Percentage of UK businesses reporting increased export sales remains flat for the 5th quarter in a row at 29%
A quarter (25%) of exporters saw decreased sales, while 46% report no change
Concerns over manufacturing recovery as exporters report unprecedented cost pressures and inflation worries
A survey of over 2,600 UK exporters has revealed that overseas sales growth has been effectively stagnant for more than a year since the economy fully reopened after lockdown. The BCC’s quarterly Trade Confidence Outlook for Q2 2022 showed the proportion of exporters reporting increased overseas sales to be unchanged from Q1 at 29%, while those reporting a decrease remained at 25%. This compares to around 40% of businesses consistently reporting increased domestic sales across the same time period in the BCC’s Quarterly Economic Survey (QES). Manufacturers trading overseas are under particular pressure, with only 39% expecting their profitability to increase in the next twelve months, compared to 48% of service sector exporters. This compares to 43% of all businesses surveyed in the QES. Manufacturing exporters are also the most likely (78%) to expect to raise prices in the next year, a record high. Almost nine out of 10 (89%) firms in this sector cite ‘raw materials’ as their biggest cost pressure, with 74% citing ‘utilities’ and 70% citing labour costs. Responding to the findings, Chief Executive Officer at the Norfolk Chambers, Nova Fairbank said: “The combination of supply chain disruption, soaring prices, and the impact of Brexit red tape and compliance costs has had a chilling effect on exports, especially for smaller firms already scarred by the pandemic. “Recent ONS figures have shown in increase in exports to the EU, driven in part by shortages caused by the war in Ukraine. But our data shows there are serious underlying issues – which are hitting smaller manufacturing exporters the hardest. “Any new Prime Minister must acknowledge the huge challenges being faced by our exporters – often the most dynamic, innovative and forward-thinking businesses in the UK economy. “Then Government must help businesses to harness the opportunities provided by existing free trade agreements, and those coming on stream. Far too many firms are either unaware of the possibilities or are uncertain how to take advantage. “Chambers of Commerce have the expertise and business network to help Government shift the dial. By working together, we can build an end-to-end support service for our exporters which could truly make a difference.”
Future Spaces was held on Thursday 21st July, and hosted by Layrd Design at Norwich City Football Club. The event was all about exploring sustainability and wellness in interior spaces. The event started with networking with a selection of drinks and plant-based canapes offered to the attendees followed by an introduction to the event by Will Mayes from Layrd Design. The first speaker was Ruscha Fields from The Good Plant Company. Ruscha talked about biophilic design and how to successfully incorporate planting within the workplace. Ruscha stated that having plants present makes us feel connected to nature and the environment ultimately making us feel relaxed and calmer. Having plants in the workplace has been proven to enhance wellbeing and increase productivity. If you are worried about the upkeep of having numerous plants around the office then why not get artificial plants, these give off the same positive effect as real plants. Ruscha was also involved in the Moss workshop which took place after her talk. Here attendees built their own moss frame which they could take home and put in their office. After a short break, Michael Aastrup from Tarkett talked about their company’s approach to sustainability. Tarkett is the 3rd largest flooring company in the world, and they have now taken the approach of putting sustainability first ahead of design and functionality. Tarkett recycle old carpets and fishnets for yarn and even acquire the film from car windscreens to use in their products. Michael stated how committed Tarkett is to better living spaces and promoting healthy indoor environments, one way they show this is with their unique dust capture system in their carpets. The last speaker to finish the event was Nathan Huxley from Orange Box. Nathan spoke to us about the importance of being/working together and creating spaces people want to be in. He spoke to us about the idea of relationship buildings “where the ‘office’ is no longer the health problem, it’s the wellness solution”. The top of the terrace, where the event was held was kitted out with furniture from Orange box for everyone to try, which you can see below. A group favourite was their QT pod which provided privacy and comfort to work in. Future Spaces provided some interesting points businesses should consider around sustainability and wellbeing in the workplace, and how having a small plant on your desk can make a huge difference. Photo credits – Norfolk Chambers of Commerce https://www.layrddesign.co.uk/https://thegoodplantcompany.com/https://home.tarkett.co.uk/en_GB/https://www.orangebox.com/ Speakers:
We’re all now familiar with the cost of living crisis – how households are struggling to keep up with bills and afford the rapidly rising cost of food, fuel and other essentials. But there’s another crisis which is dramatically hitting businesses, and that’s the ‘cost of doing business’ crisis. Firms across the country are being confronted by rapidly rising costs of vital raw materials, fuel, wages and, of course, energy. Battered businesses now face a stark choice – whether to pass on the increases to their customers, or to try and absorb these new expenses to keep prices down. In order to cope with these dramatic cost increases, firms need to get a grip on their expenditure. Installing a smart meter is a positive step in taking control of business outgoings. Once installed, energy readings will be sent directly to the supplier, bringing an end to estimated bills. Firms with 10 employees or less could be eligible for a smart meter. To find out more please click here. You can also contact your energy supplier or broker. Photo credit Smart Energy GB / BCC
Commenting on the launch of the negotiations, Chief Operating Officer Nova Fairbank, said:
“Business supports these efforts to develop an improved trade agreement with Israel to boost the supply of services between our countries.
“There are also opportunities to cut the costs of exports and imports through strong digital trade rules and more efficient customs regulations.
“An upgraded agreement could create future-proofed trading terms for years to come, raise investment, and increase the value of our export sales, which are currently worth £5bn a year.”
Anita Leviant, President of Israel Britain Chamber of Commerce (IBCC), said:
“The IBCC business community, in Israel and in the UK, very much welcome the significant steps taken by both governments with the upcoming negotiations.
“The UK is Israel’s largest trade partner in Europe, and both countries already have strong relations, tech, science and innovation cooperation as well as longstanding fruitful bi-lateral trade and investments.
“The IBCC team has been working during the last months, to gather feedback and comments from British and Israeli businesses in order to channel those to the governmental teams on both sides. They have been very keen to listen, remove barriers, update and upgrade the scope, volume and the quality of mutual business and cooperation between our countries into the future.
“It is a unique opportunity where businesses are involved and being heard at such a level, and we wish the teams on both sides a great mutual success.”
Commenting on the Office for National Statistics inflation figures for June 2022, Chief Operating Officer, Nova Fairbank said: “The rise in Consumer Prices Index inflation to 9.4% is the ninth monthly increase in a row and another record high. “That represents a huge amount of cost pressure that businesses and households across the UK have had to absorb. These costs are set to rise further with surges in energy bills coming down the track. “This squeeze on businesses’ operating costs is also reflected in the latest Producer Price Inflation figures which show a 24% rise in the year to June 2022, the highest level since records began in 1985. “Against that background it is no wonder that two out of three firms are telling us they expect to raise their own prices, and three quarters are reluctant to invest. “It is vital that Government sends business a clear signal that despite political upheaval it can still take action on the economy. Beginning a long-promised review of the Shortage Occupations List to ease the incredibly tight labour market would be a start. “The autumn budget must then be the main priority of the new Prime Minister and Chancellor – a chance for them to reset, rethink and get their house in order. “This inflationary surge sits alongside a poor economic outlook and unless the Government acts with urgency the chances of a recession will only increase.”
Commenting on the launch of the negotiations, William Bain, the BCC’s Head of Trade Policy, said:
“Business supports these efforts to develop an improved trade agreement with Israel to boost the supply of services between our countries.
“There are also opportunities to cut the costs of exports and imports through strong digital trade rules and more efficient customs regulations.
“An upgraded agreement could create future-proofed trading terms for years to come, raise investment, and increase the value of our export sales, which are currently worth £5bn a year.”
Anita Leviant, President of Israel Britain Chamber of Commerce (IBCC), said:
“The IBCC business community, in Israel and in the UK, very much welcome the significant steps taken by both governments with the upcoming negotiations.
“The UK is Israel’s largest trade partner in Europe, and both countries already have strong relations, tech, science and innovation cooperation as well as longstanding fruitful bi-lateral trade and investments.
“The IBCC team has been working during the last months, to gather feedback and comments from British and Israeli businesses in order to channel those to the governmental teams on both sides. They have been very keen to listen, remove barriers, update and upgrade the scope, volume and the quality of mutual business and cooperation between our countries into the future.
“It is a unique opportunity where businesses are involved and being heard at such a level, and we wish the teams on both sides a great mutual success.”
Image credit: Getty Images/Chambers Canva Pro 2022
Sizewell C has moved a step closer to starting construction after the Government today gave planning consent for the new power station in Suffolk. The DCO application was submitted in May 2020 and sets out the range of measures the project will take to mitigate the effects of construction and maximise the benefits for local communities. More than one thousand interested parties and statutory consultees gave evidence during the public examination which ran from April to October last year. Today’s decision is the biggest milestone so far in the approval process for Sizewell C. It follows four rounds of public consultation which began in 2012 and involved more than 10,000 East Suffolk residents. Carly Vince, Sizewell C’s Chief Planning Officer, said: “I am delighted that, after months of careful consideration, the Government has given planning consent for Sizewell C. It is a big endorsement of our proposals and supports our view that this is the right project in the right place. “I would like to thank the thousands of people in East Suffolk who contributed to our consultation sessions and the public examination. The input of residents, local authorities, environmental groups and many others has helped us to improve our plans. We will continue to work closely with them to make sure we minimise the impacts of construction and maximise the huge opportunities for the area. “Sizewell C will be good for the region, creating thousands of opportunities for local people and businesses. It will boost local biodiversity and leave a legacy Suffolk can be proud of.” Sizewell C is set to become one of the UK’s biggest net zero infrastructure projects, supplying reliable low carbon electricity to around six million homes. By displacing fossil fuel electricity, it will avoid around 9 million tonnes of CO2 emissions a year. Negotiations with the Government on raising funds for the project are continuing and a Financial Investment Decision is expected in 2023. Last month, the Government announced that Sizewell C could be eligible for funding using the so-called Regulated Asset Base (RAB) scheme which will drive down the cost of the project to consumers. Julia Pyke, Sizewell C’s Financing Director, said: “Energy costs will be lower with nuclear in the mix, so today’s decision is good news for bill-payers. The tried and tested funding arrangement we are proposing means that, by paying a small amount during construction, consumers will benefit in the long-term. “Sizewell C will give a big boost to jobs and skills in nuclear supply chain companies across the country. It will strengthen the UK’s energy security and play a key role in our fight against climate change. “Planning approval brings us closer to delivering the huge benefits of this project to Suffolk and to the UK.” Other approvals required before the project can begin construction include a Nuclear Site Licence from the Office for Nuclear Regulation and permits from the Environment Agency. https://www.edfenergy.com/media-centre/news-releases/major-milestone-government-grants-development-consent-order-sizewell-c Photo credit: EDF Energy
Recently we announced that our CEO Chris Sargisson will be completing his five-year term in July. From the 1st August, our COO Nova Fairbank will be stepping up to the CEO role. We asked some of our board members for questions they’d like to ask Chris and Nova. Chris: What is your proudest achievement in your time as CEO? Without a doubt, it’s been the positive results from the change/disruption piece which has been the theme of my five-year term. Positive is good given it was the task I was set and the reason I was recruited. The challenge when changing an organisation at its DNA level is it takes time, deliberately no ‘big bang wins’ and it’s a full-time job. You start with understanding the purpose and relevancy of your organisation both now and into the future, then you articulate this as a vision, mission, and goal, and then you breakdown every element; culture, brand, processes, pricing, offering, services and then rebuild to fulfil the new vision. This work has to run alongside the serious and privileged role of being the CEO to one of the region’s oldest and largest business groups which, guess what is also a full-time job. Nova: As the incoming CEO, what goals do you have for the Chamber? My goals are all based on continuing with the 10-year plan that Chris and I developed together. It will involve lots and lots of continued business engagement – leading to a better understanding of the business community, continued relevancy and visibility, supporting member-led demand and further digital innovation, and ultimately all of that will deliver greater growth for the Chambers. Nova: What advice would you give to the person who is taking over from you as COO? Run! No seriously, your team is everything and we are so lucky to have an awesome team. The team never ceases to amaze me with their passion, enthusiasm, skill sets, and their ability to adapt and multi-task to get the job done successfully. Chris: If you could give Norfolk Businesses any pieces of advice, what would it be (could be different for start-ups, SME’s, and larger businesses) Three words. Engage, engage, engage. Meet people who you don’t know, and seek and apply the knowledge you don’t have. Seek those in same roles in different sectors. Work is hard and if you’re not careful in occupying all your time, then you’re in danger of only knowing what you know. Nova: If you could give Norfolk Businesses wanting to grow in the next 5 years advice, what would it be? Know your market, know your team and understand what success looks like for your business. You can then reverse engineer the steps you need to take to achieve your goals. You also need to build in contingency and be prepared to adapt – the best-laid plans and all that! Chris: What has been the very best moment from the last 5 years in the business? This has been an amazing job, which of course at times has also been my most challenging job, (so far…worth pointing out that I’m not retiring!). There have been so many amazing moments which always have been due to amazing people I’ve met. So, on that bases, the very best moment would be our B2B event in 2021. The biggest event on our calendar which normally takes 9 months to plan. Covid restrictions only gave us 4 months and with real doubts that ‘if we build it, will they come ?’. The team pulled out every stop and burned all the midnight oil and pulled it off in spectacular, colourful style. For me, my role on the day was to visit every stand, 120 plus and (this still gives me goose bumps thinking about it) the feedback, the smiles, the laughter, and the business being done was just mind-blowing. The Chamber was back. Nova: What are you most looking forward to stepping into the new role? It is an honour and a privilege to be the CEO of Norfolk Chambers and I am proud to be entrusted with the care of the organisation. Our mission is to connect, support and give voice to every business in Norfolk, so I am most looking forward to continuing to deliver the mission. This will involve more engagement to help businesses to connect to each other and to help us to understand how we can best support them; the launching of our focus engagement groups to deliver a much louder and broader voice of business, which will inform everything we do, from events to lobbying. These focus groups will be spread across the whole of Norfolk, from the city to large towns, market towns and villages. They will be open to any business, from any sector, members and non members – we want to hear from everyone. We will be commencing these focus groups in late summer – so watch our website and newsletters for details of where the nearest focus group to you will be. Nova: You’ve already played such a huge part of the Chambers for the past (many, many years) what do you think the most crucial changes were in during Chris’ CEO ship and how are you hoping to continue that? That makes me sound ancient! But on the plus side it does give me a unique insight of how we used to do things, what works well, what is most important to the business community in Norfolk, and how we, as an organisation, need to behave and operate to ensure our continued success. I think the most crucial change Chris made was to put the customer at the heart of everything we do. The most critical question we now ask when considering any new concept or a potential contract is ‘how does this benefit the members?’ Another crucial change was the culture and ethos of the team – everyone has a positive ‘can-do’ attitude – all of which is designed to support the customer. Finally, we have also made great strides to ensure we are truly the Norfolk Chambers and that we are visible across the whole county. Find out more about the passing of the torch here Photo credit Norfolk Chambers
Commenting on the latest ONS Labour Market statistics released today, Chief Operating Officer, Nova Fairbank, said: “The labour market remains incredibly tight, in many cases affecting firms’ ability to maintain normal operations. Although these figures show the employment rate has risen it is having no noticeable impact on the overall number of job vacancies. “The problems in the labour market are restricting growth and choking off any hope of a recovery for many firms; as inflation, supply chain disruption and energy costs also add to their headaches. “But there are several avenues open to businesses and the government to shift this data in the right direction. “We need to bring more economically inactive people back into the UK labour market by offering flexible working practices, rapid re-training opportunities and a focus on workplace healthcare and support. “The Government must also reform the Shortage Occupations List criteria to include more jobs at more skill levels to give firms breathing space to train and upskill their workforce. “The huge number of vacancies is holding back productivity and growth, and employers are at their wits’ end.” Photo credit: Norfolk Chambers
Co.ngraulations to our International Trade Apprentice Ethan Saunders-Johnson for successfully completing his training as an authorised signatory for ATA Carnets. What are ATA Carnets?
Do you have to take samples with you on your overseas sales trips?
Do you participate in Overseas Trade Fairs or Exhibitions?
Do you ever need to take Professional Equipment overseas?
If you can answer yes to any of these questions, you may find that using an ATA Carnet will make the trip so much easier. The ATA Carnet is an international customs document that permits duty/tax free TEMPORARY import of goods for up to one year. Using an ATA Carnet cuts out the red tape for you at border points avoiding cash deposits and the like in the country of temporary importation. Find out more here Photo credit: Norfolk Chambers
On Thursday our Events Manager, Amy Wright, and Digital Marketing Apprentice Emma Jermany attended the Royal Norfolk Show. The annual event returned for 2022 after a 3-year hiatus for its 175th year and it attracted an estimated over 90k visitors and 700 businesses. Amy and Emma spent the morning visiting some of our Chamber member’s stands including UPP, EACH, Norwich High School for Girls, Norwich City FC, Buy Local, Plant Grow, Barnham Broom, Anglian Car Charging, and not forgetting the Big C who had a great interactive stand. They also visited the Beryl Bikes stand where they were offering prizes to win 100 free minutes by spinning a prize wheel. After enjoying the RAF Falcons parachute display, it was time for our networking session at the Hospitality Tent. Our COO Nova Fairbank and Amy Wright presented on the growth and Co.nnections for The Norfolk Chamber of Commerce followed by drinks and networking. It was wonderful to see and network with so many Norfolk businesses, we’re already looking forward to the show next year.