteria to be able to enter The Small Business of the Year Award 2013: The Small Business of the Year category is open to all businesses which have an annual turnover of less than £1million. Entries will be judged on their innovative approach to both product/service development and how serving their customer base has resulted in growth in turnover and profit. Entries will also be judged on and their involvement within their local community and how the business develops its employees.

Entries should be able to demonstrate a passion to grow a sustainable business, underpinned by a strong financial performance through strong leadership.

Areas to be covered in your entry should include: access to finance; research into new product/service development; sustainable practices; market analysis; ability to seize new business opportunities; promotional and marketing strategies; employee development and community engagement.

Copies of current balance sheets and profit/loss statements for the past year should also be supplied.

Go here to enter your business:https://www.edpbusinessawards.co.uk/enter-online/

• UK trade deficit in goods and services was £3.1bn in March, down from £3.4bn in February
• Value of UK exports rose by 3.5% between February and March, while imports rose by 2.6% in the same period

Commenting on the UK trade figures for March 2013, published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC) said:

“While it is pleasing to see an upturn in exports in March, Britain’s trade deficit remains disappointingly large. It is clear that we are not making enough progress in rebalancing the economy towards net exports. The figures also highlight the need to make further inroads into faster-growing regions across the rest of the world, while the eurozone, our biggest trading partner, continues to struggle.

“More action is needed to utilise the untapped potential of many British exporters, particularly in the services sector, so that businesses can drive a sustainable recovery. The government must implement measures it has previously announced to support firms looking to break into new markets. In addition, we clearly need a national export strategy focusing on key areas such as trade finance, insurance, and promotion, to enable companies to compete on equitable terms.”

Tracey Howard, International Trade Direct at the Norfolk Chamber of Commerce said:

“More and more businesses are now realising the importance of international trade, so in my opinion, this year will see an increase in businesses starting to trade with new markets.

The Global Marketplace series of events that we organised during 2012/13, were attended by delegates who have never been to our events before, and they were very keen to start trading in the countries that we were highlighting.

This year we will be taking a closer look at the business opportunities in more high growth countries: India, Brazil, Qatar, Russia, South Africa and Vietnam. Exporting to these countries will help businesses flourish financially, which in turn will help to lower Britain’s trade deficit.”

The UK economy grew in Quarter 1, but outlook remains weak. The service sector continues to drive growth as construction and manufacturing weaken and as the deficit reduction continues to bite, the UK jobs market may be running out of steam. For full details, see the attached.

Today the Accredited Chamber Network is launching its national Brand Campaign to showcase the value in being a member of an Accredited Chamber of Commerce. In an online video, Chamber members from across the UK talk about the ways in which their local Chambers have helped to support the success of their businesses.

Accredited Chambers of Commerce are always on hand to offer help and advice for business owners – whether that’s how to export to new markets overseas, hosting networking events, or providing essential services to help entrepreneurs run their businesses day to day.

Commenting, Dr Adam Marshall, Director of Policy at the British Chambers of Commerce (BCC), said:

“Being a member of a local Chamber of Commerce allows businesses of all sizes and from within all sectors stay well connected at both a local and national level. Chambers are unique, as they act as a front door in towns and cities in every part of the UK for the business community. There are no other bodies that do what Chambers do. Their services range from day to day support on how to run a business, to leading global trade missions to countries across the world that help members find new markets for their goods and services. Accredited Chambers of Commerce have the added support of being a part of the British Chambers of Commerce, giving businesses the chance to have their views represented at the highest level of government.

“We know that private sector businesses are at the heart of the British economy, driving growth and creating jobs and wealth. But with a little added support, they can go even further to transform their business into a global success story. Through this campaign we hope to raise awareness of the valuable work being carried out by Chambers of Commerce week in, week out, on behalf of the dynamic and hard working companies that they represent. With more than 100,000 like-minded members nationwide, there has never been a better time for businesses to join their local Chamber.”

Caroline Williams CEO Norfolk Chamber of Commerce said: “This is the first time that the Chamber Network has come together to celebrate what it means to be part of a powerful accredited organization. Collectively we cover the whole of the UK and have links across the world. This enables our members to connect with a massive amount of businesses both locally and globally and do business. The Norfolk Chamber is about ‘Information and Influence’ both key to enable our members to grow their businesses and to help improve the Norfolk economy.