Chamber News

The Norfolk Chamber’s latest apprentices attended a graduation ceremony at EPIC Studios last week. Jack Edwards, Office Assistant Apprentice and Katie Downes, Events Assistant Apprentice collected their diploma’s at a special ceremony set-up by Apprenticeships Norfolk with the support of Norfolk County Council.

Both Jack and Katie have now gone onto full-time employment at the Norfolk Chamber of Commerce.

Jack Edwards – “When I opted not to go to University, I never thought I’d have the opportunity to ‘graduate.’ I couldn’t be more grateful for being given this chance!”

Katie Downes – “It was a great honour to receive my graduation scroll and celebrate my achievement, after all the hard work that was put in.”

• BCC’s Quarterly Economic Survey is the first major economic survey of the quarter, and is closely watched by the Bank of England and the Treasury
• The results show that whilst the economy is still growing, it slowed in Q3. Manufacturing and export balances were down on the quarter.
• John Longworth says the results for domestic manufacturing and exports in this quarter may be the ‘first alarm bell’ to warn of slower economic growth, but this need not be the case

The British Chambers of Commerce (BCC) published the results of its Quarterly Economic Survey for Q3 2014 today, Thursday 9 October 2014. The survey, made up of responses from more than 7,000 businesses across the UK, shows that whilst the Norfolk economy is still growing, it slowed in Q3. Balances for both Norfolk’s manufacturing and service sector exports were down on the quarter, highlighting the challenges facing Norfolk exporters.

A decline in the rate of growth in Q3 for Norfolk’s manufacturing sector reinforces the BCC’s most recent Economic Forecast that predicted economic growth would slow leading into 2015. BCC Director General, John Longworth says the results for domestic manufacturing and exports in this quarter may be the ‘first alarm bell’ to warn of slower economic growth.

Key findings in the Q3 2014 Quarterly Economic Survey:

• For Norfolk manufacturing, two balances fell sharply in Q3 2014; domestic sales (+30%, down from +40% in Q2) and domestic orders (+34%, down from +42% in Q2). This is in contrast to three all-time high balances in Q2 2014. However these balances are still stronger than the East of England or national results.

• For Norfolk services, balances also fell steeply domestic sales (+37% down from +55% in Q2) and domestic orders (+36%, down from +48% in Q2). The Norfolk results were reflected in both the regional and national results.

• The balance of Norfolk manufacturing firms operating at full capacity nearly doubled from +17% to +34%. Whilst the number of Norfolk service firms operating at full capacity remained fairly static dipping by only 1 point to +38%. These figures bring the Norfolk results into line with the national results.

• All Norfolk export balances fell in Q3, for both exports and services; manufacturing export sales fell from +45% in Q2 to +38% in Q3, while service export sales dropped by a massive 61 points to +6%.

• Norfolk’s business confidence dipped considerably. However this brought both manufacturing profitability (+57%) and service sector profitability (+54%) in line with national results.

• The Norfolk manufacturing employment balance rose from +12% in Q2 to +31% in Q3. The balance for the Norfolk services sector employment decreased slightly from +34% to +31% over the same period.

• Both sectors reported difficulty in recruiting during this period with Norfolk manufacturers going from +48% in Q2 to +63% in Q3 and Norfolk’s service sector reporting an increase from +60% in Q2 to +67% in Q3.

• In the Norfolk manufacturing sector, the cashflow balance improved to +8%, 11 points below its last peak in Q3 2013. The service sector cashflow balance also increased by eight points to +22%, which is still lower that the previous recorded high of +29% in Q4 2013.

• The Norfolk manufacturing price balance (intentions to raise prices) increased by three points to +23%, whilst the price balance for the service sector decreased by five points to +19%.

Commenting on the results, Caroline Williams, Chief Executive of Norfolk Chamber said:

“Due to both sectors in Norfolk and the East of England reporting reduced order books for UK and overseas sales, this has resulted in a slight dip in confidence since the previous quarter’s strong results. Despite this note of caution, investment in plant and machinery and training remains constant and more manufacturers are reporting that they are operating at full capacity.”

“Recruitment remains an issue, with many organisations reporting difficulty in sourcing skilled staff. As skill shortages put pressure on existing wages, this may result in pay settlements becoming of greater concern. Both sectors are reporting that they anticipate a slow down in recruitment over the next 3 months. Inflation and interest rates have also been indicated as areas of concern for businesses in our region. Whilst the results are not as positive as the previous quarter, the Norfolk and East of England business communities will continue to strive towards economic growth and prosperity.

Commenting on the results, John Longworth, Director General of the BCC, said:

“The British economy has strengthened significantly since the recession but to say that strong growth cannot be sustained indefinitely is simply not good enough. To avoid sinking back into mediocrity we must steer clear of measures that dampen business confidence and press ahead with reforms to the business environment.

“As we predicted in our economic forecast, the strong upsurge in UK manufacturing at the start of the year appears to have run its course. We may be hearing the first alarm bell for the UK economy, but this need not be the case. The share of manufacturing firms across the UK operating at full capacity fell in Q3, signalling that there is more spare capacity in our production sector than previously thought. Concerns over the strength of the pound are also high and rising. Together with a worsening outlook for the eurozone, these factors reinforce the case against an early interest rate rise.

“The disappointing decline in exports highlights that we must do something radically different. Britain faces a major challenge in improving its trade performance, so we must waste no time in supporting trade opportunities to overseas markets which offer sustained growth. Only a concerted national campaign and sustained investment will allow more UK firms to look beyond our shores for growth opportunities.

“If we in Britain are serious about promoting business investment we must remove some longstanding barriers. Access to growth finance for small, ambitious firms remains insufficient. The business rates firms pay are the highest in Europe and a major disincentive for investment. We are calling on the government to freeze business rates for all companies until 2017’s planned full revaluation of premises, and perform a review and reform of the broken business rates system by 2022.”

David Kern, Chief Economist at the BCC said:

“These results point to continued UK economic growth, but the pace is easing. The signs of the slowdown are particularly noticeable in manufacturing, where all the key domestic and export balances recorded declines in Q3. The multiplier effects of a rise or fall in industrial production are important, not least for those regions of the UK whose traditional dependence on manufacturing industries remains high.

“Services remain more resilient than manufacturing, but there were disappointing declines in the service export balances between Q2 and Q3 2014. In contrast the Q3 results are positive for employment, cashflow and business confidence.

“Noticeable falls in all the export balances and increased signs of slower growth require a forceful policy response. UK growth cannot rely permanently on consumer spending, and on unsustainable current account and budget deficits. Unless exports and investment play a bigger role in growth, the recovery will stall.

“With inflation well below target and with earnings still rising annually by less than 1pc, it is clearly unjustified to endanger the recovery with a premature increase in official interest rates. To sustain growth, the MPC must reassure businesses that rates will only start edging up if and when objective circumstances require such a move. On its part, the Government must strengthen support for exporters and improve access to finance for growing businesses.”

In the build up to the B2B Exhibition we have created an event supplement to whet your appetite ahead of Wednesday.

If you didn’t pick up a copy of the supplement in today’s Eastern Daily Pressyou can download theelectronic version.

The supplement features the many reasons to visit the region’s premier business to business exhibition on Wednesday 15 October at Norwich City Football Club.

Make sure you’re there with;

• over 80 outstanding exhibitors
• face to face networking
• expert bitesize sessions
• exclusive ‘on-stand’ promotions.

Book your FREE advance tickettoday and to be entered into a prize draw to win one of four £25 Jarrold Gift cards.

Download the supplementhere.

Commenting on the manufacturing and industrial figures published today by the ONS, Caroline Williams CEO Norfolk Chamber of Commerce said:

“Year on year growth for manufacturing and total industrial output is satisfactory, but the more recent figures show clear signs of a slowdown. Manufacturing output eased between the first and second quarters of 2014, and the most recent figures show flat growth over the past three months – which points towards a further reduction for the third quarter of the year.

“Total UK GDP is now 2.7% above its pre-recession level, manufacturing output is still more than 4% below its pre- recession level. The sector has maintained much of its skills base during the downturn, however, manufacturing exporters are facing many challenges in the face of weak demand in the euro zone and a sterling exchange rate, which has recorded net rises over the past year. The manufacturing sector is now just over 10% of the total UK economy. It is still a very important driver of innovation export and investment, and its success remains crucial to a balanced UK recovery.”

• Manufacturing output in the three months to August 2014: Flat compared with the previous three months, but up 3.3% compared with the same period the year earlier
• Total industrial production in the three months to August 2014: Flat compared with the previous three months, and up 2.0% compared with the same period a year earlier

https://www.ons.gov.uk/ons/rel/iop/index-of-production/august-2014/index….

Commenting on the announcement that the European Commission has given the new nuclear power plant at Hinkley Point in Somerset EU state aid approval, Caroline Williams CEO Norfolk Chamber of Commerce said: “After months of uncertainty, businesses will be relieved to know that the nuclear power plant at Hinkley Point has finally been given the green light.”

“The new nuclear plant will bring supply chain opportunities to local businesses in Somerset but also in Norfolk where there is already considerable expertise gained from working on Sizewell B. This decision is a major milestone in the move to get the same approval for Sizewell C which will bring considerable economic benefit and jobs to Norfolk and Suffolk. “

John Longworth, Director General of the British Chambers of Commerce (BCC) said: “While there are clearly many positives to talk of, we mustn’t forget the fact that delays, caused by indecisive governments, has been at the public expense. All parties must stop using energy policy as a political football, and instead work towards adopting a comprehensive, long-term strategy to guarantee the security of energy supplies.”

The agreement for Hinkley Point C

The Commission found that the long-term contract (Contract for Difference) and the guarantee constitute an appropriate and proportionate way for the UK to meet its need for secure, low carbon energy. The Commission’s decision leaves the key elements of last October’s agreements unchanged whilst it has reinforced measures designed to share potential future benefits with customers.

• The “strike price” for Hinkley Point C remains set at £92.50/MWh or £89.50/MWh if the planned power station at Sizewell goes ahead
• The contract will last for 35 years
• The strike price is fully indexed to inflation through the Consumer Price Index
• The project will be protected from certain changes in law

As proposed in October 2013, the Contract for Difference already contained a series of “gainshare” mechanisms in which customers would benefit if the project construction costs or equity returns were more favourable than forecast. The Commission, the UK Government and EDF have accepted reinforcement of the “gainshare mechanisms” in the package today approved by the Commission. EDF Energy has also committed that electricity from the proposed power station will be sold at market price and recorded separately from EDF Energy’s other electricity production. EDF has agreed that the fee for the Government’s proposed Guarantee of project debt be paid at commercial rates. The agreed guarantee fee delivers the equity return required by investors.

EDF chairman and CEO Henri Proglio said: “The approval by the European Commission is a major milestone for the Hinkley Point C project. Now EDF and partners have to finalise the agreements needed to reach a final investment decision. Building EPR reactors in the UK will provide huge benefits for both countries in terms of job opportunities, economic growth and skills, further strengthening France and United Kingdom fruitful partnership.”

EDF Energy Chief Executive Vincent de Rivaz said: “The approval of the European Commission demonstrates that the proposed package of agreements between the Government and EDF is fair and balanced for investors and consumers now and for the long term. “The Commission rigorously examined the costs of the project in detail, potential returns for investors and benefits for customers. The engagement with Brussels was thorough, demanding but constructive.”

Two Norfolk buildings in the East of England have been nominated for the Prime Minister’s Better Public Building Award, which will take place on Wednesday 8 October in London.

The British Construction Industry Awards are the industry’s ‘Oscars’ for all round excellence in construction. The principal aim of these awards is to recognise excellence in its broadest sense – the overall design, construction and delivery of buildings and civil engineering projects. The Prime Minister’s Better Public Building Award is the pinnacle of this awards ceremony.

The Norfolk shortlisted buildings are exceptional examples of British construction projects:

Building 57 (The Julian Study Centre), University of East Anglia (UEA)

• Despite its humble appearance, Building 57 is an ambitious structure. Building 57 is a quality project that has exceeded expectations and demonstrated a sustainable approach that is scalable to other buildings.
• UEA has said, without hesitating this is the lowest carbon building on campus. In the long term this building will provide a space that continues to meet the needs of the university whilst also continuing to address the needs of society in relation to carbon dioxide emissions.

Creative Arts Building, City College Norwich

• The building supports the college’s vision to deliver outstanding and innovative creative arts provision, with three purpose-built floors for performing arts rehearsal spaces, digital arts, and traditional art and design including fashion. Its strong and pure architectural frame means that it can absorb these transient and messy activities well.
• The ground floor of the building is largely glazed in order to promote transparency, allowing views towards each of the diverse activities and through the dance studio, to the garden beyond.

The judging of the award marks the projects against the key reform priorities of the Government Construction Strategy, ensuring fair payment, efficient supply chain integration, efficient procurement processes, sustainability, safety and performance against milestones, practises can be shared and re-used.

The judges will assess each nominee in terms of:

• High quality design
• Efficient procurement
• Economic and social value
• Collaborative working between client, designer and contractor
• Sound financial management
• Whole-life value for money
• Sustainability

Caroline Williams, Chief Executive Norfolk Chamber of Commerce said: “It is fantastic that two of Norfolk’s buildings have been nominated for their excellence and we wish them every success for the awards ceremony in London. The Norfolk business community is striving to become more energy and resource efficient and is working in conjunction with the construction industry locally to ensure new buildings are constructed with both low carbon and sustainability in mind.”

The Chamber’s Transport, Planning and Construction Group also welcomed the news that Norfolk building projects had been nominated for their high quality design, sustainability and ‘whole-life’ value for money.

Jonathan Cage, Chair of the Transport, Planning & Development Group and Managing Director of Create Consulting Engineers said: It’s great to see sustainable architecturally interesting developments within the Norwich area being recognised in a National Arena. It clearly demonstrates in times of extreme cost awareness through every phase of the construction process that good design can still be achieved. We wish both scheme the best of luck in the awards and look forward to future Norfolk projects achieving similar recognition.”

On Friday 3 October over 40 Norfolk Chamber Members attended our business breakfast to get the unique opportunity to ask their local MP, Henry Bellingham, MP for North West Norfolk, questions on the future in their local area.

The breakfast took place in the Ballroom at Dukes Head Hotel with our host for the morning, Heather Garrod, President of the West Norfolk Chamber Council taking the delegates through the agenda.

Members heard from sponsor, The Skills Service, on the work they have been doing to get better training for young people and how businesses can help. To follow this Norfolk Chamber’s Nova Fairbank highlighted to the delegates our Business Plan for Norfolk following feedback from the membership on what they wanted to see. There is still a chance to have your say on this in our online consultation.

Breakfast and a chance to discuss what more needed to be done followed this as delegates had their chance to voice their opinion. After breakfast, Henry Bellingham gave the delegates the larger picture of what is to come for businesses.

A Q&A session then took place with various questions from delegates to better understand the opportunities and plans for the coming year.

To view photos of the event, visit our Facebook page or Google+ page

Sponsored by: Event Featured Charity:

Registered Charity Number:1062800

Commenting on the speech by Secretary of State for Business Vince Cable MP, Caroline Williams CEO Norfolk Chamber said:

“Vince Cable was right to put the economy at the heart of his speech, and issue a warning that we should not become complacent. There is no doubt that tax or cuts, or in fact both, will be needed to deal with the deficit and the growing national debt.

“It is positive to hear the Secretary of State speak of the importance of long-termisim in both business investment and in government policy. But too often in the past the rhetoric of politicians is at odds with the reality of what businesses see on the ground. Actions, not words are what count and this means sticking by an evidence-led approach to policy, not cutting across established mechanisms such as the Low Pay Commission for the minimum wage, and abiding by the findings of the Davies Commission on building new runways.

“Some of the most successful economies in the world exhibit a true partnership between business and government. Although Vince Cable touched on some critical business issues today, we will wait expectantly for the Autumn Statement in December, where we hope to see radical measures announced to support business growth in the Norfolk.”

On infrastructure:

“Vince Cable only briefly mentioned infrastructure, which is disappointing given Norfolk faces a huge infrastructure investment challenge over the next decade. Ageing road, rail and energy networks need upgrading and replacing, and more houses need to be built. While many companies rely on private investment, some sectors are heavily dependent on public investment. It is therefore important to explore new ways for the government to help finance these vital projects. We are calling on the next government to exclude borrowing for investment in infrastructure from any public debt target.

On the minimum wage for apprentices:

“Most businesses value their apprentices highly, and already pay them significantly above the apprenticeship minimum wage rate. For that reason the proposed change will have minimal impact on businesses bottom line, but it must be up to the Low Pay Commission to make evidence-based recommendations to ensure that wage rates are right for market conditions.”

On business rates:

“We would have liked to have heard more from Vince Cable on the issue of business rates in his Conference speech. British companies now pay the highest business rates in Europe which has a huge impact on investment, and ultimately jobs and growth too. We are calling on the next government to commit to a thorough review of the system and freeze rates for all businesses until 2017 when a full review is due to take place.”

The latest meeting of the Norfolk Chamber’s Representation Council was held at Barnham Broom Hotel.

The members looked at a briefing document outlining Norfolk Chamber’s ‘Business Plan for Norfolk’. The document pulled together the key priorities of the two Local Enterprise Partnerships; the British Chambers of Commerce; and Norfolk County Council and the local authorities. Both Chris Starkie, Managing Director of New Anglia LEP, and Tom McCabe, Director of Environment, Transport and Development at Norfolk County Council attended the meeting to add their input into the discussion.

The group talked about some of the key issues, including continued support for improved rail infrastructure; the energy sector; better broadband; the visibility of Norfolk; improvements to the A47 and the concept of a central brand for the East of England.

Key areas considered were businesses competitive advantage; value for money; Norfolk’s proximity to London and Europe; quality of life; and the need to ensure Norfolk’s key selling points are visible to the rest of the UK and overseas.

Over the next few months the Norfolk Chamber will survey the different areas of Norfolk’s business community to ensure that all their main priorities have been taken into consideration in the Chamber’s Business Plan for Norfolk. The West Norfolk business survey was undertaken in September/October and other areas will be surveyed shortly.

Ian Hacon, President of Norfolk Chamber of Commerce said “Norfolk Chamber is keen to ensure that the outside perception of Norfolk is that we are ‘open for business’. The Norfolk business community has lobbied hard over the years for improvements in Norfolk’s infrastructure and the success in getting the last section of the A11 dualled, shows the power of the ‘voice of business’ in Norfolk. We now need to rally together to continue to call for improvements to the A47, rail links and broadband.”

Caroline Williams, Chief Executive said: “We are keen to ensure that the Chamber Business Plan for Norfolk is a comprehensive document that truly reflects the needs of the business community to ensure that we create jobs and economic growth for Norfolk.”

To coincide with its International Trade Conference (9 October), the British Chambers of Commerce is leading a trade mission to India (7-12 October) with a group of businesses seeking to grow their exports to the subcontinent. The delegation will visit Mumbai, where thanks to the support of the UK India Business Council, they will have the opportunity to connect with prospective partners and distributors, and meet UK businesses already operating in India.

The delegation will then travel to New Delhi to join up with other delegations of British businesses, including one led by Business Secretary, Vince Cable, at the Britain in India Business Convention. Delegates will have the chance to hear about growth sectors in India and to network with Indian and British businesses, with one of the events hosted by the British High Commissioner. Delegates are members of Chambers of Commerce from across the UK, with an additional place sponsored by the Virgin Startup programme.

The BCC trade mission delegates include:

• Angelberry (member of Business West) – operate quick service restaurants specialising in frozen yogurt
• Innovashion (participant in the Virgin Startup programme) – developed the T-Stick, a new way of drinking tea
• Kromek (member of North East Chamber of Commerce) – provide security technology to the nuclear and medical markets
• SASIE (member of Derbyshire, Nottinghamshire & Leicestershire Chamber of Commerce) – a developer and installer of sustainable energy systems
• Soilutions (member of Edinburgh Chamber of Commerce) – provide soil and water cleaning solution
• Tendeka (member of Aberdeen and Grampian Chamber) – provide services to the oil and gas industry

David Riches, Executive Director of Commercial Services at the British Chambers of Commerce, said:

“There couldn’t be a more important time for the UK economy to support trade to overseas markets which offer sustained growth. The Accredited Chamber Network runs a trade mission programme throughout the year, linking with overseas British Chambers and business groups, to help UK businesses access opportunities in key markets around the world. This trade mission will provide our delegates with insight and contacts on the ground in India – an essential first step in the journey towards export growth.”

Commenting on the revised estimate of UK GDP, published today by the ONS, Caroline Williams CEO Norfolk Chamber said:

“Overall the GDP figures are positive – they show an upward revision in quarterly growth in Q2 and growth in business investment. The current level of GDP is considerably higher than its pre-recession level, which mirrors the Chamber’s view that earlier official estimates have understated growth in recent years. However, there are concerning features in the latest figures – the volume of exports has fallen slightly and the current account deficit has widened to above 5% of GDP, a level which in the long- term will prove to be unsustainable.

“While the strength of the recovery will support business confidence, these figures reinforce the need to rebalance the economy towards exports and investment. It is important that the MPC and the government make every effort to sustain the recovery. Interest rates must be kept low until there is a clear need to start increasing them, and government must do more to support exporters and improve access to finance for growing businesses.”

• GDP quarterly growth in Q2 2014 was revised up from 0.8% to 0.9%, but year on year growth in Q2 remains unrevised at 3.2%
• The level of GDP in Q2 2014 is now estimated to be 2.7% above its pre-recession level in 2008, this is considerably higher than previously estimated because of upward revisions to published figures for earlier years
• Business investment rose by 3.3% in Q2 2014
• Exports fell by 0.4% in Q2 2014, while imports fell by 0.3%
• The current account deficit widened from 4.7% of GDP in Q1 2014 to 5.2% in Q2 2014

https://www.ons.gov.uk/ons/rel/naa2/quarterly-national-accounts/q2-2014/i…

Commenting on the speech by Chancellor of the Exchequer Rt Hon George Osborne MP, Caroline Williams CEO Norfolk Chamber of Commerce said:

“The Chancellor made a blistering affirmation about the importance of the UK’s economic progress – brushing aside nimbyism and those who don’t believe growth is essential for Britain’s future. He correctly identified that economic growth is a pre-condition for delivering the public services that we all want, such as pensions, NHS and education. The Chancellor has also committed not to duck big decisions on national infrastructure projects including aviation, rail and roads. Businesses are used to hearing these pledges, but will always judge politicians on whether they actually deliver.

“However there were two pieces missing. We would have liked the Chancellor’s speech to address access to finance, as this is so important to raising business investment and long-term sustainable growth. Also a commitment to export support should be a government priority, as it is vital to re-balancing the economy.”

On the economy and deficit reduction:

“The Chancellor’s ambition for UK growth is in stark contrast to others in the political discourse, some of whom seem to have accepted a ‘new normal’ of low growth.

“Businesses will support the Chancellor’s continued commitment to mend Britain’s public finances. Above all, companies value certainty, consistency and predictability when it comes to economic policy – so it is pleasing to see the measures announced by the Chancellor are in keeping with the goal of getting the deficit down.”

On pensions:

“Putting money into a pension pot is not only important for the financial health of individuals, it’s important for the health of the economy too. Savings underpin investment and we need to do more as a country to boost business investment. This must go hand in hand with measures to boost savings. So we welcome the Chancellor’s announcement to abolish the so called ‘death tax’ to give people an additional incentive to save for their retirement.”

On welfare cuts to fund apprenticeships:

“The Chancellor made the correct link between skills and immigration, as the people of Britain should be able to compete for jobs in an open market. With our open borders, the only way to do this is by ensuring the UK has a highly skilled workforce that businesses want to employ.

“The commitment to raise the level of public investment in apprenticeships will be supported by business. Increasing the number of apprenticeships from two million to three million over the next five years is a challenging but worthy aspiration. As an economy that relies on knowledge and skills, training our young people is as important as the infrastructure of our nation such as our roads, railways and airports.

“We agree with the supporting package of welfare measures that do more to make work pay for young people, and ensure that the funding is available for the additional apprenticeships.”