Chamber Blog

Suddenly it’s December! Tradition demands that I use this month’s column to look back at the year, and comment on what lies ahead for 2016. The current situation means that the annual discipline has seldom come at a more pivotal time.

2015 saw our region reflect the national picture, showing, as I’ve frequently commented during the year, some really positive economic signs and significant reasons to believe that we were in a post-recession economy.

Putting that in context, I’ve also commented in this column about the gap between manifesto promises and practical delivery. Where those gaps show in our area is the continued need for us to fight our corner for better broadband, better infrastructure and heightened awareness of the skills gap, which in turn leads to the focus needed on bridging the gap between education and business.

If we look at the overall picture it is of course salutary to consider the political events that have brought so much terror and fear to the world during 2015. It would be churlish to suggest that they don’t put commercial concerns into perspective. It would though be naive to overlook the fact that increased levels of international threat have a direct impact on business.

Domestically, and working against such a stark backdrop, we’ve seen the government deliver what can only be described as ‘unexpected’ pyrotechnics in budgetary statements. Some measures are hard wired directly into business. Others, aimed at the consumer, will have an effect on spending power which indirectly and eventually affects the bottom line.

Our county’s businesses have a long and proud track record of not only withstanding the challenges of a changing world, but also consistently delivering innovation and success – come what may.

I’ve been reminded of that during this year more than any, because in the lead up to Norfolk Chamber celebrating our 120th anniversary in 2016 I’ve had the opportunity to look at our archives and seen how the Chamber has been instrumental in key decisions affecting Norfolk.

As we get into 2016 we will be taking a look over our shoulder, and celebrating achievements over the past 120 years. But with our characteristic attitude, we will like our members, be looking much more to the future. 

This will be a time to take the positives from the last twelve months and build on them. It will be a time to focus on that most important element in our future – our young people. Engaging and enthusing them has never been more important.

Engaging with each other will be essential for our region’s businesses too. Forging ever stronger links in our supply chains, actively meeting, exchanging views and ideas and ‘doing business’ are the real drivers of commerce. Our businesses must also speak with one voice to make sure that Norfolk is heard. There has been much talk of a Northern Powerhouse. Given the right support we can unleash to potential of the Eastern Dynamo that is Norfolk.

We wish you every happiness in the coming season and every success for 2016.

I will not be mentioning any names, of people or organisations, but you may have noticed that there has been a certain leadership election going on.

What interested me was the furore that erupted about two issues, and how they are perceived as crucial to the matter of leadership.

Firstly, there was criticism of the absence of a tie. Not wearing a suit it seemed indicated a lack of capability.

Critics it seems have forgotten the likes of Richard Branson who’ve proved that you don’t need to wear Saville Row to be savvy.

Watch any news programs, and you will see that most of the major digital brands, that dominate the world, were formed, and are run, by very young people whose wardrobes and personal style consist of T shirts, jeans and trainers. Computer code is more important than dress code.

However an equally vocal group was quick to point out that unconventional appearance is acceptable because substance is greater than style.

Its policies, innovation and commitment that matter, not dress sense.

That makes sense, doesn’t it? If the new boss, or leader, of a business looks a bit unconventional does it matter as long as they bring in the results and galvanise the staff with their commitment and passion?

A major bank has been running a campaign which aims to help young people seeking work.

It’s a cause close to our hearts at the Chamber, and vital to West Norfolk. The advice from the bank to young people is, online and personally, to conform.

That could be confusing in a world where substance should mean more than style.

We’re going to have to let the next generations draw up the new rules.

What’s important is that we engage and enthuse young people into the world of work and give them the tools they need.

To maximize the benefit of young people in our businesses, we need to learn from them too, as they are the future!

Time was, back in the 1960s, when any form of marketing, and advertising, that wasn’t directed at the consumer was seen as, frankly, less important. It was rather ‘second division’ stuff often referred to, almost derogatively, as ‘trade’ work. London based advertising agencies and marketing consultancies, high on awards and even higher budgets would gladly let their provincial cousins handle the ‘trade’ campaigns for brands, while they grabbed the glamour of the ‘consumer’ work.

Gradually though it became clear to the more rigorous marketing thinkers that there was little point continuing to sell a product ‘out’ to the end users if there had been no effort put into selling it ‘in’ to the wholesalers and retailers who would actually get it to market – and generate the revenue.

When it became clear that the business that goes on between businesses was really very important, and indeed that some of that activity was a finite process in itself, it was as if a breath of fresh air had blown through the commercial landscape. Now, the practice of ‘Business to Business’, or ‘B2B’ marketing was given the attention and importance it warranted.

All of this coincided with the explosion in communication techniques, and inevitably, and understandably, the new media were used within the B2B arena as much as they were in the consumer field. With a website as your shop window you could reach more consumers than ever before. With virtually no expense you could e mail more potential customers in a moment than even your wildest fantasy print budget would have allowed you to direct mail. Why wouldn’t you then e mail your B2B contacts, and direct them to the ‘trade’ section of your website?

No reason at all.  Except that, with a supreme irony, it’s not enough. The B2B market will seldom be as massively numerous as the consumer sector, and most consumers of most products and services do not expect direct personal contact with the manufacturer. But, in the business to business world, there is still a high expectation of personal involvement, and evidence that it’s worthwhile.

There’s another irony to add to this evolving picture. As markets become more global there’s a real shift to doing business locally. There’s a parallel in the natural world where our heightened awareness of the meteorological ‘big picture’ hasn’t altered what appears to be ever more localised weather conditions.

Businesses buying from and selling to other businesses is the DNA of commercial life. The fact that it’s best done when those organisations get face to face is what drives us at the Norfolk Chamber to continue to deliver events to facilitate that. Our next one – The B2B Exhibition, in Norwich on October 15 – seems set to build on the success of its predecessors.

Local businesses, engaged with one another in profitable commerce; it’s what makes the world go round!

“As predicted the Government having given a ridiculous short timescale for Norfolk and Suffolk to put in Devolution submissions, are now suggesting a joint submission. Although this in itself is not a surprise, a deadline for the end of this week is just plain short sighted.

Although the concept of devolution is positive, that funding should be in the hands of local decision makers, how can an innovative plan be created at such short notice? In addition one of Norfolk’s major stakeholders i.e. the business community, has not been not involved in this cross-border devolution deal bid.

At a dinner in Guildford last week, I was able to question Lord O’Neil of Gatley, Commercial Secretary to the Treasury, who is responsible for masterminding devolution with the Chancellor. Lord O’Neil’s vision was to create a Northern Powerhouse which linked up key cities in the North, within 40 miles of each other to assist in attracting investment to the area. He seemed surprised to have received so many different types of bids from across the UK, as this did not meet with his original concept.

He was clear that the bids needed to create ‘added value’ as money was very tight and would continue to get tighter.

What concerns me about this process is that there is already a lot of talk relating to structure such as “a super council” or a “combined administration” without time for a clear well thought out proposal to meet the Government’s requirements of being “ambitious enough.”  Devolution will have a far reaching effect on the local economy and the Government should allow time for new bids to be planned effectively.

The Northern Powerhouse councils were given time to get it right, why is that being denied to us?”

Norfolk should be congratulated in meeting the Government’s very tight deadline and getting in a letter of intent relating to devolution co-signed by Norfolk council leaders, the chairman of the NALEP and university leaders.

There is no doubt that there is a long way to go and many questions to be answered but it was very important that Norfolk was able to show its intent and its vision to be part of the new, evolving UK structure.

It may be that Suffolk and Norfolk end up working on a joint submission further down the line but without Norfolk committing to this first stage that would not have been an option.

The key points in Norfolk’s letter of intent include to:

• Improve productivity, drive growth and improve housing delivery This would including forming a productivity commission to look at improving productivity and draw up a 10-point rural productivity plan
• Invest in transport and improve infrastructure To develop the development of an integrated, modern transport system including road and rail across county boundaries
• Transform skills and employment Provide a Youth Pledge to give personal support to 14-24 year olds into post-16 learning, an apprenticeship, work experience or a job within 3 months of leaving education or employment
• Transform the delivery of health and social care Work with partners to improve health and wellbeing in the county
• Co-operation amongst key partners Strengthen the joint working of the private and public sector
• Strengthen a coordinated  business support offer Seeking the devolution of national business support schemes

As already covered in a previous article Norfolk Chamber will be working with our partners to ensure the following:

1. Devolution is about economic growth and prosperity 2. Norfolk businesses want participation, not just consultation 3. There need to be formal accountability and clear safeguards 4. Regulation of business must be consistent 5. Complexity needs to be reduced

Sir Tim Berners-Lee has every right to have an opinion on the internet. He’s the man credited with inventing the world wide web. Among his many comments there’s this rather telling observation. 

‘There was a time when people felt the Internet was another world, but now people realise it’s a tool that we use in this world’.

In the business world that point has been proved beyond all reasonable doubt. Digital technology is now a key driver for the engagement of customers. It’s the interface through which businesses communicate and sell, as well as interact with, and gather information from, their markets.

We’re now in a world where we can no longer view technology as a separate function or discipline. It’s an integral part of business life; it’s a wide range of channels and platforms through which real practical business can be done.

What’s more, consumers expect it of businesses. For people of, shall I say over 30, there’s still a feeling of the ‘digital revolution’ being a relatively new phenomenon. But, those born after 2000, and arguably after 1990, are, as we define them, ‘digital natives’. These are people with no recall of a pre-internet world. And they’re the people who are your customers now, and the business leaders of the future.

Leading consultant Huw Sayer, who will be hosting the Chamber’s annual technology event on 23 September at The Space Norwich – this year themed – ‘The Future is Here’ – made the point that the head of John Lewis recently stated that they are now ‘a technology company’. It’s how they interact with  customers, not replacing in-store activity but enhancing the relationship with customers by offering more ways to research products, buy if they choose to, pay online and be kept up to date. It sums up the notion that the internet, and all the digital innovations that have come from it, are not separate from business, they are essential tools for it.

It really has to been seen as all embracing. As much as marketing messages can be sent out through digital technology, feedback and research can be brought in by it. And technology can be harnessed to store and manage the data that’s been acquired – by technology.

Whilst for some the generation of new high tech products is their business, for the commercial world in general the future is about how best to use technology to solve problems and deliver business, and customer, benefits.

Of course some things will never change. Face to face selling over a counter will remain an essential part of commerce for ever. The point is that you can find more customers to sell to, learn more about what they want to buy and engage with them more often than you’ve ever been able to before. And you can do that because of the technology available to you, sometimes literally, at your fingertips.

Which is why you need to be in touch and up-to date. Because technology and commerce aren’t two separate worlds. The one serves the other, for the future of the business world.

Book your tickets to THE FUTURE IS HERE – Putting Technology to Work on Wednesday 23 September at The Space, Norwich by visiting www.norfolkchamber.co.uk/thefutureishere

The Government is now implementing  some of the policies that formed part of their manifesto and there is a gap between a government’s policies and their political agenda. I’m not about to make party political points but we do have to be mindful of the balance between any government’s policies and their actual impact on the world of commerce and business.

There’s the question of balancing the policy against the timeframe in which it will deliver any real benefits for a start. It always takes time.

The links between business and education are another delicate and important balancing act. ‘Bridging the Gap’ is our specific campaign to address that issue, and The Chamber is playing a vital role.

When it comes to Government we need to address the balance between the much vaunted ‘northern powerhouse’ and the potential of West Norfolk. We must not be overlooked and for that we need – balance.

Balancing the ‘gender gap’ is getting easier, but there’s still a way to go. It’s crucial that girls and young women are encouraged into sectors that, often for historical reasons, are male dominated. It’s equally important that there is  awareness, for both genders, about the opportunities across the age range here in West Norfolk.

And then there’s exporting. The international political landscape is volatile, but there are world markets open for business and they’re looking for the goods and services we generate in West Norfolk. Businesses can find support to help them in this vital area from organisations like The Chamber.

So, there are issues to be weighed up whichever way you look. It seems in fact that, as I guess we all knew, running a successful business is very largely a balancing act. We all need to find the right balance, and tip it in favour of West Norfolk’s businesses.

Adam Marshall, Executive Director of Policy and External Affairs at the British Chambers of Commerce, recently commented on the fact that now our recently elected, Government is enacting some of the policies that formed part of their manifesto. His point was that there can be a gap between a government’s policies and their political agenda. Without wandering into the dangerous waters of party politics it is interesting to think about the gap that exists between government’s policies and the world of business and commerce.

For example there’s the time lapse between implementing a policy and businesses seeing any positive or negative results from it. Nothing is instant.

In fact the concept of ‘gaps’ is very much in the Chamber’s mind at the moment with our specific campaign of ‘Bridging the Gap’ in place to deal with the links between business and education. Filling the ‘skills gap’ is something that businesses have identified and seek Government backing for. Ideally it’s a ‘virtuous circle’ of commerce and Westminster working together to plan for the future and the greater good of young people, and the economy as a whole. There needs to be a greater understanding between the world of work and the world which schools have to live in, to really bridge the gap between business and education. The Chamber has a core role in achieving this.

But what about some other ‘gaps’? The first that springs to mind is the rift between the focus and exposure given to the North – and its ‘powerhouse’ label – and our region here in the east. We have enormous potential here, fuelled by world class companies who design, make  and create service and products for domestic consumption and export. We must not let our profile reduce as others’ gain more awareness.

The ‘gender gap’, is another vital issue that, despite enormous progress, still needs constant attention.

It’s important that girls and young women should be encouraged into  jobs and sectors which are currently male dominated often for historical reason, but it is as important that there is a greater understanding across both genders about the opportunities open them not just for young people but across the age ranges here in Norfolk. 

I mentioned exporting, and returning to it in more detail there’s another possible crack, that needs to be reduced.  The international political landscape is volatile and there are real tensions across the globe. However there are many world markets open for business and looking for the goods and services we provide here in Norfolk which will assist our local business to grow and create more jobs.  Businesses need to be aware of the issues but they will normally find a way to market with the support from organizations like the Chamber. .

Whatever you’re planning, wherever you’re trading and whatever policies are in place – ‘Mind the Gaps’ and let’s work together to close some of them effecting Norfolk businesses. 

Last week’s Budget stated that ‘the UK is one of the most open economies in the world, with significant trade and financial links with other countries’. Whilst a weak European economy has led to subdued export growth to EU countries, other countries are picking up the mantle with a 24% increase in export volume to non-EU countries since 2010. This performance is reflected in the fact that the 3 month trade deficit (to Jan 15) was the lowest since October 2000 (at £4.4bn)

The Office of Budget Responsibility is upbeat too, forecasting exports growth of 3.9% in 2015, 4.0% in 2016 and growth of over 4.0% over the remainder of the forecast. 

Turning to the investment for exporters, the Chancellor also revealed:

A £3.5m in 2015-16 for series of trade missions focused on the North A doubling of funding to £7.5M in 2015-16 for UKTI activities in China A £1.5m in 2015-16 for International Festival for Business in Liverpool, including attracting Foreign Direct Investment

It is good to see more resource put in place to boost Britain’s burgeoning exports into the Chinese market, and to fund additional trade missions, which help many companies get into markets for the first time. However additional resource is needed to support the smaller businesses looking to start trading internationally for the first time or looking to enter new markets.

The support the Government is giving Overseas Chambers as part of the Overseas Business Network Initiative (OBNI) has been very welcome but there is still more that needs to be done.  Norfolk Chamber is making valuable links with many of these new markets in order to supports its membership take that first step into international trade or new markets with confidence .

Networking groups are numerous nowadays. It’s vital activity, helping companies to do business with each other.

It’s healthy, but it’s competitive. There will be more businesses than yours trying to sell to that new contact you’ve just made. It’s business.

Sometimes though we need to think about West Norfolk’s businesses within the context of their having common aims. The times when we need to leave the competitive pitches at the door and pitch in together.

I hardly need to remind you that road and rail connections with our region are a consistently hot topic. Everywhere seems to get sorted before us. Some great strides have been made of course. The A11, and the A47, coming into focus at last although we were disappointed that the Dereham to Kings Lynn stretch of the A47 was ignored. More work to do to make our case.

It’s important to note that much of what has been achieved to date, and much of what we’ll need in the future for our infrastructure has, and will, only come about when commerce joins forces to speak up for our needs. Improved mobile and mroadband are very much needed and for superfast broadband to actually mean superfast!

Let’s turn to our rail links. Customers, and consumer groups have their say. But dissatisfaction, informed opinion and the spelling out of what  West Norfolk actually needs to deliver growth are better heard when they are amplified through the concerted voice of companies working together.

Infrastructure aside, our future prosperity is in the hands of our young people. The cooperation of our businesses, and their talking to each other, is essential in securing better apprenticeship and training schemes for those who represent tomorrow.

Working together we can achieve great things. As political power shifts over time, and priorities alter, our needs as a region should not move down altered agendas. Maintaining a high profile for West Norfolk and ensuring things get done, are better achieved when our businesses pull together, and speak with one voice. And that’s quite a voice when it comes from the ranks of world class businesses we have here.

So, let’s remember that sometimes, despite its being necessary for growth, competition must be reassessed. Sometimes it’s better for companies not to compete with each other, but to join forces to compete for West Norfolk.

‘Look at Norfolk. See Success’ is the message we have conveyed in 2014. It’s time to celebrate, and build on, our increased visibility.

The end of a year is inevitably a time for reflection on both what’s happened in the previous twelve months, and what’s planned or hoped for in the next.  It’s seldom been more appropriate for Norfolk to consider those issues than right now, as we look towards 2015.

This year saw the county become more visible on the political agenda. The Norfolk Chamber of Commerce was influential in securing audiences with key politicians, at national level, and giving the region the opportunity to have its business voice heard.  Chukka Umunna, George Osborne, Vince Cable and David Cameron all came here at the Chamber’s direct invitation, and their primary reason for doing so was to hear what our members have to say, and see what we have to offer. Note the letter below of thanks from David Cameron. Just as importantly it was an opportunity to inform them what we need to realise the county’s demonstrable potential.

It’s potential that will be made deliverable with better infrastructure. Five years ago the A47 and A11 struggled to get on to the government’s agenda. Now they know that the A11 is vital for the growth of the local economy, and improvements to it could deliver over £600 million in economic benefits. What’s more, the work on the A11 is complete and the cones will disappear tomorrow.

Norfolk Chamber members from start-ups to large scale organisations, together with the rest of the business community, the LEPs and our MPs have been very successful in highlighting the business case for improvements to the A47. The message was that improvements along this route will open up opportunities for Norfolk businesses to deliver more economic growth, housing and jobs for our county.  The result of our being seen and heard is that the Prime Minister has pledged that the Government will commit £300million for work along the A47 route but we do need to continue to lobby for the dualling of the Acle Straight and the all-important Dereham, Swaffham, King’s Lynn corridor. We’ve shown that we’re on the road to success and we need to build on this success.

The rail links are as vital as the roads, and again the Norfolk Chamber business community has been successful in bringing its needs into focus. Improvements put forward by the Great Eastern Main Line Campaign will boost our ambition to be a mobile and accessible economy. Our voices were heard and, follliwng the commitment to a rail Taskforce by the chancellor at a Chamber event last November, in this year’s  Autumn Statement we have a commitment from Government to ensure that ‘Norwich in 90’ becomes a reality. The signals are set at go.

The poor strength of of our mobile and broadband signals is firmly on the agenda going forward. The Chamber actively engaging members in surveys, and gathering opinion to inform our dialogue with Government has allowed us to, collectively, make it known that it’s essential for every business in our region to be digitally enabled beyond the minimum on offer. Superfast broadband should actually mean superfast and not what is mainly on offer..

Feedback clearly shows that accessing skilled staff is considered a key concern, and restricts growth. With greater connectivity, and innovative technology expanding the economy comes the need for additional employment and the challenge for businesses to find people of all ages with the right skills.  There has been a great step forward with the development of apprenticeships but the business links with schools still has a long way to go to ensure that our young people understand the world of work and which careers are open to them. Westminster must understand of our needs and help us to encourage school to work closer with business.  

Central to all of this increased visibility for Norfolk has been the business voice. Working with our members, our MPs, the educational establishment, businesses and our partners we have made 2014 a vital and firm rung in the ladder to our success as a region. We have proved that the business voice counts.  Government has heard us. They’ve seen that looking at Norfolk means seeing success. And we can and must celebrate that. Please ensure that you do book onto our next MPs event to ensure we get a really loud Norfolk business voice on the 6 February, 2015.

To climb to the next rung is the work for 2015. We’ve shown what we can offer. We’ve successfully made our case for the tools we need to deliver it. We must now, with the same collective and cohesive determination, ensure that the promises are kept, and that we get on with the job and build on what has been put on the table.

Now that we have a focus, and are clearly in focus, we can be sure that when commerce and government look at Norfolk, they see success!

It’s never been easier, or quicker, to communicate with one another than it is right now. We have more means of talking and sending messages than we ever dreamed of. Apart from being able to stay in touch while we’re on the move, we have entirely new forums in which to convey our thoughts and ideas. The social media have become business tools.

No forward thinking business is going to ignore or underestimate the opportunities that communications and information technology have created for us. And yet, ultimately, is there any more important form of dialogue than the face to face meeting?

There’s probably never been a more important time to engage with our customers, in real time, and face to face. Statistics and surveys vary but there can be little doubt that we are emerging into a post-recession economy. On the face of it that’s good news, but it’s the companies who sit back and wait for something to happen who will flounder. It’s the ones who seize the opportunities who will succeed.

Within our region the opportunities are vast. We have innovative, creative and forward thinking companies delivering new ideas, products and services as never before. In a vibrant and growing economy they need to be ‘out there’ selling their wares to new and existing customers.

From a purchaser’s point of view it means there are new things to see, new concepts to explore and potential new benefits to bring to their own businesses.  

All of that exciting interaction happens best when people meet face to face, to buy and sell. Doing better business comes from demonstrating what you’re offering, conveying your ideas with a passion and proving that you’re ready, willing and able to put yourself in front of your customer. Even in a world where online shopping has become an everyday fact, retail would die if purchases weren’t made over the counter every day. In the B2B world, where technology can enhance your customer service and raise your profile, your customer base will eventually dwindle if you don’t get out to see them.

It’s the importance of meeting customers and suppliers face to face that drives The Chamber’s B2B events. The next Business 2 Business Exhibition, on October 15th, comes precisely at this crucial period in the region’s economic recovery.

We know that the reason it’s already heavily subscribed is that the region’s businesses are feeling more confident. They’re gearing up for the drive towards a more optimistic and positive time. The ones who are most fleet of foot, and most likely to succeed are the ones who want to get in front of potential customers, see new ideas, and do better business.

And let’s face it, when the deal is done the best, and most time honoured way to seal it is still to shake hands. And you can only do that when you’re face to face!