Skip to main content

Chamber News

Beating the drum for UK trade and investment

The Department for International Trade (DIT) has launched a new international trade and investment initiative. Described as the country’s largest campaign of its type, it aims to highlight opportunities for exporters and investors across the UK.

Particularly targeting international businesses and governments, the campaign is intended to highlight the UK’s creativity, expertise and innovation, and to showcase the country as a leading investment and business destination.

This is especially the case, DIT suggests, in the financial services, life sciences and sustainable energy sectors.

Building on the longstanding GREAT Britain campaign, the initiative will see advertisements placed in a variety of locations and media, including international airports (Hong Kong, New York, Dubai and others) and business publications (The Economist,ForbesandBusinessweek).

Three countries will be the main focus for the investment element of the campaign: the USA, Germany and China. While also targeting those three, the trade campaign will add Japan to the list of priority countries.

Launching the campaign, the Secretary of State for International Trade, Dr Liam Fox, said that theGREAT websitewill help more foreign companies tap into the wealth of British business opportunities and will provide them with all the advice and guidance needed to break down barriers to trading with the UK.

The website also features a searchable directory of British exporters. This “Find a Supplier” tool is intended to help international businesses to find trade partners in the UK.

In addition to promoting the UK as an investment and trade destination, the website also offers information for prospective students and tourists.

Full steam ahead for UK manufacturers

Optimism is rising among UK manufacturers, the latest quarterly Industrial Trends Survey from the CBI highlights.

The survey found over a quarter (27%) of firms claiming to be more optimistic about the general business situation than they were three months ago. With 12% of respondents saying they were less optimistic, the balance of +15% was the highest recorded by the survey since January 2015.

Based on responses from 461 manufacturers, the survey reveals that, during the three months to January, the volume of domestic orders rose at the fastest pace seen since July 2014.

It also found that export orders continued to grow, but at a lower rate than firms had anticipated.

Overall, demand is expected to grow strongly over the coming quarter, driven by both domestic and export orders, with production also expected to increase.

Commenting on the findings, CBI Chief Economist Rain Newton-Smith said: “UK manufacturers are firing on all cylinders right now with domestic orders up and optimism rising at the fastest pace in two years.”

She pointed out, however, that although the weaker pound is driving export optimism for the year ahead, it is also having a detrimental impact on costs for firms and will ultimately hit consumers.

Access to skilled labour was highlighted as a growing concern for businesses, with almost a quarter (24%) of respondents citing it as a factor likely to limit output in the coming months. That was the highest proportion recorded since July 1989.

Looking ahead, the next quarter is expected to see a rise in total new orders (+18%), with a balance of +14% of respondents expecting domestic orders to increase and +17% saying they think export orders will rise.

Chamber Members Question the Region’s MPs

On Friday 3 February over 150 Norfolk businesses arrived at Holiday Inn Norwich North for an afternoon of debate and discussion with five of Norfolk’s MPs.

Sponsored by Norse, Greater Anglia and Holiday Inn, the event returned for its seventh year with MPs Sir Henry Bellingham – MP for South West Norfolk, Richard Bacon – MP for South Norfolk, George Freeman – MP for Mid Norfolk, Keith Simpson – MP for Broadland and Norman Lamb – MP for North Norfolk. This year’s event host was Carole Walker, BBC Political Correspondent and ‘Norfolk gal’.

The afternoon was split into two sections, covering a range of key topics affecting Norfolk’s business community. The first section saw Norman Lamb, Richard Bacon, George Freeman and Keith Simpson covering revolution in technology. The discussion saw cyber-crime, broadband, mobile and of course Brexit covered by a mixture of interview style with audience questions.   

Following this, our agenda lead to a tea break for delegates and MPs to get refreshed and enjoy platters of afternoon tea provided by the venue.

As the event resumed, members had the chance to hear from Brandon Lewis – MP for Great Yarmouth, in a pre-recorded video message. Brandon highlighted key growth in his constituency with the Great Yarmouth River Crossing development, and spoke of how Brexit must now become an opportunity for the UK. 

Both Richard Bacon and George Freeman returned to the stage along with Sir Henry Bellingham and Jamie Burles, Managing Director of Greater Anglia for part two of the event. Infrastructure was the main topic of questions as we heard about the A47, rail, air travel and once again the implications of Brexit.

Norfolk Chamber’s Chief Executive, Caroline Williams said: “Recently, Norfolk has become more visible to Westminster. The Norfolk Chamber has been influential in securing audiences with key politicians, at national level, and giving the region the opportunity to have its business voice heard. This was a great opportunity to hear from and be heard by some of Norfolk’s most influential people.”

The afternoon provided both members and MPs with plenty of thought. 

Photographs from the event are available to view here – Photos by Paul Harrison Photography

Chamber International Trade Survey: Fall in Sterling expected to increase cost base and push up prices

The recent fall in the value of Sterling is squeezing domestic sales margins, and increasing the cost base of UK businesses, according to the results of the British Chambers of Commerce’s (BCC) latest International Trade Survey. The findings, released today (Monday), also indicate that the weak pound is expected to push up the prices of products and services.

The results of the survey, run in partnership with moneycorp and based on the responses of nearly 1,500 surveyed businesses, indicate that the recent devaluation of Sterling is having a negative impact on the domestic sales margins of nearly half of businesses (44%). The effect is more diverse on export margins, with roughly equal levels of businesses reporting a positive (25%) and negative (22%) impact, suggesting that while the fall in value of the pound may be helping some UK exporters, it’s also hurting others.

The survey also found that 68% of businesses expect the fall in the value of Sterling to increase their cost base in the coming year. In turn, over half (54%) of companies expect to have to increase the prices of their products and services over the next 12 months.

Away from prices, the findings also show that nearly half of businesses (45%) do not currently manage currency risk. For those that do, invoicing in Sterling instead of their customer’s local foreign currency (32%) was the most popular means, followed by opening a foreign currency bank account to deal with sales and purchases in the same currency (16%), and waiting for an advantageous rate and buying using the spot market (14%). The same number of businesses (46%) don’t expect to manage their currency risk in the next six months.

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

“The depreciation of Sterling in recent months has been the main tangible impact that Norfolk firms have had to grapple with since the EU referendum vote.

“Our Chamber research shows that the falling pound has been a double-edged sword for many Norfolk businesses. Nearly as many exporters say the low pound is damaging them as benefiting them. For firms that import, it’s now more expensive, and companies may find themselves locked into contracts with suppliers and unable to be responsive to currency fluctuations.”

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

 “Our survey shows that inflation is going to be an important concern for businesses over the coming year. While inflation rates aren’t high by historical standards, they are still putting increasing pressure on companies. Rising costs are squeezing margins, and forcing many firms to increase the prices of their goods and services.

“Currency fluctuations aren’t something in the UK government’s direct control, and they are likely to continue as the Brexit transition unfolds. Ministers must do everything in their power, meantime, to help businesses keep costs down and stay competitive. Alleviating many of the up-front costs facing companies should be a priority for the Budget in March – starting with the sledgehammer of business rates.”

Lee McDarby, Managing Director of UK Corporate International Payments at moneycorp, said:

“The post referendum fall in sterling has clearly had an impact on many UK businesses and, as hedging begins to expire, importers and exporters will have to adapt to the new landscape. For exporters, the move potentially allows for greater competitiveness on an international level; however, importers may now have to think of new ways of protecting their businesses from further volatility.

“The timeframe for stepping away from the European Union is long, with at least two years of negotiation as and when Article 50 is triggered; this means that companies will have to be nimble and proactive when it comes to managing foreign exchange exposure.

“The key events of 2016 have certainly caused market uncertainty and there are no signs that this will subside in 2017. On that basis we are definitely engaging more with new and existing clients who are turning to FX specialists such as moneycorp for support and assistance when it comes to managing their currency risk.”

Chamber looks at roads and rail

At a recent meeting of the Chamber’s Transport & Infrastructure Group, the members reviewed both road and rail transport.

Jonathan Denby, Greater Anglia’s Head of Corporate Affairs provided an update on the Greater Anglia Rail Franchise and what it planned to deliver over the duration of its 9 year franchise. He gave an overview of what the new transformational franchise aimed to achieve, including the replacement of the entire fleet with new rolling stock and an outline of the infrastructure needed to ensure the success of the Great Eastern Mainline.

The group also reviewed Highway England’s discussion paper on their emerging strategic economic growth plan. The group were concerned that several key income generating sectors did not appear to have been taken into account when considering the areas of Highway England’s research. The agricultural sector was not mentioned, yet Norfolk is one of the largest food producers in the UK. Additionally there wasn’t a map of showing regional GDP, which Chamber Group felt would be an essential perspective in assessing how the road network should support various regions.

Nova Fairbank, Public Affairs Manager for Norfolk Chamber said:

“A formal submission was made via the Highways England online consultation, but I also had the opportunity to highlight our views at a subsequent meeting, in London together with the British Chambers, where I was able to directly feedback to Elise Lewis, the Divisional Director for Strategy & Planning at Highways England. Ms Lewis advised that the consultation document was a condensed version and the points we had made had already been taken into account. We await the final publication in Spring 2017.”

The next meeting of the Transport & Infrastructure Group will be held on 10 April.

Norfolk Chamber seeks magazine publisher

The contract to supply the design, editing, printing and distribution of the Norfolk Chamber’s bi-monthly magazine, the ‘Norfolk Voice’ is coming up for renewal for May 2017. The contract is now out to tender amongst the Chamber membership.

For more information and to receive a copy of the tender documents, please contact Jack Edwards on Tel: 01603 729 710 or Email: jack.edwards@norfolkchamber.co.uk . Please note you will need to be a member to be considered.

The closing date for receipt of completed bid proposals is Friday 10 March 2017.

No Holly Lane closure this evening

Holly Lane, a well-used link between the B1149 Holt Road and Reepham Road, will remain open as normal tonight (Tues 31st) after gas main diversionwork was completed last night (Mon 30th).

The closure was originally scheduled for both Monday and Tuesday nights. The diversion of gas mains and other utility servicesis needed to allow construction of Norwich Northern Distributor Road.

UK strengthens trade links with Ukraine

Hutchison Ports, which owns and operatesthe UK ports of Felixstowe and London Thamesport, has signed a Memorandum of Understanding (MoU) with the Government of Ukraine for the development of Chornomorsk Port on the Black Sea.

The MoU was signed by Volodymyr Omelyan, the Ukrainian Minister of Infrastructure, during a recent visit by the Minister to the Port of Felixstowe.

Clemence Cheng, Managing Director of Hutchison Ports Europe, said: “We are delighted to sign this Memorandum of Understanding with the Government of Ukraine to develop container terminal facilities at Chornomorsk.”

He said that Hutchison has long seen the potential for growth in container business in Ukraine and that he looked forward to working together with the Ministry of Infrastructure to realise a shared aim of developing world class port facilities to facilitate trade.

Expressing his delight that the world’s leading port operator had decided to enter Ukraine’s maritime market, Mr Omelyan said that his Government was committed to finalising the agreement and to closing the deal in 2017.

Chornomorsk is one of the largest ports on the Black Sea handling a range of cargo including containers, ferries, general and bulk cargoes.

Situated in the south-western region of Ukraine 20km south of Odessa, the port has established rail connections to the capital Kiev and has a skilled workforce already in place.

Sri Lanka offered trade incentives

Import duties on Sri Lankan products entering the EU could be removed, but only if the country implements reforms on human rights, the environment, the rule of law and governance.

Under proposals made by the European Commission, duties would be removed on 66% of tariff lines, covering a wide array of products including textiles and fisheries.

The removal of customs duties would, however, be conditional on Sri Lanka’s ongoing commitment to ratify and effectively implement 27 international conventions on a range of issues including labour conditions and environmental protection.

Accounting for nearly a third of Sri Lanka’s global exports, the EU is Sri Lanka’s largest export market with total bilateral trade amounting to €4.7 billion in 2015.

Goods exported from Sri Lanka to the EU were worth €2.6 billion, with the most significant being textiles, rubber products and machinery.

The Commission’s proposal would see the EU initiate a special version of the EU Generalised Scheme of Preferences. Known as GSP+, the arrangement is designed to support developing countries by fostering their economic development through increased trade with Europe and providing incentives to take tangible steps towards sustainable development.

Eight countries currently benefit from GSP+ agreements: Armenia, Bolivia, Cape Verde, Kyrgyzstan, Mongolia, Pakistan, Paraguay and the Philippines.

Announcing the latest initiative, Trade Commissioner Cecilia Malmström said that GSP+ preferences could make a significant contribution to Sri Lanka’s economic development by increasing exports to the EU market.

Following the Commission’s proposal, the European Parliament and the Council have a maximum of four months to raise objections before the measures take effect.

Good news in what could be a bad year for the WTO

Nigeria has ratified the Trade Facilitation Agreement (TFA), making it the 107th member of the World Trade Organization (WTO) to do so and meaning that only three more ratifications are needed to bring the TFA into force.

The Agreement, which will apply to all 164 WTO members, is expected to change customs procedures in a way that will help small businesses access new export opportunities.

It has two significant sections, with section I containing provisions for expediting the movement, release and clearance of goods, including goods in transit. It clarifies and improves the relevant articles (V, VIII and X) of the 1994 General Agreement on Tariffs and Trade (GATT) and sets out provisions for customs co-operation.

Section II concerns special and differential treatment (SDT) provisions allowing developing and least developed countries (LDCs) to determine when they will implement individual provisions of the Agreement.

WTO Director-General Roberto Azevêdo welcomed Nigeria’s initiative but used the occasion of a speech to the World Economic Forum in Davos to warn of a potential rise in protectionism around the globe.

His speech came on the same day as Donald Trump was sworn in as President of the USA with an address in which he made plain his trade policy for the next four years.

He said: “Every decision on trade, on taxes, on immigration, on foreign affairs, will be made to benefit American workers and American families. We must protect our borders from the ravages of other countries making our products, stealing our companies, and destroying our jobs. Protection will lead to great prosperity and strength.”

Cities Outlook 2017 – 58% of Norwich Exports go to the EU

The Cities Outlook 2017 report has been published today. The report is an annual health-check on UK city economies, with a focus this year on where British cities sell exports across the globe in the context of the Brexit vote.

It highlights that every UK city is critically dependent on EU markets for exports, highlighting the vital importance of securing the best possible EU trade deal. Norwich sold 58% of its exports to the EU in 2014 – well above than the British national average (48%), and significantly higher than the city’s exports to the US (13%) and China (2%). Ipswich is among the least reliant cities on EU markets, but still sold 31% of its exports to EU countries – far exceeding its exports to the US (16%) or China (5%)

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

The Cities Outlook2017 highlights that many Norfolk businesses are already exporting overseas, with 58% of Norwich businesses stating that they exported into Europe in 2014. Exports to the rest of the world is also strong. At present our International Department is processing an average of 400 export documents per month for goods going outside of the EU, with a goods value of over £7.6m.

The UK’s decision to leave the EU will impact on the rules and regulations of how to export into Europe. Norfolk businesses will be considering what emerging markets they can access as well as Europe. It is easier than you think to export on a worldwide basis and Norfolk Chamber should be your first point of call to get expert advice and support.”

Members Strike at Largest Norfolk Chamber Super Bowl Challenge.

180 delegates joined us on the evening of Thursday 26th January at Hollywood Bowl for our annual Super Bowl Challenge.

Taking up 25 of the lanes at Hollywood Bowl Norwich, our members came out in force ready to battle for the Super Bowl Trophy. The evening was filled with plenty of laughter and networking between the lanes and teams were made up from company staff or mixed company teams.

This year Hollywood Bowl ran the ‘Pink Pin Challenge’ following its huge popularity and winnings from 2016. This year proved to be no different as delegates bowled for strikes to knock down their pink pins, winning a bottle of bubbly per strike on the pink pins.

After all the bowling action our teams tucked into a buffet provided by the staff and Hollywood Bowl, and it was time to announce the awards and winners.

This year our ‘most stylish bowler’ award went to Shane Whiley of Mayday OES Ltd for being both quick and slick on the lanes. Our highest scorer of the night, James Allen from Leathes Prior who scored an impressive 206, helped by the fact he bowled 5 strikes in a row!

Finally our team winners for the evening, helped by the impressive bowling of James Allen, were Leathes Prior! With a small team of four they bowled big to take home the Super Bowl Challenge 2017 trophy. Unfortunately, it was team Chamber who came last out of all 25 teams.

We hope to see even more delegates at 2018’s Super Bowl, save the date of Thursday 25 January 2018 and get practising!

Our next After Hours event is our John Lewis Beauty Evening! Round up your colleagues on Thursday 2nd March and join us for a glass of fizz at our VIP Beauty event at John Lewis Norwich. For more information, please visit the event page.