The British Chambers of Commerce Quarterly Economic Survey (QES) is the largest private sector survey of businesses in the UK, and it is a leading indicator of UK GDP growth.
Against a backdrop of a slowing global economy, escalating Brexit uncertainty, and rises in business costs as the UK enters a new tax year, the latest results from the survey of over 7,000 businesses, including those in Norfolk – all collectively employing around one million people – reflect a deterioration in many gauges of the UK’s economic strength.
Now in the second Quarter of 2019, with the outcome of Brexit still hanging in the balance – we need to understand how Norfolk businesses are reacting to the current economic climate. Today (Monday 20 May 2019) is the first day of the fieldwork period for the Q2 Quarterly Economic Survey (QES).
The QES is the largest independent business survey in the UK and is used by both the Bank of England and the Chancellor of the Exchequer to plan the future of the UK economy. It is also closely watched by the International Monetary Fund. It is vital that as many Norfolk businesses as possible take part, so we get a true reflection of the local economy.
It takes less than 3 minutes. The completion deadline for this survey is midnight on Monday 10 June 2019. The Q2 results will be published week commencing 01 July 2019.
Key findings from Q1 2019:
Norfolk Manufacturing sector:
The balance of firms reporting increased domestic sales rose from 0 to +26, while those reporting improved domestic orders also rose from +0 to +41
The balance of firms reporting improved export sales fell from +43 to +31, and the balance of firms reporting improved export orders rose very slightly from +43 to +46
The balance of firms reporting improved cashflow remained weak, but rose from +21 to +26
The percentage of firms attempting to recruit fell from 74% to 57%, the weakest since Q4 2012. Of those, 92% reported recruitment difficulties, close to its record high
The balance of firms increasing investment in plant/machinery rose in the quarter from +16 to +18, while investment in training fell from +42 and +23
The balance of firms confident that turnover and profitability will increase in the next 12 months was mixed – falling from +32 to +30 for turnover and rising from +11 to +23 for profitability
Norfolk Services sector:
The balance of firms reporting increased domestic sales fell from +21 to +9, the weakest since Q3 2016. Those reporting improved domestic orders fell from +15 to -2
The balance of firms reporting improved export sales, whilst still weak, reported an increase from -5 to +4 and export orders rose from -9 to +7
The balance of firms reporting improved cashflow dropped in negative territory – falling from +8 to -10
The percentage of firms looking to recruit fell to 53%. Of those, 79% had recruitment difficulties – a little higher than the previous quarter
The balance of firms looking to increase investment in plant and machinery fell from +9 to +6 (weakest since Q4 2016), and from +20 to +16 in training
The balance of firms confident that turnover will improve over the next year remained static, whilst those who thought profitability would improve dropped from +24 to +14
Norfolk Chambers of Commerce have partnered with regional accountancy and law firms Price Bailey LLP and Ashtons Legal to deliver a new member service, which will give Norfolk businesses an alternative cost-effective way of resolving business disputes. This is being done through the multi-award winning Escalate dispute resolution service.
Many SMEs leave legal and financial disputes unresolved because they fear the potential cost involved without a guaranteed positive outcome. Escalate can help remove these barriers. The most tangible key benefit of the service is that it carries no financial risk to the client. A business which pursues a dispute in this way will only pay a fee if a successful settlement is achieved. This is great news for small and medium size companies, and will empower them to challenge, in particular, larger businesses in a way that they might otherwise not have done.
This service is being rolled out nationally, with East Anglia being one of the first regions to benefit. We are excited to be able to be able to be early adopters of the service and to introduce it to Chambers’ members as another key area of business support. Price Bailey LLP and Ashtons Legal both have long-established reputations and credibility in this area so harnessing their expertise to help our members in this cost-effective way is a very positive move.
Matt Howard, Insolvency and Recovery Partner at Price Bailey LLP, instigated the partnership between all the parties and Escalate, said:
“Resolving a commercial dispute has historically been time consuming, costly and risky for claimants, which is why many of them decide to reluctantly write-off what they’re owed. Escalate has helped to put that right. By removing financial risk, providing transparency on process and pricing, and ensuring that the claimant remains the main beneficiary on settlement, Escalate provides an opportunity to resolve disputes in a way that helps rather than hinders businesses cash flow. Our partnership with the Norfolk Chambers of Commerce means we are able to give more SMEs in East Anglia access to justice and provide an innovative means of securing the resources they need to survive and grow. Escalate has proven to make a real difference for our clients and has won a handful of national awards as a result.”
Also commenting on the new partnership, Tom Bailey, Partner at Ashtons Legal said:
“Escalate’s mission is to help the SME community so that the £40 billion that’s written off each year as bad debt is reduced. In our view, a bad debt is just a commercial dispute that didn’t get resolved. Escalate is already helping SMEs to recover more than £50 million that is currently locked up in commercial disputes. The combination of the Norfolk Chambers of Commerce, Price Bailey and Ashtons Legal is a game-changing proposition to help members in the region with their cashflow and avoid some of the inevitable bumps in the road that SME’s experience.”
To celebrate this new member service and to provide more information, a free launch seminar will be held on Thursday 20 June 2019 from 3.30pm – 5pm at the offices of Price Bailey LLP in Norwich.
If you’d come to visit us at the Chamber last week you would have seen us peering out the window nervously at the weather, crossing everything that Friday would be fine. Luckily it got to Friday morning and there was beautiful sunshine encouraging all our delegates at the biker breakfast to come on their bikes.
Boudicca Hotel had very kindly given us the whole marquee area which meant that delegates arriving on their bikes, over 30 of whom did, could park them right outside and spend some of the morning admiring them. Everyone was in a great mood, something that was definitely helped by the presence of bacon sandwiches and pastries! We had three fantastic speakers covering how to keep yourself as a biker and your business safe and the various courses available.
Chris Spinks, CEO of Westcotec who partnered with us to deliver the morning, introduced our first speaker Iain Temperton. Iain highlighted to the group the importance of keeping your business safe when sending employees out on errands and how to make sure that if anything happens your business is protected. Bacon rolls were then brought round to every table with pastries which everyone thoroughly enjoyed. Next up was Andy Micklethwaite who outlined a number of course options available, such as Safe Rider, to delegates to improve their riding and by extension keep themselves safe. Finally we heard from Barry Clarke who highlighted the Biker Down course he runs and the different modules it covers, not just how to keep yourself as a rider safe but also what to do if you find someone who has had an accident.
Everyone had a great morning and a small group continued the fun with a ride out to Norfolk dealers Seastar Superbikes, Norfolk Triumph (Lings), Lind Motorrad, and CJ Ball. Seastar Superbikes had very kindly lent us two showpiece bikes that delegates could admire as they walked into the marquee and we even had a Zero Electric Bike on charge just inside. It was great to see so many different bikes of all shapes and sizes there and our very own Jordan even had her first go on the back of a bike, which she thoroughly enjoyed!
The feedback on the morning was fantastic and we’re hoping to run it as an annual event so will begin brainstorming ideas soon… watch this space!
ITV is looking for a business that feels strongly about the growing debate over companies such as Google paying little tax. This is for a News at 10 feature on Wednesday 10 February, ahead of Google and HMRC appearing before the Public Accounts Committee hearing on Thursday 11 February.
If you are comfortable speaking about this issue please get in touch with Allan Williams, Senior Press & Communications Manager at the British Chambers of Commerce. 020 7654 5812a.williams@britishchambers.org.uk
Wellton Energy Limited is a newly formed sales and marketing outsourcing company that has over forty years combined experience within this sector. With experience and knowledge of a wide range of industries, the company has grown rapidly in the first 10 months of trading. The company currently employees 5 members of staff.
Director Andy McDowell said “We don’t concentrate on the big energy companies and brands. Our key objective is to offer our industry expertise to help small / medium sized businesses grow within the market, to enable them to develop and compete with larger companies. We also aim to help start up companies to enable them to get a good footing in the market.”
Mr McDowell continued “We have been trading successfully within Europe since our initiation, concentrating on the major energy generating regions. Initially our customer base was within the Middle East and South East Asia, however we are now working closely with several companies situated within the UK and Europe.”
As a growing business itself, Wellton Energy needs premises to accommodate the increasing size of the business. “We have moved premises a few times to meet the demands of the business and as our business grows, we will need a larger building, but currently, our building in Henderson Business Park is sufficient for our needs.”
One of the main challenges that companies face as identified in a recent Chamber survey is employing and managing their staff. Andy McDowell does not feel that they have a problem with the recruitment and management of staff. “When recruiting and training, we take into consideration the age and experience of our new staff and allocate our training and mentoring time around this,” says Andy. “Younger, less experienced staff receives more of our time to make sure that they are ready for independent work. It’s all about taking the right approach.”
Much has changed since the Great Eastern Mainline Campaign business case was published in 2014: the new franchise is well underway with the imminent arrival of our new trains providing additional capacity; Greater Anglia is developing a new timetable; Local Authorities have updated their local plans; and Local Enterprise Partnerships have published revised economic growth strategies. There has also been changes in the way rail investment is allocated by Government.
To determine how this delivers against the ambitions of the Taskforce, New Anglia LEP are undertaking a refresh of the evidence base to identify what the investment priorities are for the Great Eastern Mainline and when these need to be delivered to fully realise the full potential of our region.
This free to attend rail conference provides an ideal opportunity to bring you up to speed with this work and how you can help support their renewed case for investment.
With key speakers, including MPs, businesses and the franchise operator Greater Anglia – this really is an opportunity to help shape our future direction and ensure that our campaign continues to achieve the outcomes that passengers and our economy need and deserve.
Thank you for your continued support and encouragement as we work together to continue the transformation of our railway.
More UK exporters are reporting a decrease in orders in the opening quarter of the year, with cashflow and confidence dipping too according to the latest Quarterly International Trade Outlook from the British Chambers of Commerce, in partnership with DHL.
The report based on the responses of over 3,400 exporters, including those from Norfolk shows that one in five manufacturers (23%) and service firms (20%) saw their export order books decline in the first three months of the year – the highest for both since Q2 2017 when records began.
Two-thirds of exporting manufacturers said exchange rates were of greater concern to them than in the previous three months, reflecting sterling volatility ahead of the original Brexit deadline. Exporters continue to report considerable price pressures, which for manufacturers is mainly driven by the cost of raw materials.
According to the findings, exporters are reporting muted confidence in turnover in the coming year. Nearly a quarter of exporters reported a decrease in cashflow, a key indicator of the financial health of a business – also at its highest level since Q2 2017.
The BCC/DHL Trade Confidence Index, which measures the volume of trade documents issued by Accredited Chambers of Commerce for goods shipments outside the EU stood at 124.04, representing a fall of 1% on the quarter and 2.3% lower than the same quarter in 2018.
The results of the report paint a picture of tough trading conditions, and while the prospect of immediate changes to conditions due to Brexit have been postponed, fundamental questions about the future business environment remain unanswered. Clarity is also needed about the terms of trade exporters will face in many key markets around the world after the UK leaves the EU.
Nova Fairbank, Head of Policy for Norfolk Chambers of Commerce said:
“It’s been a trying time for many Norfolk exporters with uncertainty in the run up to the Brexit deadlines and continued trade tensions combining to flatten orders and confidence.
“The future relationship with Europe remains unresolved, but so too do the future terms of trade with many other important trading partners. Until the status of free trade agreements with third countries are clarified, Norfolk firms don’t know how their operations in all corners of the world will be affected when the UK leaves the EU in any transition period and beyond.
“Norfolk businesses are resilient, but they urgently need Parliament to overcome the current impasse and end the uncertainty. Leaving firms in limbo and allowing the political dramas to play out again at the last minute in October will only serve to diminish sales and confidence further.”
Shannon Diett, VP of Marketing at DHL Express, said:
“This quarter’s report shows a small decline in the Trade Confidence Index of 1.02% on the previous quarter and 2.03% on Q1 2018, alongside a decline in export orders, cash flow and a fall in confidence regarding future exports. This paints a fairly bleak picture when the results are taken in isolation, however we’re all aware that uncertainty surrounding the Brexit negotiations was at its peak in Q1 2019.
“These results highlight how critical it is for businesses trading internationally to have information and clarity in advance of the 31 October deadline.
“Every day we witness the drive and creativity of UK businesses who prevail whatever the circumstances, and more than this, seize every opportunity for growth and global expansion. Exporting internationally can be challenging, but the rewards are clear, with those businesses exporting to a high number of countries outperforming the market. The UK has so many strong and inspirational companies that are succeeding and we must ensure that their growth is supported.”
Key findings from the report:
23% of exporting manufacturers and 20% of exporting service firms saw a decrease in exports orders in the first three months of the year, up from 18% and 16% respectively in the previous quarter
Nearly a quarter of exporters reported a decrease in cashflow, 24% in manufacturing and 23% in services say it had decreased in the previous three months
Confidence in turnover also dipped, with 22% of exporting manufacturers expecting it to worsen in the coming year (up from 14% in the previous quarter) and 18% in services (up from 13%)
Two-thirds of exporting manufacturers (66%) and nearly a half (47%) of exporting service firms are more concerned about exchange rates than in the previous quarter
Half (49%) of exporting manufacturers expect to increase prices, unchanged from the previous quarter, and 42% of service firms (up from 39%). The cost of raw materials remains the primary cause of cost pressure (79%) for manufacturing firms
The percentage of exporters attempting to recruit fell in both sectors, from 68% to 63% in manufacturing and from 57% to 51% in services. The percentage reporting recruitment difficulties remained very high: 79% in manufacturing and 72% in services
The BCC/DHL Trade Confidence Index, a measure of the volume of trade documentation issued nationally, fell by 1.02% on the quarter and 2.03% compared to Q1 2018.
At First Class First Aid, I’m passionate about equipping people with the skills and confidence to step in and make a difference when it matters most. That’s why we’re excited to announce that we’re now offering Mental Health First Aid training, helping people to recognise the signs of poor mental health and offer meaningful support, just like I already do with physical first aid.
I’ve teamed up with the brilliant team at Transpire Training, who specialise in delivering accredited Mental Health First Aid England (MHFA) courses. Through this partnership, we’re now able to offer a two-day Mental Health First Aid training course to individuals and workplaces across Norfolk and beyond.
We don’t know about you but we at the Norfolk Chamber of Commerce are certainly big fans of the chocolate that Gnaw creates, so were absolutely delighted to have Matt Legon, Managing Director, with us for the morning.
Matt gave a very relaxed and engaging presentation (used in the loosest sense of the word) to eighty delegates at our Norwich Business Breakfast last Thursday. He and his wife started the business in Norwich in 2011 after realising there was a very real gap in the market for lovingly crafted chocolate with a fun side! The room certainly enjoyed hearing all about the ups and downs, one of the ups being winning the British Chambers of Commerce Small Business of the Year in 2018. Matt attributes much of their success to having a great product and facing the fear that many small business shy away from… exporting.
An anticipated 80% of Gnaw’s turnover for this year will come from export markets, which really highlighted to the room that doing the scary and sometimes more difficult thing is absolutely worth it. Plus, it means that Matt gets to travel around, something he loves to do! It was genuinely lovely to hear how Matt speaks about his team and the fact that he appreciates the company would be a very different place without them.
We certainly left feeling as though we were ready to tackle the world and take those scary steps others are too afraid to take. We’re sure you’ll agree that Gnaw has struck the right balance of keeping its Gnaw-folk identity while not being afraid to take on big markets, something to really be proud of.
Our featured charity for the morning was Nansa, an absolutely fantastic local charity that focuses on providing “there for life” support to people with a range of disabilities across Norfolk. The charity has been going for over 60 years and their new Chief Executive, Tom Garrod, really welcomes all types of support so if you’d like to know more definitely get in touch at fundraising@nansa.org.uk.
The Virgin Money Norwich Lounge is delighted to open its doors for the day to offer you somewhere different to work. Thursday 6 June is National Coworking Day – a day designed to encourage like-minded entrepreneurs and SMEs to get together.
We’ll also give you a 6 day pass to come back another time so you can experience our Lounges again.
Coworking is proven to facilitate connection, collaboration, and innovation. National Coworking Day is a collaborative doors open day of coworking spaces across the UK, allowing companies and individuals to experience this for free across the country.
You can find out more and book your space in our Norwich Lounge by popping in or calling us on 01603-610538 – we look forward to seeing you then!
Norwich: National Coworking Day 2019 6 June @ 9:00 am – 5:00 pm Free
The Norwich Society celebrates Norwich’s unique character and beauty, helps preserve its heritage and contributes to shaping its future. We are seeking to develop closer links with businesses in Norwich in order to better inform our strategic thinking on the city’s future. Business and commerce has given the city its heritage and unique character – together we can work to leave a richer inheritance for future generations. We are seeking views on our Business Membership Scheme and how we can better engage with local businesses. Our questionnaire should only take a few minutes and we would really value your participation. https://forms.gle/asfXqU8DAjcCD73g6 For more information about our activities check out our website www.thenorwichsociety.org.uk