Chamber News

London’s major port has recently been awarded an internationally recognised quality mark and been accepted as an Authorised Economic Operator (AEO) by HM Revenue & Customs (HMRC).

Tilbury is the first multipurpose port in the UK to receive full AEO status for security and customs simplification processes. This recognises that the customs controls and procedures at the port are efficient and compliant and most importantly, secure.

Commenting on the award, Paul Dale, Asset and Site Director at the Port of Tilbury said: “This is excellent and significant news as we are the first multipurpose port in the UK to be recognised with full AEO status. We have always provided an efficient and secure process, but this accreditation also gives our customers the reassurance that we have robust processes in place.”

The accreditation follows a full site audit at the port by HMRC which thoroughly reviewed the port’s operational processes, IT, security, storage, procurement and HR procedures.

Charles Hammond, Chief Executive of Forth Ports, owners of the Port of Tilbury said: “We are thrilled that the Port has been awarded full AEO status. As the UK moves towards Brexit, this internationally recognised award is extremely positive for both the port and our diverse customer base who will continue to benefit from working with us under this quality accreditation.”

The AEO regime operates under the EU’s Union Customs Code and is administered in the UK by HMRC. AEO status gives quicker access to certain simplified customs procedures and in some cases, the right to fast-track shipments through some customs procedures.

A group of organisations have banded together to warn that thousands of jobs could be lost after the UK leaves the EU unless action is taken to prevent dumped products flooding into this country.

With responsibility for so-called trade remedies shifting from the European Commission to the British Government, a post-Brexit UK could be left defenceless against unfair competition from abroad.

The group of 10 organisations (including UK Steel, British Glass and two trade unions, GMB and Unite) is attempting to persuade the political parties to address the issue in their election manifestos.

A position paper published by the seven manufacturing trade associations and three trade unions sets out the actions needed to establish a trade defence mechanism for the UK.

It calls for a Bill in the first Queen’s Speech to adopt all of the trade remedies allowed by the World Trade Organization (WTO): anti-dumping measures, anti-subsidy measures and safeguarding measures.

The new Government should, the paper argues, ensure that new UK trade remedies are adequate to fully alleviate market injury to UK manufacturing and that they are available immediately after Brexit.

It sets out a number of steps that the organisations believe would help ensure the effectiveness of a new trade remedies system, including having a well-resourced single unit within the Department for International Trade (DIT) to investigate trade complaints.

Separate teams within the unit should deal with different aspects of cases concurrently and quickly.

Speaking for the British Ceramic Confederation, Dr Laura Cohen explained that, after years of contraction partly due to dumped imports from China, EU measures have helped the sector to stabilise, invest and employ more people.

“We need a UK system that can tackle the unfair distortions that disrupt real free trade,” she said.

The Future of UK Trade Remedies is available here.

Commenting on the inflation statistics for April 2017, released today by the Office for National Statistics, Suren Thiru, Head of Economics at the British Chambers of Commerce (BCC), said:

“As expected, inflation resumed its upward trend in April, after holding steady in March. April’s increase was largely due to higher air fares, which were pushed up by the timing of Easter falling during the month.

“While factory gate costs have moderated a little in recent months, businesses continue to report that the substantial increases in the cost of raw materials and other overheads over the past year are still filtering through the supply chain, and are therefore likely to lift consumer prices higher in the coming months. Our own Quarterly Economic Survey confirms that the pressure on firms to raise prices remains significant. Higher inflation is likely to be a drag on UK GDP growth over the coming quarters, as it erodes consumer spending power and dampens business activity and investment.

“However, it remains probable that the current period of above target inflation is transitory in nature, with little evidence that higher price growth is becoming entrenched in higher pay growth. This should give the Bank of England sufficient scope to keep interest rates on hold for some time yet, despite their recent warning.

“Nonetheless, with the UK economy entering a weaker period as inflation continues to bite, more must be done to support growth and investment, including addressing the mounting burden of up-front taxes and costs faced by firms.”

Commenting on various Labour and Conservative proposals on worker’s rights, Nova Fairbank, Public Affairs Manager for Norfolk Chamber said:

“There is little appetite within the Norfolk business community for a roll-back of employment rights.  Businesses worry about the prospect of costly or bureaucratic new obligations, no matter how well-intentioned.

“Norfolk Chamber will watch closely as more detail emerges on the various proposals, to ensure that they do not give rise to expensive new obligations or unintended consequences – especially for the thousands of civic-minded local businesses who already do everything in their power to engage, support, train and reward their workforce.

“In the past, we have seen campaign-season promises on workplace rights create unrealistic expectations, and undermine relationships that have been painstakingly built up between firms and employees over many years. That must not be allowed to occur if some, or all, of these proposals become the law of the land.

“Some of the headline propositions in the Labour Party manifesto will give business communities across Norfolk real cause for concern. High personal taxation, sweeping nationalisation and deep intervention in business decision-making are not the hallmarks of an ambitious and enterprising society.  However, there are some bright spots in Labour’s manifesto, notably clear and specific commitments to reform Britain’s broken business rates system, which successive governments have failed to implement.

Commenting specifically on the proposals to increase the national minimum wage which is proposed by both Conservative and Labour, Mrs Fairbank said:

“Low pay and low social mobility are a challenge to the Norfolk economy, but they won’t be solved just by driving up wage rates. The best way to get a high-wage economy is through better education, training, and investment, by schools, universities and businesses alike.”

“Whilst many companies would have the ability to increase pay, others would struggle to do so alongside pensions auto-enrolment, the apprenticeship levy, employer National Insurance contributions, and other up-front costs. Some may have to divert money from training and investment to increase pay, which could hurt their productivity. Others may stop hiring altogether.”

Commenting on the Lib Dem promise of £100-a-week for budding entrepreneurs

“Promising budding entrepreneurs an £100-a-week allowance to help with living costs is welcomed, as it will help support start up and entrepreneurial businesses, however these businesses still face many up front costs and taxes, including business rates.

“Norfolk Chamber believes that fundamental change to the business rates system is needed, including stripping plant and machinery from rates assessments that does so much to discourage business investment.  We would call on a future government to re-visit the detail of reform package previously discussed to address the serious concerns business ratepayers have, and as an interim fix the appeals system which is no longer fit for purpose.”

The National Cyber Security Center (NCSC) are offering advice to businesses following the coordinated ransomware attack on thousands of private and public sector organisations on Friday.

MESSAGE FROM NATIONAL CYBER SECURITY CENTRE (NCSC) “Since the global coordinated ransomware attack on thousands of private and public sector organisations across dozens of countries on Friday, there have been no sustained new attacks of that kind.  But it is important to understand that the way these attacks work means that compromises of machines and networks that have already occurred may not yet have been detected, and that existing infections from the malware can spread within networks.

This means that as a new working week begins it is likely, in the UK and elsewhere, that further cases of ransomware may come to light, possibly at a significant scale.

Our national focus must therefore be on two lines of defence.

The first is to limit the spread and impact of the attacks that have already occurred.  Due to broad government and partner efforts, a variety of tools are now publicly available to help organisations to do this.  This guidance can be found on our homepage – ncsc.gov.uk – under the title Protecting Your Organisation From Ransomware: https://www.ncsc.gov.uk/guidance/ransomware-latest-ncsc-guidance 

We know already that there have been attempts to attack organisations beyond the National Health Service. It is therefore absolutely imperative that any organisation that believes they may be affected, follows and implements this guidance. We have set out two pieces of guidance: one for organisations and one for private individuals and SMEs which can be applicable regardless of the age of the software in question.  It will be updated as and when further mitigations become available and we will announce when updates have been made on Twitter (@ncsc) and elsewhere.

Secondly, it is possible that a ransomware attack of this type and on this scale could recur, though we have no specific evidence that this is the case.  What is certain is that ransomware attacks are some of the most immediately damaging forms of cyber attack that affects home users, enterprises and governments equally.

It is also the case that there are a number of easy-to-implement defences against ransomware which very considerably reduce the risk of attack and the impact of successful attacks.  These simple steps to protect against ransomware are not being applied by either the public or organisations as thoroughly as they should be.

Three simple steps for companies to undertake which are also set out on our website (https://www.ncsc.gov.uk/guidance/protecting-your-organisation-ransomware) and can be summarised as follows:

1. Keep your organisation’s security software patches up to date
2. Use proper anti-virus software services
3. Most importantly for ransomware, back up the data that matters to you, because you can’t be held to ransom for data you hold somewhere else.

Home users and small businesses can take the following steps to protect themselves:

1. Run Windows Update
2. Make sure your AntiVirus product is up to date and run a scan – If you don’t have one install one of the free trial versions from a reputable vendor
3. If you have not done so before, this is a good time to think about backing important data up – You can’t be held to ransom if you’ve got the data somewhere else.

In the days ahead, the NCSC, working closely with the National Crime Agency in support of their criminal investigation, and with international partners in both other governments and the commercial sector, will continue our round-the-clock effort to get ahead of this threat.  We would like to reassure the public that resources from the Government, law enforcement and public and private sector organisation are working together to manage further disruption from the current attack and to increase protection against any further attacks in the coming days. The country’s security and law enforcement agencies are working round the clock to protect the public. Private sector efforts have made a very significant contribution to mitigate the cyber attacks so far and to  prevent further disruption.

We will provide further updates as and when appropriate.”

Yesterday the Norfolk Chamber helped support Thetford Academy’s Your Future Careers Event where 40 businesses attended to help educate and inspire the 400 plus students that visited the exhibition.

The School Hall was brimming with a huge range of businesses who had bought along engaging activities and visuals to attract the attention of the students and help engage them with the sector of each business. The students enthusiastically decorated plasterboard at the Novus Training stand, played with Poppy the dog at the Old Golfhouse Veterinary stand and practiced resuscitation at the NHS stand. Thanks to the hard work of the school, all of the students were confident in approaching each of the stands and asked questions, hopefully sparking potential career paths in the Navy, in construction or going onto further education at Cambridge or Birmingham University.

The event achieved its aim to bridge the gap between businesses and young people in education and Norfolk Chamber were pleased to have taken part and witnessed the overwhelming support from the businesses, and the enthusiasm and positivity from the students. 

If you are interested in supporting any upcoming careers events, please email us or register your interest – click here

The next ones are:

Wymondham College – 28/06/17

Wymondham High – 3/07/2017

Hethersett Academy – 12/07/2017

(Based on April 2017 data releases)

Monthly headlines:

• UK economic growth slows in Q1 as output from consumer-focused industries weakened    
• UK consumer price inflation holds steady, but wage growth slows further  
• US GDP growth weakens as the outlook for the Eurozone continues to improve  

The UK economy grew by 0.3% in Q1 2017, slower than the growth of 0.7% recorded in Q4.  Weakening GDP growth in Q1 was mainly due to growth in service sector output, which accounts for over three quarters of UK economic output.

UK CPI inflation stood at 2.3% in March 2017, unchanged from February but still above the Bank of England’s 2% target.  Rising prices for food, clothing and footwear were the main contributors to the change in rate.

The first estimate of US GDP revealed that the US economy, the world’s largest, grew at an annualised rate of 0.7% in Q1 2017.  This was the slowest rate of growth since Q1 2014.  The slowdown was largely driven by consumer spending, which accounts for two-thirds of US economic output.

For full details of this month’s economic review click here.

On Thursday 4th May, we were joined by over 70 members for a Pub Quiz at The Oaktree, Norwich. In teams of 6, delegates competed to be crowned Norfolk Chamber Quizmasters 2017.

We started off the evening with wine on the tables and a mixed buffet to ensure members were ready to use their knowledge.

There were four rounds including ‘Famous Places’ where delegates had a sheet with pictures of famous local places had to guess what that place was. The next round was ‘general knowledge’ which included 20 questions from a mixture of subjects. The third round was on the theme of ‘celebrity’ and the last round was based around ‘music’ members were asked various questions and had to guess the celebrity answer.

In the end, Mattioli Woods (pictured) were victorious, winning with an impressive 42 out of 52 points! With Richard Johnston Ltd coming in a very close 2nd with 39 points! 

Take advantage of our informal networking opportunities with the next After Hours Event: Cocktails and Canapes, Thursday, 15 June 2017 – 5:30pm to 8:00pm, Bond no.28 Tombland Norwich. Visit to https://sandbox.norfolkchambers.co.uk/events/after-hours-cocktail-canapes book your place. 

Businesses from across the UK are invited to compete in the fourteenth annual Chamber Business Awards – hosted by the British Chambers of Commerce (BCC).

The prestigious competition is one of the showpiece events in the business calendar, recognising and promoting the best of British business through a series of regional heats, culminating in a Gala Awards Dinner, which will take place at the Brewery, London on 30 November.

Entries open on Monday 13 March and will run until Friday 30 June. This year’s Awards are being launched at the London Stock Exchange, where last year’s winner of Business of the Year, Scientifica, have won the special honour of opening the Exchange as a prize. Next year’s winners will have the same chance to do so, a rare opportunity for a private business. 

Companies can enter nine categories, covering exports, small business, people development, technology, high-growth, customer service, partnerships with the education sector, social media, and health and wellbeing.

Francis Martin, President of the British Chambers of Commerce said:

“Businesses are the driving force of the UK economy, creating jobs, growth and prosperity, and helping Britain to maintain its reputation internationally. This is exactly why it is important for us to recognise and celebrate the contribution they make to their local communities and the wider economy.

“The broad spread of categories in the Chamber Business Awards reflects both the diversity of industries and skills of British firms, and the range of achievements and projects that they have been involved with.

“Each time I visit Chamber member businesses, it is inspiring to see so many companies finding innovative ways to grow their business in every corner of the UK. The Awards acknowledge the relentless efforts of these businesses and their talented employees.”

Adrian Corbin of Scientifica, Winner of the ‘Business of the Year’ award last year, said:

“Everyone at Scientifica is incredibly proud that the company won Business of the Year at the Chamber Business Awards 2016. It is an enormous achievement and a fitting testimony to all the hard work that has gone into creating such a great company.

“We are at the forefront of high-tech British manufacturing, exporting our products to more than forty countries worldwide. We employ a highly-educated and international workforce who are all committed to producing innovative products to help further neuroscience research, and the winning of this award will undoubtedly help us expand into even more markets around the world.”

Market Overview

The Philippines is one of the fastest growing economies in the world with an economic growth of 6.8% in 2016, and a remarkably positive GDP growth trajectory over the past decade projected at 7% by 2018. It is the second largest market in ASEAN with 103 million people, the 36th largest economy in the world (by nominal GDP) and is forecasted to become the 19th largest economy by 2030. The International Monetary Fund (IMF) recently predicted the sustained growth momentum in the country. Key drivers of growth are services sectors (i.e. real estate, manufacturing and tourism), strong domestic consumption, high remittances from Overseas Filipino Workers (OFWs) amounting to $26 billion annually and recently, the increased public spending of the government.

Opportunities

Strategically located in Southeast Asia, the Philippines is an ideal market for doing business particularly for companies that are looking to set up a regional operation. Seeing infrastructure as the bedrock of economic development, a huge opportunity lies within the infrastructure and construction sector. The government recently launched its ‘build, build, build’ campaign as it paves way towards the next six years’ “golden age of infrastructure”. British companies are encouraged to take advantage of these opportunities. Other strong sectors include information and communication technology, food and beverage (F&B), agribusiness, real estate, energy, manufacturing, pharmaceutical and healthcare.

Strengths

The Philippines takes pride in its competitive wages and highly trainable, educated and English-proficient workforce, which heightens the ease of doing business. It has strong domestic consumption and a growing middle class with high appetite for imported brands/ products. The government has a positive attitude on foreign investment/ importation, with 2016 FDI inflows amounting to $8 billion. Services sector remains the main engine of economic growth catering to international companies through its young and dynamic human capital.

For more information about opportunities in the Philippines, please contact Rona Diaz.

A surge in exports has left UK firms feeling more optimistic about selling overseas than they have in over four decades, one of the UK’s leading business groups has reported.

Export orders in the first quarter (Q1) of 2017 grew at their fastest rate in six years, while domestic orders rose more rapidly than they have since July 2014. The optimistic outlook is recorded in the latest CBI Industrial Trends Survey.

Covering the period to the end of March, the survey of 397 manufacturers shows growth in export orders rising to +22% – the highest level since the +24% reached in April 2011.

Domestic orders over the quarter rose at +20%, which was the fastest rise recorded from the +23% in July 2014.

The quarterly survey also found that, with 42% of businesses experiencing an increase in total orders and 17% reporting a decrease, the balance of +25% was the highest recorded since April 1995 (when it was +27%).

Looking ahead, growth is anticipated in total new orders (+14%), domestic orders (+7%) and export orders (+24%) over the next quarter.

However, average domestic prices (+29%), export prices (+20%) and unit costs (+41%) are also expected to rise quickly in the coming three months with the rise in unit costs being the strongest in six years.

CBI Chief Economist Rain Newton-Smith said that UK manufacturers are enjoying strong growth in demand from customers in the UK and overseas, and continue to ramp up production.

“Even so,” she added, “the combination of the weak pound and recovering commodity prices means that cost pressures continue to build, and manufacturers report no sign of them abating over the near-term.”

There is a capacity crunch in liner shipping and ship owners are not handling it particularly well, according to the European Shippers’ Council (ESC) following consultation with its members.

Earlier this year, the ESC complained that many shippers who regularly export goods to Asia have been facing a large drop of available slots for containers on almost every shipping line.

“ESC also draws the attention of the regulation authorities to the current market structure where three major alliances control close to 90% of the capacity on the major trades,” the Council said.

Following an emergency meeting requested by representatives of national shippers’ councils as well as by individual export companies, the ESC has highlighted that goods to be exported have been waiting for up to eight weeks to be loaded on ships.

Even when they are loaded, some goods from a shipment are frequently being left in the port.

Following the meeting, the ESC board of directors decided to set up a temporary observer group composed of representatives of European exporters to closely monitor the situation.

They will analyse the changes in capacity, the time of delays and the fluctuation of rates.

The ESC has said that it will meet the European Commission in a few weeks in order to present an informed view on the present crisis and to discuss strategies to prevent this from happening again in future.