Chamber News

The British Chambers of Commerce (BCC) today (Thursday) publishes its Quarterly Economic Survey – the UK’s largest and most authoritative private-sector business survey. Based on the responses of over 7,100 businesses, the survey shows that UK economic growth remained subdued in the first quarter of 2018, with Norfolk’s export performance remaining static in comparison to a strong performance at a national level.  However the national figure are now in line with those in Norfolk.

In the service sector, a key driver of the UK economy, the proportion of firms reporting improved export sales and orders remained static, although overall growth remains muted and relatively unchanged from the previous three months. Consumer-facing industries continue to report tougher trading conditions than B2B firms. 

Domestic factors continue to weigh on the UK economy. Fewer firms in the manufacturing sector saw an increase in domestic orders, and the balance of firms reporting an increase in domestic sales is now at its lowest level since Q1 2017. Tighter cash flow is an increasing concern for many, and the skills shortages that have plagued businesses for the last few quarters have failed to ease significantly, with those in both sectors still struggling to recruit.

Despite a small uptick in business confidence at a national level, at a local level, the picture remained stagnant.  Amid a troubling domestic backdrop much more needs to be done to safeguard the future of the economy. A strong focus on fixing the fundamentals of business – reducing the upfront costs, reforming the Apprenticeship Levy, and boosting our domestic physical and digital infrastructure – will go some way to removing many of the barriers which are holding back business communities across the country.

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. Export orders also remained static at +26, a stronger result than the East of England figure (22+), but still slightly below the national number (+28).
• The percentage of manufacturers that attempted to recruit in the last three months also remained the same at 83%.  Of those, 67% had recruitment difficulties, down slightly from 73% in the previous quarter but still high by historical standards. Of these, skilled manual labour was the leading areas of recruitment difficulties (77%).
• Confidence in turnover rose slightly from +45 to +46, whilst confidence in profitability dipped from +36 to +35. The balance of firms investing in plant and machinery rose slightly from +31 to +33.
• 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).
• The balance of firms reporting cashflow improvements still remains close to negative territory at +4 – the same as the 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%)
• Confidence in turnover fell from +26 to +24, as did confidence in profitability from +20 to +15. The balance of companies investing in training remained unchanged at +13, while investment in plant and machinery rose from +7 to +8.
• 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 cashflow improvements remains quite low at +11 (up slightly from +10 in the previous quarter).

Commenting on the results, Nova Fairbank, Public Affairs Manager for Norfolk Chamber of Commerce said:

“What growth we see in the Norfolk economy is due principally to strong global trading conditions, rather than domestic demand, which remains muted. Uncertainty, recruitment difficulties and price pressures remain persistent concerns for businesses of every shape and size, even if short-term confidence levels remain resilient. 

“Whilst the national economy saw a good performance from exporting manufacturers – which brought their results in line with those in Norfolk this quarter.  The Norfolk manufacturers did not find further opportunities and their results remained the same as the previous quarter.  Therefore whilst more exporters were able to reap the benefits of lower Sterling, the UK economy as a whole is treading water, rather than powering ahead. 

“It’s time for the UK government to multitask and demonstrate that it can do more than negotiate Brexit. A far stronger domestic economic agenda is needed to fix the fundamentals needed for business to thrive here at home. 

“At a time when Norfolk firms face steep up-front costs, the apprenticeship system is in crisis, roads are being allowed to crumble, mobile phone and broadband ‘not-spots’ are multiplying, it’s obvious that the key to improved productivity and competitiveness lies in getting the basics right. 

“Sorting these business fundamentals must move to the top of the agenda – and fast.” 

Suren Thiru, Head of Economics at the British Chambers of Commerce, said:

“The results indicate that UK GDP growth continued to underwhelm in the first quarter of 2018. Activity in the dominant services sector was muted in the quarter, with most of the key indicators remaining below their pre-EU referendum levels.

“Our findings suggest that cash flow is increasingly an issue for businesses who remain under pressure from a combination of high upfront business costs, subdued financing levels and unfair payment practices. Tightening cashflow is a key business concern as it can leave firms exposed to sudden changes in economic conditions.   

“UK exporters enjoyed another strong quarter, boosted by the improving outlook for the global economy. There was an encouraging uptick in investment intentions and business confidence. If this trend continues, we could see overall business activity pick up in the coming quarters. 

“The latest results also indicate that inflation is now on a downward trajectory, with inflation expectations easing in the quarter. Significantly, firms continue to report little upward pressure from pay settlements. While we expect interest rates to rise next month, with UK economic conditions subdued and inflation weakening, the case for a further tightening in monetary policy continues to look limited at best.”

A phased launch of the Customs Declaration Service (CDS) will start in August this year.

The new system will, HM Revenue & Customs (HMRC) has announced, be phased in between then and early 2019.

The CDS will replace the existing Customs Handling of Import and Export Freight (CHIEF) system.

From early 2019, businesses exporting goods to countries outside the EU or importing them from those countries will need to make all declarations using the CDS.

During the transitional phase between August 2018 and early 2019, CHIEF will continue to run alongside the new system.

CDS will be accessed via the GOV.UK portal, using a Government Gateway account. Traders using customs declaration software will, HMRC has confirmed, need to follow instructions and documentation provided by the package supplier.

HMRC also points out that companies will be required to provide some additional information for declarations in order to align with the World Customs Organization (WCO) Kyoto Convention, currently being implemented in the UK through the Union Customs Code (UCC).

That information will include an audit trail of previous documents and additional party types, such as the buyer and seller.

In order to align UK customs data with international standards, there will also be a number of other changes, including to the location of goods identification and the warehouse type code list.

Businesses wishing to keep informed about developments with CDS are invited to register with the HMRC Business Help and Education email service at public.govdelivery.com.

CDS updates will be available under the “trading with other countries” heading.

Businesses in West Norfolk are invited to attend a free special networking lunch hosted by Norfolk Chamber of Commerce at King’s Lynn Town Hall on Thursday 26 April. With over 75 businesses already registered to attend, there’ll be plenty of opportunities for businesses to make new connections, share bright ideas and expand their professional network at this key event hosted by Norfolk’s leading business organisation. Businesses will hear from Norfolk Chamber’s Chief Executive, Chris Sargisson who will reveal exciting new plans to enhance the Chamber’s involvement, presence and service offering in West Norfolk. Following a consultation with local businesses in 2017 to find out what future developments and support they would like to see, the Chamber has responded by planning future activities that will boost engagement with the West Norfolk region. Chris Sargisson said: “There are lots of exciting, successful businesses and plenty to celebrate in West Norfolk. We’re keen to meet as many businesses as possible on 26th April to form closer relationships with the business community we serve and to communicate Norfolk Chamber’s commitment to providing outstanding support, services and new opportunities in the West Norfolk region.” The event will be hosted by the president of the West Norfolk Chamber Council and general manager of the Bank House Hotel, Michael Baldwin. Michael is a champion of the West Norfolk region and committed to promoting King’s Lynn as a leading business destination.  Showing his enthusiasm for the event, Michael said: “I think that this event is a really important step forward in making the west of Norfolk more engaged with the chamber….  We have lots of new and established organisations who I hope will see the chamber as a go to when it needs support. There is a lot of investment happening in West Norfolk and I see real potential for Norfolk Chamber to be involved and help shape the future of the local area.” Businesses will hear from guest speaker, Matt Sykes, founder of training firm, Salescadence. Matt will provide top tips on how to effectively approach networking events and deliver clear guidance on how to make every opportunity you get to meet someone a truly memorable one. The event will feature an exhibition of supporters of the event, which includes New Anglia Local Enterprise Partnership, King’s Lynn BID and Love West Norfolk. ‘Connecting Businesses in West Norfolk’ is open to businesses with a registered premises or those that operate in West Norfolk. Book your free place today at www.norfolkchamber.co.uk/events  Date: Thursday 26 April 2018 Time: 11am – 1pm Venue: King’s Lynn Town Hall

Over 100 members joined us at Cooper Norwich BMW showroom for a free breakfast event. Guests were taken on an impressive behind the scenes tour of both MINI and BMW showrooms.

There was plenty of networking, coffee and breakfast to fuel guests for their day ahead. There were stands from local businesses including; Workplace Charging, MIGSOLV, Barnham Broom Hotel Golf & Spa, Big C, Flawless Faces, CMT Muscle Health & Wellbeing and Norfolk Gin. 

Members heard from Andrew Bracking, Head of Business and Jennifer Sutton, Business Development Manager at Cooper Norwich BMW on business related services. 

Jon Holland from Thrifty Car & Van Rental won the business card draw for the BMW Easter Hamper which included goodies such as prosecco, chocolate, and BMW branded merchandise. 

Chris Sargisson, our Chief Executive closed the event with his entertaining on stage personna and reminded members how they could get involved in Norfolk Day and Just Dual It campaign for the A47. 

You can view the photos from the event here. 

On Friday 20th April 2018, several of our region’s MPs will be launching new job campaigns for their regions.

Elizabeth Truss MP and George Freeman MP will be launching a new campaign, Breckland for Jobs in conjunction with Breckland Council and in West Norfolk, Sir Henry Bellingham MP will be launching the West Norfolk for Jobs campaign.

Both initiatives are in partnership with The DWP and are aimed at helping young people aged between 18 to 24 secure work, which will help our local economy and build better communities.

Can you help?

Could you support a young person by offering mock interviews, CV advice, information and advice on your industry?  The initiatives will also be able to help you find suitable candidates to apply for any apprenticeship or jobs you need to fill.

West Norfolk for Jobs             King’s Lynn                 8.30am

Breckland for Jobs                 Dereham                     10.30am

                                                Thetford                      2.30pm

If you would like more information and to attend the launch event and meet your MP, please contact Nikki David on email: NIKKI.DAVID@DWP.GSI.GOV.UK to confirm your official invitation to join us at the launch of this exciting campaign.

There would be some reductions in consumer prices, but nothing to get too excited about according to new research by the Institute for Fiscal Studies (IFS).

In The Customs Union, Tariff Reductions and Consumer Prices, the IFS estimates the scale of the gains that consumers might expect if the UK were to leave the Customs Union and reduce its tariffs.

Its analysis shows that this would have only a limited impact on the cost of living of the average household because the average tariff rates that the EU charges on the sorts of goods consumed in the UK are not particularly high.

The IFS points out that the average tariff under the World Trade Organization (WTO) most-favoured-nation (MFN) status that would apply to UK imports from countries with which the EU has no trade agreements is 4.6%.

Once the EU’s various trade agreements which waive or reduce tariffs on imports from certain countries are taken into account, the average is 2.8%.

With services dominating the UK economy, just £26 of every £100 spent by UK households is affected, directly or indirectly, by the import prices of goods on which tariffs are charged.

“Simple arithmetic suggests therefore that even cutting all tariffs to zero could only reduce prices overall by 1.2% at most,” report author Peter Levell concludes.

Crucially, any benefits that might accrue to consumers from running an independent tariff policy also need to be set against the inevitable costs to UK trade that would result from leaving the Customs Union, the report warns.

Businesses will probably be affected by customs delays and storage costs that would result from the erection of customs barriers on trade with the EU, while regulatory differences between the EU and the UK are also likely to create various non-tariff barriers to trade.

Such changes are likely to increase costs for consumers and offset the (already rather limited) gains from tariff reductions, the IFS argues.

Vattenfall’s Supply Chain Information Pack has been launched today and gives lots of early information on the background to the project for Norfolk Vanguard and Norfolk Boreas windfarms.  It outlines the timelines for construction, the range of opportunities available and links to sources of support and advice for local companies interested in getting involved with the project.

Initial focus on the 60km onshore cable route works means exploring a wide variety of opportunities, ranging from landscaping, composites, plant hire, waste management, fabricators and farmers to transport, accommodation and safety supplies. 

Commenting on the launch of the Supply Chain Information Pack, Nova Fairbank, Public Affairs Manager for Norfolk Chamber of Commerce said:

“Norfolk Chamber believes that Vattenfall will help deliver skills and local jobs for the future generations both onshore and offshore in our region.

Vattenfall can offer supply chain opportunities to a diverse range sectors and more importantly, they are keen to ensure that their investment remains within the region.  This investment, together with their support to create a future skilled workforce, will help support greater economic growth and prosperity and long term sustainable relationships with the Norfolk business community.”

You can now register your business interest with Vattenfall by completing their online form – click here to complete it now. 

If you have any immediate questions about the supply chain opportunities at this early stage, you can contact Vattenfall direct.

Alternatively, Vattenfall will also be at the EEEGR Southern North Sea conference and Exhibition on the 16th and 17th May at the Norfolk Showground Arena.

Do you have some interesting business news you would like to share or shout about? Maybe your company or a member of your team has recently won an award or achieved something fantastic. Our printied magazine,The Norfolk Voice is a great place to share this news. All we need is some information from you and a high-quality photograph to accompany your text.

It’s not too late to make this edition May/June, and we would love to feature your news or a detailed article in the magazine. If you could get some information to us before Monday 9 April please get in contact with Dominique Bivar Segurado our Marketing Coordinator dominique@norfolkchamber.co.uk. Alternatively upload our news/blog to Members News section of our website to be automated considered for inclusion. You can find out how to upload Member News with our step by step guide here.

Access to mobile voice call services is a basic requirement of business today: it’s essential to consumers and for linking people and communities. That’s why the British Chambers of Commerce has launched a campaign calling for No More Not Spots!

A 2017 survey by the BCC found that 70% of UK firms experience ‘not spots’, areas of no mobile coverage by any operator, or ‘partial not spots’, where there is some coverage but not from all networks, in their local area.

The aim of this campaign is to end not spots for voice coverage for UK phone users where they live, work, travel or plans.

From the time that cell phone services were first introduced in the UK to the present day, the locations with signal coverage have grown from a handful of urban areas to around 98% of UK premises (the area immediately adjacent to a property). The UK’s four Mobile Network Operators have invested heavily to deliver against their licence obligation of 90% geographic coverage for voice and text by the end of 2017.

However, despite welcome progress in network rollout, the lived experience of mobile phone users can differ from the scale and consistency suggested by these numbers. With about 30 million residential and commercial properties in the UK, 98% of premises would still leave around 600,000 buildings without coverage; with only 10% of Britain’s landmass ‘developed’ – 90% geographic coverage still leaves not spots in areas like dense commercial centres, road and rail corridors where access issues and the economics of new infrastructure investment are challenging.

Results from BCC’s infrastructure survey, conducted in February this year showed that a majority (53%) of responding businesses perceived the reliability of the UK mobile phone network to have improved over the last five years. But a substantial number (21%) did not agree that the network meets its needs for accessing new and existing customers, suppliers, and employees.

The reasons for patchy coverage are many and varied: from building and vehicle design to the number and location of masts and cells; from the topography of the built and natural landscapes to the technologies in phones. 

Through this campaign, we will continue to engage with the Norfolk business community to identify gaps in coverage, and to work constructively with industry and government to resolve this locally.

Over the next year, Norfolk Chamber of Commerce will be convening to business communities and those involved in delivering coverage, so do keep an eye out for events and let us know if you want to get involved.

And, if you experience a not spot be sure to report it to the British Chambers of Commerce, and tell us about it on Twitter using the hashtag #ShareYourNotSpots. 

The message at the South Norfolk Business Breakfast last week was how focusing on your staff satisfaction will have a direct impact on your business success!

We welcomed Chamber members to Park Farm Hotel, Hethersett for our sold out breakfast for a morning of networking and an inspiring talk. 

As guests enjoyed their first cup of coffee of the morning, they made the most of interacting with the stands present at the breakfast: Buy local Norfolk, Cneqt DNA Limited, Inspired Renewables and Select Office Furniture.

After some time getting to know one another, they enjoyed a delicious spread of breakfast.

Guests then heard from our expert speaker Lisa Collen, Director of People for Flagship Group. She spoke about the undeniable correlation between a happy workforce, customer satisfaction and ultimately, profitability and how Flagship have introduced agile working, a relaxed dress code and flexible benefits among other well-being measures for their staff to enhance overall employee satisfaction.

At the beginning of the week, Norfolk Chamber, the EDP and Norfolk County Council, together with MPs, political leaders and the business community hosted a visit by the Roads Minister, Jesse Norman MP in King’s Lynn and launched our ‘Just Dual It!’ campaign

The event, held at the Town Hall in King’s Lynn was to highlight to the Roads Minister that Norfolk is no longer prepared to wait for much needed improvements.  It was a chance to garner the support of local MPs and for the business community to highlight the benefits that a dualled A47 could bring to our local economy.

Respondng to the calls for a47 improvements, Mr Norman said “I can only admire the steadfastness the energy and perseverance of everyone working together to make a collective case for action.”

The Just Dual It campaign is backed by the A47 Alliance and is looking for a commitment from Government to fund dualling the entire length of the A47 from Lowestoft in the East to Peterborough in the West by 2030.  How well we make the case for dualling the entire length, is up to us as a business community.  We need your support to join us to make the business case for the A47 improvements.

Commenting on the need for county-wide support, Nova Fairbank. Public Affairs Manager for Norfolk Chamber said:  “To access further funding, we have to work within the Government’s frameworks and back that with the support of the business community and general public.  We need to have a strong clear and consistent message and keep going until we achieve the full dualling of the A47.”

How can you help?

We need to hear from you about what benefits a fully dualled A47 will make to your business.  Could it help create more jobs; enable your business expand; make it easier for your clients to visit you; or would you be able to move your goods more easily?

We need you to be specific in your responses, which will help build the overall business case.  The more support we can garner and the more specific we are in the benefits; the more compelling our case will be.

There are several ways you can get involved:

• Use the following link to write your e-postcard: https://sandbox.norfolkchambers.co.uk/contact/just-dual-it

• Buy today’s EDP (Friday 23 March 2018) which includes with a Freepost postcard on which you can send your message to government

• Pick up a postcard from the Chamber offices in Whiting Road, Norwich; the EDP’s offices, Rouen Road, Norwich; Norfolk County Council, Martineau Lane, Norwich; Great Yarmouth Town Hall; or West Norfolk Council offices in King’s Lynn

• Tweet your support using the hashtag: #JustDualIt

Improved global demand continues to feed growth across most of the manufacturing supply chain, a new survey has revealed.

Published by the manufacturers’ organisation, EEF, and accountancy and business advisory firm BDO LLP, the EEF/BDO Manufacturing Outlook for the first quarter (Q1) of 2018 shows that demand from European and capital equipment markets, in particular, is helping UK manufacturers start this year in the same positive way they ended 2017.

Manufacturing activity stepped up a gear through 2017 providing industry with some decent momentum coming into this year, EEF Chief Economist Lee Hopley said.

“The importance of a buoyant global economy to export-focused manufacturing sectors is again reinforced,” she explained, “with growing overseas demand encouraging international manufacturers to ramp up their investment which in turn is spurring particularly strong activity in UK capital goods sectors.”

According to the survey, two-thirds of manufacturers see the EU as offering good prospects for growth, with the next best markets of Asia and North America seen as supportive by around a quarter of companies.

With output, orders, investment and recruitment all significantly above their long-run averages, EEF has upgraded its growth forecasts for manufacturing in 2018 from 1.4% to +2.0% (the EEF forecast for the overall UK economy this year is 1.5%).

EEF also notes that growth in world trade has been matched by a large improvement in the UK orders balance at the start of this year. Although export orders eased slightly (from +33% in 2017 Q4 to +29% in 2018 Q1), domestic order balances almost doubled (from +12% to +21%).

A word of warning was also issued: there are some sign in the survey that automotive and construction supply chains are seeing signs of weaker demand, which could see a greater sector variation in performance both this year and next.