Chamber News

The British Chambers of Commerce, in partnership with DHL, today (Friday) publishes its latest Quarterly International Trade Outlook, based on survey and documentation data from UK exporters. The Outlook shows exporters are being hampered by widespread labour shortages, particularly in manufacturing, where two-thirds of firms struggled to recruit in the first quarter of 2018.

Both sectors are being severely hampered by the prevalence of skills shortages. Of those recruiting, 66% of manufacturers and 57% of services exporters are struggling to find the right staff, according to the survey of over 3,300 exporters. In the manufacturing sector, the greatest difficulty was in finding skilled manual and technical labour (66%) and in the services sector, it was professional and managerial level positions (53%).

Addressing the growing skills gap is a joint responsibility for business, government and the education sector. Companies themselves must do more to invest in training, but to do that they need to be confident that the apprenticeship and training system is fit for purpose – particularly with regard to the apprenticeship levy and the implementation of new frameworks, where businesses have raised significant issues to government in recent months.

The continued lack of clarity over future immigration rules – and business access to skills from overseas – is also a key issue where urgent action is required.

The survey also shows that in the manufacturing sector, growth in export sales and orders remain stable, while they slowed slightly for the services sector in the first quarter of 2018.

Elsewhere, the BCC/DHL Trade Confidence Index, which measures the volume of trade documents issued by accredited Chambers of Commerce for goods shipments, increased by 2.24% on the quarter, and stands at the second highest level on record.

Key findings from the report:

• 68% of exporting manufacturers and 53% of services had attempted to recruit in the last three months, of those, nearly two-thirds reported difficulty finding staff (66% and 57% respectively) • 42% of exporting manufacturers and 28% of exporting service firms reported increased export sales in Q1. 42% of exporting manufacturers and 25% of exporting service firms reported increased export orders • 45% of exporting manufacturers expect their prices to rise. Of these firms, 82% cited raw materials as a cost pressure. 37% of services expect prices to rise • 56% of exporting manufacturers cite exchange rates as a concern to their business (compared to 66% in the previous quarter), and 42% in the services sector (down from 47%) • The BCC/DHL Trade Confidence Index, a measure of the volume of trade documentation issued nationally, rose by 2.24% on the quarter. The Index now stands at 126.82 – the second highest level since records began in 2004.

Commenting on the findings, Julie Austin, International Trade Manager of the Norfolk Chamber of Commerce, said:

“At a time of significant uncertainty and change, it’s pleasing to be able to report that many UK exporters are doing well. Yet many tell us that their future prospects are being constrained because it’s becoming harder and harder to recruit the people they need to grow.

“Businesses with global ambitions are facing critical skills gaps at just about every level. The combination of decades of constant change in the training system, declines in immigration, and tight local labour markets are stopping many firms from making key investments. A stable training system, a reformed apprenticeship levy, answers to practical questions around Brexit and clarity on the UK’s future immigration regime are urgently needed. Get these right, and exporters all across the UK will take risks, invest and grow.

“Price pressures continue to weigh on business, with manufacturers particularly feeling the pinch from costs at the factory gate. While the fall in the pound has provided a boost for some exporters, it’s been a drag for others, who report rising costs for inputs and components. While politicians exhort firms to do their purchasing closer to home, our evidence suggests that for many firms, import substitution isn’t currently a viable option – as many companies simply can’t find or afford the inputs they need on the UK market.”

Ian Wilson, CEO DHL Express UK and Ireland, said:

“The positive Trade Confidence Index, increasing by 2.24% on the previous quarter to be the second highest on record, resonates with the success we’re seeing from UK businesses trading internationally.

“There are of course still many challenges for UK businesses, as this report highlights. The skills shortage is a significant concern, which is why it’s more important than ever to consider your retention strategies and people development programmes. Brexit is also driving considerable uncertainty, and businesses should broaden their portfolio of international markets to spread risk in these changing times. We join the BCC in pushing for decisions to be made to allow UK exporters to continue trading with confidence, as seamlessly as possible.”  

For the full report please click here.

Drivers are being asked to plan ahead in the countdown to the Norwich Dereham Road/Sweet Briar Road roundabout closure next week.

Between Monday 28 May and Friday 1 June, the area will be closed in all directions for five days while resurfacing of the new roundabout and its approaches takes place. Councillor John Fisher, Norfolk County Council Chair of Norwich Highways Agency Committee, says: “Whether you’re commuting or just out and about in Norwich next week during half-term, please take a few minutes to find out more about the closure.

“This is a significant event for the city’s transport network and the decision for a full road closure has not been taken lightly. On balance, this approach represents the quickest, safest and most efficient way to complete the work to the best possible standard. “I’d also like to ask people to help by spreading the word to friends and family. The more informed we are across the city, the better prepared we’ll be to keep the roads moving as well as possible during this time. “We understand that it will be disruptive and frustrating for all those affected and really appreciate everyone’s patience while work takes place.” For full details, including diversion maps and access information, please visit  www.norfolk.gov.uk/derehamroad. This work marks the last phase of the Transport for Norwich project, which is designed to improve journey times for all traffic and increase the roundabout’s capacity for the future.

Thursday’s breakfast got off to a great start with the sun shining, in the beautiful setting of the Norwich Cathedrals’ Hostry. With the theme of the morning being all about the bike, it seemed only right that several of our members and staff choose to dust off their bikes to travel to the breakfast, this also included two of our guest speakers who arrived in style on their ofo bikes. 

Launched in Norwich, October 2017, the ofo bikes have become part of our landscape and even now stretch out into the suburbs too.  No doubt you have seen the bright yellow bikes or even taken a ride on one too. What a great concept which was originally conceived in Beijing, China. You begin your journey by simply downloading the app, find the bike, scan and off you go! ofo has not only revolutionize nationally and internationally commuting time for all the generations, but it also offers everyone a cheap, environmentally friendly, and hassle-free way to travel. 

It was really great to hear about the ofo business journey from Matthew Thomas-Keeping, Regional Operations Manager, and Paul Harding, City Operations Coordinator from ofo. Matthew gave a real insight into the journey of the company and its growth too. Since 2014 when the original company was set up, over 6 billion people have used an ofo bike for their trips. In one day 32 million people across the globe will use an ofo bike, that’s a lot of cycling and on the plus side fewer cars on the road, which is great for the environment. 

With over 100 of our members and some non-members attending too, there was lots of opportunity for Networking and chance to talk to some of the young entrepreneurs from the Norwich School and our business stands included our featured charity Community Sports Foundation, Norfolk County Council’s Pushing Ahead project, Big Fork, St Augustine’s Neighbourhood Forum and East Anglia’s Children’s Hospices. We also heard from Mark Shields, EDP Business editor about the launch of the Norfolk Business awards, which are open for applications https://norfolkbusinessawards.edp24.co.uk/home

The Chambers breakfasts are not just about the coffee and eggs, (although a nice treat). They are focused on building a voice for all our Norfolk Business, the Chamber is here to support and build a strong voice and working relationships for all.

View the event photos.

Don’t miss out on our next Norwich breakfast at Sprowston Manor, or try something new with our evening networking Business & Bowling at The Bowling House! 

In post-Brexit UK, responsibility for investigating unfair practices in international trade will be taken on by a new UK agency.

The Trade Remedies Authority (TRA) will take over the role presently practised by the European Commission.

Confirming that the new agency will be based in reading, the Department for International Trade (DIT) said that its powers are currently being created under the Trade Bill and the Taxation (Cross-Border Trade) Bill, both of which passed their committee stage in Parliament earlier this year.

It will, the DIT confirmed, be set up by the time the UK leaves the EU.

While the UK remains a member of the Union, British companies that believe they are being harmed by unfair trade, such as dumping or by unexpected surges in imports, must ask the European Commission to investigate their concerns.

Once the UK has left the EU, however, companies will be able to ask the newly-created TRA to undertake those investigations on their behalf. Where their concerns are found to be justified, they can expect the authority to recommend appropriate action, such as imposing tariffs on goods entering the UK.

The DIT says it will provide details on the exact location and staffing of the TRA in due course.

In the first quarter of 2018, what growth we saw in the Norfolk economy was due principally to strong global trading conditions, rather than domestic demand, which remained muted. Uncertainty, recruitment difficulties and price pressures remained persistent concerns for businesses of every shape and size, even if short-term confidence levels remain resilient.  Now we are in the second quarter of 2018 – how are Norfolk businesses reacting to the current economic climate? Today (Monday 21 May 2018) is the first day of the fieldwork period for the Q2 Quarterly Economic Survey (QES).  With the economy appearing to ‘tread water’ in the last quarter and with Brexit still delivering uncertainty, it more important than ever that as many Norfolk businesses as possible complete the survey. 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. You can have your say by completing the QES online NOW It takes less than 3 minutes. The completion deadline for this survey is midnight on Monday 11 June 2018.  The Q2 results will be published week commencing 9 July 2018 Key Norfolk findings in the Q1 2018 survey: Manufacturing sector:

• The balance of firms reporting increased domestic sales fell slightly from +17 to +16, the lowest since Q1 2017, while domestic orders remained still at +23.
• The balance of firms reporting increased export sales stayed the same +31 – the regional and national figures are now in line with the Norfolk results. 
• The percentage of manufacturers that attempted to recruit in the last three months also remained the same at 83%.  
• The percentage balance of manufacturers expecting their prices to increase fell from +54% to +49%.  The price of raw materials continues to be the primary source of price pressures, with 81% reporting it as a cause (in line with the 80% last quarter). 

Services sector:

• Export sales and orders remained unchanged this quarter at +8 and +6 respectively.  However, domestic sales and orders both increased at +19 for sales and +13 for orders.
• The percentage of businesses attempting to recruit fell slightly from +65 to +63. Of those, the percentage of services firms reporting greater recruitment difficulties fell from 83% to 63%. Professional and managerial roles are the leading areas of hiring difficulties (53%)
• The balance of services firms expecting prices to increase, fell from +49% to +44%. But the balance of firms citing pay settlements as a source of price pressures rose from 45% to 47% 
• The balance of firms reporting cash flow improvements remains quite low at +11 (up slightly from +10 in the previous quarter). 

Chamber business leaders from across the United Kingdom have today (Tuesday) written to the Prime Minister calling for a renewed focus on tackling the barriers to growth and investment in the United Kingdom – and a radical plan for action.  

Gathered today in Manchester, Chamber business leaders are calling on the Prime Minister to balance the importance of securing the best possible deal with the EU with the urgent need to set out a compelling vision for UK growth and a bold set of domestic policies to fix the fundamentals at home.

Business communities throughout the UK are concerned about perceived inaction in Westminster and Whitehall on key domestic economic matters – where attention and swift action are needed for the UK to succeed after it leaves the EU.

Writing on behalf of the 53 accredited Chambers of Commerce from every region and nation of the UK, Dr Adam Marshall, Director General of the British Chambers of Commerce (BCC), says:

“Our future success depends not just on Brexit negotiations, but also on the big economic decisions that must be made here in the UK. It is time, Prime Minister, for you to set out a compelling, pro-enterprise and pro-growth vision for the future, and a bold set of domestic policies to make it happen.

“It is time for you to tell business communities across the UK how your government will act – fast – to stabilise the faltering training and apprenticeship system and give clarity on migration rules, as businesses face unprecedented labour and skills shortages all across the country.

“It is time for visible action to rebuild our rutted and potholed roads, to use the resources of the state to build more homes, and to speed up the delivery of airport, rail and energy upgrades.

“It is time to eliminate the significant gaps in mobile and digital connectivity that continue to strangle business productivity and UK competitiveness – the central theme of our ‘No More Not Spots’ campaign.

“It is time to set a new mandate for HMRC and economic regulators to support, rather than pursue and punish, the small and medium-sized firms that can drive future growth, and focus their enforcement activities on the small number of companies pursuing questionable practices that are ultimately paid for by the rest.

“After decades of delay and incremental change, it is time to tackle the huge costs and complexities of the UK tax system, which actively discourage investment, risk-taking, and the stronger export performance we all want to see.

“And it is time for your government to deliver a far more explicit blueprint to support economic growth in all regions and nations – including greater local decision-making, away from the centralising instincts of Westminster and the devolved administrations.

“Prime Minister, the many thousands of firms we collectively represent are clear: business as usual is not good enough at a time of significant uncertainty. A concerted drive to ‘fix the fundamentals’ would unlock business confidence and investment – and set the UK on a path to long-term growth, alongside a comprehensive settlement between the UK and EU.” 

Click here to view the letter sent to Teresa May, Prime Minister.

The first three months (Q1) of 2018 saw the UK’s total trade deficit (goods and services) narrow by £0.7 billion to £6.9 billion.

The shift was mainly due to falling goods imports from countries outside the EU, according to the Office for National Statistics (ONS).

In its latest Statistical Bulletin: UK Trade: March 2018, the ONS reveals that the trade in goods deficit narrowed £1.5 billion with non-EU countries and widened £0.4 billion with the EU Member States in 2018 Q1.

The narrowing goods deficit with non-EU countries was largely due to falls in imports of machinery and transport equipment (mainly ships and aircraft), and miscellaneous manufactures (mostly clothing and works of art) of £1.3 billion and £0.5 billion respectively over the quarter.

According to the ONS, the fall in imports of goods from non-EU countries was due to declining volumes as import prices rose in the three months to March 2018.

Over the longer period of 12 months to March 2018, the total trade deficit narrowed £13.3 billion to £26.6 billion. That was due, the ONS explains, to export growth of 9.2% exceeding a rise in imports of 6.4%.

During that same 12-month period, the UK’s trade in goods deficit with the EU narrowed £2.9 billion, while with non-EU countries it widened by £0.7 billion.

The positive export figures were welcomed by International Trade Secretary, Liam Fox, who pointed out that the falling trade deficit will help households across the UK feel the benefits of a stronger economy.

“It is clear evidence,” he said, “that the world wants to buy high-quality UK goods and services, and my department is putting the country in a position to benefit.”

Speaking during a visit to Scotland, Mr Fox also highlighted a 21% rise in exports of Scotch Whisky, which are now worth £4.4 billion.

Norfolk Chamber HR Forums are designed to inform your business of all the changes and developments in employment law. This special two-part session on 20 June, delivered by expert speakers from Howes Percival, Nicola Butterworth and James Mee will Focus on flexible working requests and settlement agreements. Part 1 Employers are increasingly facing requests for flexible working from their employees.  A hasty decision about flexible working can, in certain instances, lead to claims for discrimination, detriment, and/or unfair dismissal. In this practical and comprehensive HR Forum, Associate Solicitor, Nicola Butterworth will explore a range of issues that can arise when dealing with flexible working requests and provide tips on how best to approach such requests and protect the business from facing potential claims.  Part 2 Estates and Trusts Practitioner, James Mee will focus on the legal and practical issues surrounding settlement agreements, including strategies for negotiation and key changes to the tax treatment of termination payments. Keeping up with recent HR and legal updates is crucial for anyone in business. Suitable for: • HR specialists • Employment relations specialists • Employee representatives • MDs/CEOs • Owners of small and medium sized businesses

To find out more or book your place click here

Testimonials “I really enjoy the forums and learn a lot from them.” – Linda Holt, Blue Sky Professional Development “Really useful; they take a difficult subject and explain them clearly” – Rachel Harrison, The Forum Trust

With sanctions very much in the news at the moment in the context of the Iran nuclear deal, the Office of Financial Sanctions Implementation (OFSI) has produced a timely factsheet offering information and advice in relation to arms embargoes, trade sanctions and financial sanctions.

Having to comply with the various types of sanctions imposed by the UN, the EU, the UK and others can be difficult for both importers and exporters, OFSI agrees.

To help affected businesses, the 11-page question-and-answer style guide (which can be found at assets.publishing.service.gov.uk) aims to answer questions relevant to those involved in importing and exporting goods and services, especially in areas where financial sanctions are in force.

The publication addresses general questions about financial sanctions, such as “Should I consider financial sanctions when importing to or exporting from the UK?”.

Not surprisingly, the answer is “yes”, with the advice being to consider not only who and where the goods or services are coming from or going to, but also who is shipping them (is a sanctioned vessel being used?), and whether a designated person is subject to financial sanctions even though they are located outside the country in which your business is operating.

In relation to licensing, the guide considers whether an OFSI licence is required if a business already has an export or trade control licence (the short answer is “you may do”), and what OFSI licensing grounds might apply to importers and exporters.

Questions about financial sanctions along the export chain are also considered, including “Do financial sanctions apply to import and export agents?”. With agents such as couriers, express operators and freight forwarders being responsible for their own due diligence, the answer is again “yes”.

Finally, financial sanctions breaches and penalties are covered and there is also a section on sources of further information.

Find out more about sanctions, embargoes and restrictions here. 

The British Chambers of Commerce, together with the accredited Chamber Network, including Norfolk Chamber, run Britain’s largest and most influential private business survey – the Quarterly Economic Survey (QES).  The next fieldwork period for the QES will start on Monday 21 May 2018 and will be open for 3 weeks. 

But why should your organisation take part?  Nova Fairbank, Norfolk Chamber’s Public Affairs Manager outlines why she wants more input from Norfolk businesses:

“The QES is Britain’s largest, and longest-running, private business survey and it’s a leading economic indicator – often picking up big changes in the economy long before other surveys or official statistics.  With the uncertainty of Brexit and the UK economy effectively treading water at present, it is more important than ever that as many businesses as possible take part. 

“By completing the QES you are helping to identify how strong our local economy is and how well it is performing against the national averages. Norfolk has many dynamic and innovative businesses, we need to have a strong voice and ensure our region gets the credit and investment that it deserves.”

Below are just a few more reasons why your organisation should take part in this important economic survey:

1. It’s provided consistent data since 1989, and regularly receives over 7,500 business responses. Compare that to the average business survey, which garners only a few hundred responses.

1. Norfolk responses represent over 34% of the responses from the East of England.  (East of England includes: Norfolk, Suffolk, Cambridgeshire, Essex, Hertfordshire and Bedfordshire).

1. The Bank of England’s Monetary Policy Committee uses the QES as one of its key benchmarks when setting interest rates.

1. HM Treasury and the independent Office for Budget Responsibility use the QES to put together their forecasts for the UK’s economic performance.

1. The Organisation for Economic Cooperation and Development (OECD) and the International Monetary Fund (IMF) use the QES when comparing the UK to competitors worldwide.

The more Norfolk businesses that take part – the louder the voice of the Norfolk business community will be. 

Details of the previous QES results from Q1 2018 can be found under Policy on the Chamber News section of the Chamber website. 

So what can your business do to contribute to the QES?  During the fieldwork period, the survey can be completed electronically.  There are several ways to access this online survey either:

• Use the link within the Chamber Policy news article or;
• Use the link that the Chamber can send direct to you

To be added to the Chamber’s QES email list, please contact Nova Fairbank or Jack Edwards.  Emails: nova.fairbank@norfolkchamber.co.uk and jack.edwards@norfolkchamber.co.uk.

The online survey takes less than 3 minutes and your input is vital to help ensure that Norfolk business has a strong collective ‘voice’.

Mental health awareness week (14th-20th May) has put employee wellbeing at the forefront of all organisations agendas. Norfolk Chamber are pleased to announce that we are continuing this focus at our next Great Yarmouth Business Breakfast on Thursday 21 June at Great Yarmouth Town Hall. The average person now sits for roughly 10 hours a day, this sedentary lifestyle plays a big part in contributing towards the UK’s obesity epidemic. We are being joined by Floyd Sayers, Flomotion and award winning interior designer Louise Ives-Wilkinson to discover how the environments we work in can have such a great impact on our health and wellbeing.   Floyd has been working at Flomotion for 3 years and believes that to do our best we need to feel good and that means focusing on the body and mind, leading to more productivity, engagement and improved health and wellbeing. He will share Flomotion’s knowledge and expertise around sit-stand desks, active seating and accessories. Alongside their health and wellbeing initiatives promoting movement, exercise, stretching, breathing and mindfulness. Louise, whilst taking time out from designing to raise her family, fell ill from post-natal depression and anxiety. During the time spent battling these illnesses Louise realised the huge impact your internal environment can have on your health and wellbeing. When starting to research deeper into the field, her studies led her to Biophilic design. Starting with her home, she set about creating a sanctuary which would help reduce her depression, lower her stress levels and increase her sense of wellbeing. After her recovery and realisation of the growing mental health crisis, Louise identified a way to help others through interior design. She changed the focus of her design business to incorporate proven design methodology to create a holistic approach to interior spaces. The breakfast event will give delegates the opportunity to learn, network, build relationships and enjoy a breakfast with fellow Chamber members. To find out more about the event, or to book a place: CLICK HERE.

This is the fourth in an annual series of ground breaking Tech Nation reports that give deep insight into the UK tech ecosystem to further the understanding of the sector’s key challenges, opportunities and trends for the year ahead and beyond.

It highlights the unique strengths of clusters and considers how to support their growth in an evolving political climate. The Norwich Tech cluster features continued growth and highlights the growing number of digital/tech jobs, as well as the strengths and challenges faced by digital and tech companies in our region.

Overall the UK has cemented its position as a global tech leader. 

Its digital tech sector is a shining light not only in Europe but also on a global scale. In London, 33% of tech company customers are based outside the UK, compared to 30% in Silicon Valley and 7% in Beijing.  The report shows that the UK’s global connections are key to domestic success.  With 25% of the world’s entrepreneurs reporting a significant relationship with two or more others based in London, a figure beaten only by Silicon Valley.

Jobs in digital tech are on the rise. 

From 2014 to 2017 digital tech sector employment rose 13.2%. In Norwich the digital tech jobs rose to a total 13,411 in 2017.  UK workers are more productive, on average, by £10,000 per worker. Jobs requiring digital tech skills command higher salaries, at £42,578 compared to £32,477 for those that do not.  Only 19% of the digital tech workforce is female. Despite the stereotype that digital tech jobs are for millennials, 72% of workers are aged over 35.

In survey, the Norwich cluster identified the top strengths as:

1          Appealing area

2          A helpful tech community

3          Proximity to a university

Whilst the top three challenges were identified as:

1          Limited infrastructure

2          Access to talent

3          Bad transport links