Chamber News

The Greater Norwich Local Plan (GNLP) is being produced by Broadland District Council, Norwich City Council and South Norfolk Council working together with Norfolk County Council through the Greater Norwich Development Partnership (GNDP).

They are seeking business views on the Greater Norwich Local Plan (GNLP) and their Growth options document which sets out:

• the broad housing numbers required to 2036;
• six main distribution options; and
• a significant number of questions on various policy areas such as air quality, landscape and affordable housing

The consultation runs until 15 March 2018.  The growth plans are at an early consultation stage – no final decisions have been made on any policy choice.  You can view the document online via www.gnlp.org.uk, and make your comments at the same time. You don’t need to answer every question – you can simply comment on whichever parts of the plan interest you.

The GNDP will also be holding a series of roadshows across the Greater Norwich area, commencing on 22 January and running through to 14 March – for specific venues and dates click here.

Hard copies of the maps and all other consultation documents are available from the consultation deposit points:

• County Hall, Martineau Lane, Norwich (main reception);
• City Hall, St Peters Street, Norwich (2nd floor reception);
• Broadland District Council, Thorpe Road, Thorpe St Andrew (main reception);
• South Norfolk Council, Cygnet Court, Long Stratton (main reception).

The quickest and easiest way of responding to the consultation is online – so have your say now

Alternatively you can contact the GNDP on 01603 306603 to get a response booklet. All responses must be received by 5pm on 15th March 2018.

The British Chambers of Commerce (BCC) today (Wednesday) publishes its Quarterly Economic Survey – the UK’s largest and most authoritative private-sector business survey. Based on the responses of over 7,000 businesses, including those in Norfolk, the survey shows that growth in the UK economy remains subdued, with almost all services indicators below their pre-EU referendum levels and the strong performance of manufacturers easing slightly in the final quarter of 2017.

The findings of the survey indicate the skills shortages are reaching critical levels. Of the service sector firms hiring, the percentage of Norfolk firms reporting recruitment difficulties rose to 83%, a rate not seen since Q2 2016. In manufacturing, the percentage of recruiting firms reporting greater difficulties remained static from the last quarter at 73%.

In the manufacturing sector, the proportion of firms reporting improved export sales and orders rose to 31%, compared to the previous quarter at 27%. The indicators for domestic sales, employment expectations, recruitment and confidence in turnover are also lower in the majority than in the previous quarter.

In the service sector, a key driver of the UK economy, growth remains muted and relatively unchanged from the previous three months, and is below historic averages. The proportion of firms confident that turnover and profitability will improve in the next year decreased, and the number of firms reporting improved cashflow, whilst increasing slightly, remains low.

Both sectors have seen considerable rises in the proportion of businesses expecting prices to increase in the next three months. In the Norfolk services sector, the percentage balance of firms expecting their prices to rise jumped to +49%, the highest since Q3 2008. In the manufacturing sector, the percentage balance of firms expecting their prices to rise increased from +26% to +54%, the highest since Q4 2016.

The results emphasise the need to kickstart the economy by addressing the barriers to growth – in particular the growing skills gap – which is hindering the ability of companies to find the workers they need to develop.

Key findings in the Q4 2017 survey:

Norfolk Manufacturing sector:

• The balance of firms reporting increased export sales rose from +27 to +31, the lowest since Q4 2016. Export orders remained static +27 to +26. The balance of firms reporting increased domestic sales fell from +19 to +17 and domestic orders rose slightly from +21 to +23
• The percentage of manufacturers that attempted to recruit in the last three months remained static at 83%.  Of those, 73% had recruitment difficulties. Of these, skilled manual labour was the leading area of recruitment difficulties (79%).
• The percentage of manufacturers expecting their prices to increase jumped from 26% to 54%, standing near historic highs. The price of raw materials remaining the key driver, with 80% reporting it as a cause of price pressure (down slightly from the 82% in Q2 and Q3)
• The balance of firms confident turnover will increase in the next 12 months rose from +19 to +45, while confidence in profitability held fairly steady at +36, up from +31
• The balance of companies reporting cashflow improvements remains low at +4, while the balance of firms investing in plant and machinery rose from +19 to +31, and also those investing in training rose from +14 to +33

Norfolk Services sector:

• The balance of firms reporting improved export sales fell slightly from +12 to +8, and whilst orders rose from +2 to +6. Domestic sales rose slightly from +14 +16, and also orders from +6 to +10
• The percentage of businesses attempting to recruit remained static at 64%. Of those, the percentage of services firms reporting greater recruitment difficulties rose from 63% to 83%, the highest since records began
• The balance of services firms expecting prices to increase, rose considerably from 33% to 49%, the highest since Q3 2008
• The balance of firms that report cashflow improvements remains low, despite rising from -1 to +10. Investment also remains muted, with investment in plant and machinery standing at +7 (up from +5) and training +13 (no change from previous quarter)
• The balance of firms confident turnover will increase fell from +32 to +26.  Confidence in profitability remained depressed falling from +21 to +20

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

“While there are many business bright spots across Norfolk and the rest of the UK, the evidence from the biggest private business survey in the UK shows that growth and confidence remain subdued overall as we enter a new year.

“Labour and skills shortages are set to be the biggest potential drag anchor on business in 2018, since ultimately it is people that make businesses work. Business itself must do more – by training and investing wherever possible in people – but government must also give firms the confidence to put their livelihoods on the line and go for growth.

“The UK results highlight that, apart from Wales (88%), the East of England (82%) has the highest number of recruitment difficulties in the UK.  This must be the year employers act rather than just complain on skills, and the year government delivers clarity, leadership and investment in people and infrastructure. Kick-starting growth, and boosting wages and prosperity for all, depends on this.”

Also commenting on the latest QES results, Suren Thiru, Head of Economics at the British Chambers of Commerce, said:

“These results suggest that GDP growth remained underwhelming in the fourth quarter of 2017. Services sector activity remains subdued with most indicators still below their pre-EU referendum levels. Consumer-facing firms in particular are facing an uphill struggle due to negative real wage growth, which is continuing to stifle consumer spending. That said, the sector is still likely to have been the main determinant of growth in the fourth quarter.

“Following a strong showing for much of 2017, the manufacturing sector did come off the boil a little in the last quarter, with most of the key indicators weakening in the quarter.

“The latest results also confirm that inflation remains a concern with a significant spike in inflation expectations in the quarter. While inflation is likely to peak in the coming months it is likely to remain stubbornly above the Bank of England’s 2% inflation target for a prolonged period, maintaining the cost pressures on both consumers and businesses.

“Looking forward, the UK economy is set to continue on an underwhelming growth trajectory over the near term with uncertainty over the impact of Brexit coupled with high inflation and weak productivity likely to dampen overall economic activity.”

This morning Norfolk Chamber of Commerce supported the launch event for the Norfolk Skills and Careers Festival 2018.

The event took place at The Ideas Factory in Norwich on Monday 8 January from 8am with over 40 businesses in attendance.

Attendees were able to hear from the organisers of the region’s largest careers events and learn more about the festival and how they can help to inspire, motivate students.

Mark Nicholas, Show & Programmes Director at Royal Norfolk Agricultural Association steering group leader welcomed all guests to the event and gave an overview of the event.

The guest speaker was none other than our Chief Executive, Chris Sargisson who talked about the challenges with addressing the county’s skills gap.

Business can support this non-for-profit event by taking an exhibition stand, sponsoring or volunteering.

To be part of the largest skills and careers event in Norfolk, with 70 employers, 4,500 students, 100+ careers represented across the two days. The event takes place 7 & 8 March 2018 at Norfolk Showground. For more about the festival visit https://norfolkskills.co.uk

There has been much talk about austerity and the need for local authorities to make cost savings in their budgets, resulting in potential cuts to some services.

Later this month, Norfolk County Council will be consulting the local business community on the budget planning and prospects for 2018-2019 and the impact of those plans on the County’s delivery of key services as well as the impact on the economy.

Norfolk Chamber will be working in partnership with the Norfolk County Council to deliver the Business Ratepayers Consultation event – this is your opportunity to hear about the County Council’s plans and have your say.

To find out more and to book your place click here.

Throughout 2017, Norfolk Chamber of Commerce has seen an improvement in the confidence of local businesses who are exporting outside of the EU. 

Compared to previous years, the number of export documents from businesses in Norfolk, together with the value of goods, has increased in 2017.

Norfolk Chamber has the expertise to support all types of businesses across the county with help, advice and documentation to allow them to trade overseas.  We are the only organisation authorised by HM Government and HMRC in Norfolk to check and stamp export documentation on their behalf.

The recent statistics show that Norfolk Chamber’s International Department has seen a 4% increase, compared to the previous year, in the number of export documents for outside European Union – with the total of 5,100 documents being processed. This has led to a 3.8% increase in the value of export goods from £112.5m in 2016 to £117m in 2017.

Commenting on the increase, Julie Austin, International Trade Manager for Norfolk Chamber said:

“These latest figures demonstrate that Norfolk exporters remain optimistic about what the future holds, despite the many unanswered questions post-Brexit.   This is a timely reminder that businesses are doing their best to ignore the economic uncertainty and are focussing on the success of their own operations.

“Trading overseas can be complex, so whether you are breaking into a new overseas market for the first time, or you’re already an experienced exporter, keen to develop your international operations, you’ll find all the help you need at the Norfolk Chamber, with friendly advice and a prompt service.”

Chamber member, Pasta Foods are a major exporter in Norfolk, with multiple sites in the county. They are a business to business food manufacturer of pasta and snack pellets and are currently exporting to over 40 countries worldwide.

Michele Conway, Sales Director said:

“In 2017 we have seen an overall increase in our export business and integral to our success is the support we receive from the Norfolk Chamber of Commerce,  who we use to legalise our documentation. We plan to grow our export business even further in 2018 targeting growth on every continent.”

If you are wanting to increase or start exporting in 2018 contact the International Department at Norfolk Chamber call 01603 729715 or email: export@norfolkchamber.co.uk. Visit www.norfolkchamber.co.uk for more information.

Last week came the news that Colman’s, after a long history with the city, was joining Britvic in moving the majority of their production out of Norwich.  Whilst this was disappointing news for Norwich – it is by no means representative of the state of the whole of the Norfolk manufacturing community. 

The manufacturing sector is spread right across Norfolk.  Many have a long history with the county and will continue to evolve with the use of technology and maximise plans to capitalise on future opportunities.   Norfolk Chamber has gathered a small snapshot of Chamber members manufacturers who have been highlighting their successes in 2017 and identifying some of their plans for 2018.

Broadland Wineries, based in Norwich, outlined how they have added new talent to their team and have exciting plans to increase their customer base.  Chairman, Mark Lansley said:

“In 2017 Broadland Wineries had a tougher year due mainly to the increased cost of imported wines and the fall in the value of the pound. But recently the company has added new talent to its team and has teamed up with Sir Ian Botham and other strategic partners to further develop its branded wine range, alongside its private label offering, to further increase its customer base, so the company is fairly optimistic for 2018”.

Pasta Foods, who have sites in Great Yarmouth and Norwich, has increased their exports over the last year, Michele Conway, Sales Director said:

“In 2017 we have seen an overall increase in our export business and integral to our success is the support we receive from the Norfolk Chamber of Commerce,  who we use to legalise our documentation. We plan to grow our export business even further in 2018 targeting growth on every continent.”

Esther Evans, Managing Director of STM Packaging Group Ltd I Norwich, explained how her organisation has developed new export opportunities in central and southern Europe and have ambitious plans for 2018. She said:

“We have really benefited from the weaker pound value in 2017 and have developed some new and valuable export accounts in central and southern Europe. As a result of our manufacturing being situated in the east of England, the logistics for this export are quick, viable and efficient.   

“We have ambitious growth plans for 2018 in niche and specialist markets that allow us, as an SME, to offer very high levels of customer service and innovation which the larger and less flexible companies are unable to match.  This also gives us good added value opportunities and the chance to develop and retain long-term relationships with those customers. 

“We are also looking to develop strategic alliances with other local SME’s who manufacture similar and complimentary products so that we can all develop and grow together and take advantage of the market reach of each company. The delivery of any strategy only works if the team understand the objectives and all of our colleagues at STM Packaging Group are genuine and committed people who will ultimately benefit from their own success.”

Another positive for Norfolk is that our infrastructure continues to improve, albeit at a pace slower than most businesses would like.  Over recent years, government has allocated funding for improvements to road and rail infrastructure.  Our ability to gain access to superfast broadband is also improving, but more work still needs to be done.  It’s time to accelerate all those plans to head off any feelings that infrastructure is a barrier to business growth!

Commenting on the future for Norfolk businesses, Nova Fairbank, Public Affairs Manager for Norfolk Chamber said:

“To better enable the Norfolk business community to grow, we will to continue to work with our partners to lobby hard to gain greater infrastructure improvements that are delivered as soon as possible to maximise the benefit for the local business community.

“There are a great many business prospects going forward, with opportunities such as the Cambridge to Norwich Tech Corridor and the Enterprise Zones in Great Yarmouth, King’s Lynn and Norwich – all designed to develop greater economic growth and jobs for our region.  

“Norfolk is most definitely open for business.”  

Following the consultation events held in the summer of 2017 to develop the new Economic Strategy for Norfolk and Suffolk.  Norfolk Chamber is once again teaming up with New Anglia LEP to capture the views and activities of businesses in Norfolk.

What does your business need to grow? 

The strategy identifies the key themes and opportunities for the region’s businesses and now we need you to help create the delivery plans. You’ll have a chance to tell New Anglia LEP what activity is already under way in your business and identify what you have planned for the coming years. 

Book your place now!

Norfolk Chamber and New Anglia LEP are providing three opportunities to get involved and have your say in Norfolk:

25 Jan 2018   Knight’s Hill Hotel, King’s Lynn   3pm – 5pm

29 Jan 2018   Norwich City Football Club, Norwich   3pm – 5pm

19 Feb 2018   Imperial Hotel, Great Yarmouth   3pm – 5pm

A recent UK Powerhouse Report, by law firm Irwin Mitchell and the Centre for Economics and Business Research, says Norwich’s gross value added (GVA) – the measure of the value of goods and services produced in an area – is predicted to grow by 1.62% over 2018.

Out of 45 settlements in the report, Norwich is ranked joint eighth, with Portsmouth.  This continues a positive trend, where a similar report in October showed Norwich’s GVA at £2.8 billion and 136,800 people in employment – one of only a few cities predicted to grow its GVA by 2% year on year.

Cambridge led the table, with a predicted GVA growth of 2.19%, while Ipswich came in fourth, with a forecast growth of 1.75%.

Commenting on the report findings, Nova Fairbank, Public Affairs Manager for Norfolk Chamber said:

“Norwich’s strength is its dynamic and diverse business community – which enables it to weather the challenges of the current economic climate.

“With strong emerging sectors such as digital/ICT and innovations in food science and agri-tech, as well as the more traditional sectors such as professional services and insurance, our region clearly has the potential to increase economic growth and create more jobs.”

A future UK-EU trade deal must minimise barriers to trade says the British Chambers of Commerce, as it released the results of its survey (27 December), in partnership with DHL, which finds UK businesses regard Europe as their primary trading partner for the coming years.

The results, based on the responses of over 1,300 businesses, found that over the next three years, the top two markets, which most businesses plan to start or continue exporting to, are Western Europe (44%), and Central and Eastern Europe (32%). Western Europe (36%) is also the market which most firms plan to import from.

According to the findings, UK businesses foresee the most significant barriers to trading with foreign markets as tariffs (46%), customs procedures (39%) and local regulations (20%). The results also show exporters’ strategies over the next three years will primarily be influenced by increased demand from overseas buyers (48%), exchange rates (36%) and the UK’s future withdrawal from the EU (35%).

Businesses looking to import say they will primarily be influenced by the lack of suppliers in the UK (43%), followed by exchange rates (41%), and it being cheaper to import than source in the UK or produce within their business (33%).

The results of the survey underline the importance of the UK and EU reaching a business-friendly trade agreement that minimises costs and trade barriers. Europe will not only remain an important market for UK businesses to sell to, but with minimal evidence that UK businesses can substitute domestic inputs for imports in the short term, access to the European market will be crucial for firms to source components.

Julie Austin, International Trade Manager at the Norfolk Chamber of Commerce said:

“Europe is the UK’s largest trading partner, so it will come as no surprise that businesses regard access to European markets and products as fundamental to their medium-term trading strategies. Now that negotiations on the future UK-EU relationship are set to begin, businesses need clarity on the practicalities of the future trading relationship between the UK and EU without delay.

“High tariffs, cumbersome customs procedures, as well as conflicting regulatory requirements can deter firms from trading overseas – so a future agreement between the UK and the EU must minimise barriers and costs, to allow firms on both sides of the Channel to continue trading as freely as possible.”

Also commenting on the results, Dr Adam Marshall, Director General of the British Chambers of Commerce, (BCC) said:

“The devaluation in sterling seen over the past 18 months has been a double-edged sword, providing a welcome boost for some exporters, but a drag on many other firms, who report higher costs for their inputs and components. While UK firms would like to be able to source inputs on the domestic market, our evidence suggests that swapping imports for domestic supplies isn’t presently an option for many.

“If businesses can’t find or afford to source their supplies domestically, easy and quick access to foreign markets is crucial. Both the UK government and EU Commission must work together in 2018 to move towards a frictionless trade deal that works for both British and European businesses.”

We have a number of Norfolk Chamber Wall Planners available to be given out.

If you would like one, please drop us an email with the address for us to send it to and we will pop it in the post.

Email: membership@norfolkchamber.co.uk

As we come to the end of another tumultuous year of Brexit negotiations, Norfolk Chamber’s International Trade Manager, Julie Austin outlines the Brexit story so far…

End of ‘Phase 1’ of the negotiations

The week commencing 4 December was full of political ups and downs, with everyone waiting with baited breath for the outcome of the last-minute negotiations that would conclude ‘phase 1’ of the Article 50 talks between the UK and the EU. Although it had seemed that the ‘divorce bill’ and citizens’ rights would be the most contentious issues, the question of the border between the Republic of Ireland and Northern Ireland became the discussion that risked derailing the talks.  

Ultimately, a form of words was chosen that suited all parties:  The Republic of Ireland Government, the DUP, the Commission and Eurosceptic Conservatives. The practicalities of the border question are still unresolved, but what that week’s debate did highlight is just how contentious – and critical – the question of regulatory alignment with the EU will be in 2018.

On the other issues, the UK has, as expected, agreed to a more significant financial contribution; on citizens’ rights, there was a much-needed confirmation that the rights of UK citizens residing in the EU before 29 March 2019, and EU citizens residing in the UK before that date, will be protected.

What happens next?

It is important that the joint statement indicated the need for a start to talks on the transitional arrangement. The British Chambers of Commerce, together with the Chamber network will continue pressing for the transition to be confirmed as soon as possible:  a positive signal, a stronger commitment, early in 2018, is necessary for business certainty.

Our expectation is that this will form the bulk of the discussions in the first quarter of next year, prior to the next EU Council Summit on 22-23 March 2018. Then, slowly but (hopefully) steadily, talks on the future trade relationship will begin. However, we should not get too excited yet: these are not yet the trade talks – but are rather the talks about the talks (agreeing on a framework relationship, with details to be ironed out later).  

And the Cabinet will finally need to debate and take a collective stance on the kind of regulatory relationship it would like to see with the EU going forward – with the backdrop of various sector groups (such as for pharmaceuticals and aviation), calling for close regulatory alignment and full participation in various agencies.

What the Chamber network is focusing on now

In 2018, the BCC and Chamber network’s approach will remain pragmatic, practical and apolitical.  In addition to pressing for a transitional arrangement deal as soon as possible (the BCC has already joined forces with national Chambers of Commerce from Ireland, Germany, France, Denmark, the Netherlands and Belgium to do just that), we will be exploring potential options for regulatory alignment/divergence with the EU, stressing the importance of maintaining existing market access benefits via the existing EU Free Trade Agreements (which is not as done a deal as it may seem), as well as staying closely engaged in consultation on the UK’s future immigration system.

For any questions about Brexit and the potential impact on your business, our International Trade Team is here to help.  Please contact Julie Austin on Tel: 01603 729 706 or email: Julie.austin@norfolkchamber.co.uk 

The Department for International Trade (DIT) has revealed that recent talks between UK and Taiwanese officials have resulted in agreements to establish new trade dialogues on agriculture and energy.

With Taiwan planning to increase its renewable energy production from 4% to 20% of supply by 2025, largely via offshore wind farms, British companies could benefit from the opportunities presented by the expansion.

In agriculture, the new dialogue could boost the prospects of UK pork farmers, as Taiwan is the largest per capita pork consumer in Asia and Taiwan has confirmed that it wishes to lift its current ban on British pork as soon as possible.

“With its vibrant economy and thriving consumer base, Taiwan presents huge opportunities for British companies to strengthen our trade links,” International Trade Minister Greg Hands said.

British exports to Taiwan have grown by 21% in the last five years, he added, with service sector exports having increased by 60% over that time. In 2016, bilateral trade between the two countries was worth £5.35 billion.

During the talks, the two sides also signed an agreement which will make it easier for UK and Taiwanese businesses in biotechnology and pharmaceutical fields to protect their intellectual property.

In addition, ministers agreed to deepen links between the UK and Taiwan’s financial sectors, in particular by enabling the UK to offer its expertise in financing renewable energy projects and FinTech development in Taiwan.

After the meeting, Taiwan’s Vice Minister of Economic Affairs, Mei-Hua Wang, said: “As the UK leaves the EU, Taiwan looks forward both to strengthening bilateral trade flows and to expanding mutual co-operation.”

Taiwan has confidence in the British economy and considers the UK one of the priority destinations for Taiwanese investment in Europe, he added.