Chamber News

• A third of SME goods exporters are not confident about final costs of shipping 

• Only a quarter of SME exporters say a weaker pound increases export sales margins  

• Half of SME exporters say it has become more difficult trading through UK and international ports 

A British Chambers of Commerce survey, of 486 businesses, for its ChamberCustoms brokerage service has found a third of businesses have little or no confidence on the costs they will pay to export goods. More than a third (34%) of SME goods exporters are either ‘never confident’ or ‘rarely confident’ about the final cost of shipping goods until they got the bill.  Only 12% are ‘always confident’, and 55% are ‘usually confident’. Half of SME exporters (47%) say it has become difficult to trade through UK or international ports since the start of 2022, while only 3% say it has become easier. 38% report no change. Businesses cited constant changes in shipping and transportation prices, unexpected customs charges, exchange rate volatility, delays at borders and fluctuating fuel costs for the uncertainty. The same research also discovered that SME exporters generally do not regard a weaker pound as beneficial to their business. Half (50%) say a weaker pound generally corresponds to an increase in input costs, while 8% say it corresponds with a decrease. Only a quarter (26%) say it corresponds with an increase in export sales margins, while 29% in fact say a weaker pound corresponds to a decrease. Liam Smyth, Managing Director of ChamberCustoms, said:  “In the face of a recession and a cost-of-living crisis it has never been more important to get Britain exporting. “But we face an uphill challenge in persuading more firms to trade overseas when so many of them feel there is a lack of transparency around costs. “It is very hard for businesses to build an operating model for their exports when they can’t establish what their sales margins will be. Some of the blame for this can be laid at the door of global supply chain disruption which has caused big fluctuations in shipping and transport costs. “But there are also serious issues with the additional time being taken to process paperwork, and then delays at the borders when it is not done right, with four in 10 firms telling us trading through ports has got more difficult. “That’s why the shift to a digital system of trade is so important, moving on-line can ensure that checks can be carried out beforehand to smooth the export process, removing a big chunk of the uncertainty. “This is especially important for smaller firms, given the challenges of the current economic climate. With a weaker pound not appearing to offer exporters much of a competitive edge, they will be looking for any means possible to reduce their costs and increase their margins. “The UK Government also needs to focus on pushing awareness of free trade deals, especially among smaller businesses, and take decisive action on reducing some of the removable EU red tape costs for traders.”

“The challenges facing businesses in the UK labour market remain very much the same.  We have a critical shortage of skills and labour that is damaging firms and holding back growth. “Once again, the data shows the number of job vacancies remains at record highs, adding to inflationary pressures. “With confidence waning as we enter recession, and the expectation of even tougher economic times ahead, we may see more recruitment freezes, job losses and business closures. “But the underlying problem is unaltered – unless we address the ongoing mismatch of skills available and business needs, this drag anchor on the economy will persist and hinder recovery. “Concerns are growing about the numbers of people who are leaving the labour market through long-term illness – as well as those choosing early retirement. This will damage opportunities for individuals and the economy. “The government and employers must work together to solve the labour market conundrum.   We must look at ways to help people experiencing ill-health stay in work and to encourage skilled and experienced retirees to return to the workplace. “We need to remove barriers to work, by offering flexible workplaces, rapid re-training opportunities and better access to childcare and public transport. “And, crucially, we need to invest more in the training and upskilling of everyone in the workplace so that we are ready to grasp new opportunities for growth. The Chancellor has an opportunity on Thursday to start fixing the labour supply problem in our economy. If he misses it, growth will remain hard to come by.”

On Tuesday the 8^th of November Alex Sellers, Director of Operations at Turning Factor delivered a training session for young professionals. The event was based on the Myer-Briggs Type Indicator (MBTI) where the attendees learned their own personality types. The event, catered for by The Feed, saw attendees discuss their own personalities, including what they like and dislike from others and how they can use their personality to communicate better and understand other personalities. When asked about the event one attendee said “The event was extremely eye-opening, it explains why I get on more with certain people than others. I now analyse people using the Myer-Briggs Type Indicator when I meet them, it will definitely help with how I approach and talk to new people.” Another attendee said, “It was a small-ish group, so perfect for discussion without being too overwhelming – the topic was really interesting and very well delivered by Alex, who clearly knew his subject.” Find out more about our Co.next programme and events here.  

VolkerFitzpatrick has been appointed by Ørsted, the world’s most sustainable energy company, to deliver the installation of onshore cables for the Hornsea 3 offshore wind farm. The project (subject to Ørsted taking a Final Investment Decision on Hornsea 3) will see the installation of 240 km of onshore cables that will connect the offshore wind farm from the landfall at Weybourne in Norfolk to the Norwich Main National Grid Substation. Works are scheduled to commence in March 2023 with anticipated completion in 2027. Businesses from different sectors joined us on Friday 4th November to meet and discuss the opportunities to work on the Hornsea 3 project with VolkerFitzpatrick. Meet the Buyer was an opportunity for local businesses to sit down and have a 15-minute meeting with a representative from VolkerFitzpatrick to learn more about the project and showcase how their business can help. The outcome of the event was very positive with many businesses in Norfolk fitting the criteria required to work on the project. When asked how the event went, Adam Morris, Senior procurement manager at VolkerFitzPatrick said “Having a one-to-one chat with companies was a real benefit to us, we already have several follow-up meetings booked in and we hope to hold another meet the buyer event in 12 months’ time”. When speaking to Amy Wright, Events manager at the Norfolk Chambers she said “The event was a huge success, and it was great building relations with the Norfolk Business Community on this upcoming project. A big thank you to Norwich City Football Club for their hospitality on the day and we look forward to working with VolkerFitzpatrick in the future.” Thank you to GAP Group, UEA/Career Central, Apprenticeships Norfolk, Constructionline, Ainscough, Contractors and Plant Hire, Geosynthetics and VolkerFitzpatrick for having a stand at Meet the Buyer. If you attended the event, please scan the QR code below and leave your feedback

The Chambers Quarterly Economic Survey (QES), is the UK’s largest independent business survey and it is currently open for responses from local Norfolk businesses. The previous quarter’s QES showed that 39% of businesses believe that their profitability will reduce over the next 12 months. Q3 results showed that fewer businesses are reporting increased sales; only 33% of firms reported increased domestic sales, down from 41% in the previous quarter. Measures for inflation remained at a record high as more than four in five (84%) firms say it is a growing concern for them. Three months on, it is now time to ask again what Norfolk businesses think.  We need to hear from a wide range of Norfolk businesses – large and small to understand the true picture of the local economy. The QES only takes a couple of minutes to complete – it is anonymous and your support would be greatly appreciated. The QES Q4 is open for responses until midnight on Thursday 1st December.  Take part in the QES now. Photo credit: Getty Images/Chamber Canva Pro

The Norfolk Showground Arena has added 624 solar panels to its roof, providing enough power for the entire site. See the full story in the Eastern Daily Press article at the link below: https://www.edp24.co.uk/news/23122745.norfolk-showground-invests-200-000-arenas-solar-panels/ Image credits – Chamber Canva Pro 2022

• 47% of UK small and medium-sized enterprises (SMEs) say it will be difficult to pay their energy bills when Government support ends
• 4% say they will not be able to pay their energy bills after 31 March 2023
• Energy cost is the number one priority for businesses
• Over four in ten (41%) SMEs disagreed that tariffs available the last time they renewed contracts were affordable

A new British Chambers of Commerce (BCC) survey has found almost half of SMEs say they will find it difficult to pay their energy bills once the Government’s Energy Bill Relief Scheme ends on 31 March 2023. A further 4% say they will not be able to pay their energy bills at all, while 37% predict they will find it difficult to pay even when they are in receipt of Government support. Over four in ten (41%) SMEs disagreed that tariffs available the last time they renewed their contract were affordable. A further 29% said a range of tariff options was not available, while almost a quarter (24%) did not feel it was easy to change providers. A quarter of SMEs surveyed had renewed their electricity tariff since April 2022, while 22% had renewed their gas. SMEs that renewed their energy tariffs after April 2022 report more difficulties These firms were more likely to struggle to pay their energy bills going forward with 60% saying they will face difficulties paying after March 2023, and 7% saying they won’t be able to pay at all. Over half (51%) will find it difficult to pay their bills between now and the end of March, during the period of the Government’s Energy Bill Relief Scheme. SMEs who had renewed their tariffs since April 2022 also faced greater difficulties during the renewal process; 69% disagreed that the tariffs available to them were affordable, while almost half (47%) disagreed that there was a range of tariff options available. Commenting on the findings, Shevaun Haviland, Director General of the BCC, said: “Energy costs are the number one business concern, with 55% of firms saying it should be a top priority for the new Prime Minister. “It’s clearly worrying that almost half of SMEs say they will face difficulties paying their energy bills once the Government support runs out. But what is, perhaps, even more concerning is that 4% said that they will not be able to pay their bills at all after March 31. “With over 5.5 million SMEs across the UK, if this was replicated on a national level, over 220,000 small and medium-sized businesses would be in danger. “While current Government support is welcome, there is a cliff-edge looming, and firms will struggle to see beyond it. They need certainty on what will happen in April so they can plan with increased confidence. “Government should not forget those businesses that will not benefit from a new energy package but will continue to require support once the current scheme ends. There are other levers that Government can pull to relieve cost pressures, such as a reform of Business Rates to compensate firms that see energy support reduced or phased out. “There is also a lack of competitiveness in the business energy market. Firms are struggling to get quotes from different providers, and they are not guaranteed access to fixed-rate contracts. “Ofgem should be given more power to strengthen regulation of the energy market for businesses, ensuring suppliers offer fixed-rate contracts to business customers, and that competitiveness is increased.”

Reacting to the World Trade Organisation’s (WTO) World Trade Report 2022 released at COP27, Nova Fairbank, CEO at the Norfolk Chambers of Commerce, said: “World leaders will do well to pay attention to this report. The WTO’s call to action is clear – trade in environmental goods and services to mitigate climate change is also good for Norfolk jobs, productivity and investment. “It is so important that we seize this moment now; any failure to raise levels of green trade will otherwise damage supply chains, lead to production shortages, and weaken infrastructure in the future.   “We need to see a step change in the political response. The report finds green trade has multiplier effects in achieving the transition to low-carbon technologies across the world. Reducing tariff and non-tariff barriers now, could increase green exports by 5% by the end of the decade and cut global emissions too.  “Business is ready to meet this challenge – but we also need global leaders and trade ministers to step up and provide the trade opportunities that allow us to develop growth and lower carbon emissions hand-in-hand.” An executive summary of the WTO World Trade Report 2022 can be found here. Image: Chamber Canva Pro 2022

Reacting to the ONS Trade data for September 2022, Nova Fairbank, CEO at the Norfolk Chambers of Commerce, said: “The effects of higher inflation and reduced consumer spending globally on UK trade are growing clearer as both imports and exports of goods in September slowed. “On the plus side, UK services trade in September held up, although areas such as hospitality are being hit at home, the demand for financial and business services products abroad remains stronger. “To counter these strengthening headwinds for goods trade, we urge the UK Government to implement the recommendations of our Business Manifesto. “To have any hope of expanding goods export opportunities for firms, the UK’s Export Strategy must be reinforced. This and other measures, such as negotiating reduced red tape in the EU trade agreement, will help mitigate the impacts of rising inflation on consumers and businesses at home.” In Depth Analysis Imports In September, overall goods imports to the UK fell by 5% (£2.8bn) with EU imports down by 7.3% (£1.9bn) and non-EU imports down by 3% (£1bn), primarily down to lower gas imports from Norway and the fall in oil prices globally. Excluding inflation overall imports fell by 6.1% (£2.6bn) in September. Among the largest falls in imports from the EU by sector was in chemicals (down by £0.7bn). Fuel imports from outside the EU, principally Norway, fell the most in September – down by £1.3bn. Exports UK goods exports fell in September by 4.7% (£1.6bn). The drop in exports to the EU was higher than to the rest of the world – 5.1% (£0.9bn) compared with 4.2% (£0.7bn). Excluding inflation, overall goods exports fell by 4.8% (£1.4bn) in September. On exports to the EU the largest falls were in machinery and transport equipment (principally to Germany) and in fuel exports. Falls in non-EU exports were led by drops in the same goods and commodities – mechanical and transport equipment, as well as oil exports. Deficit The overall trade deficit fell by £1.3bn to £23.7bn during September – fairly constant over the past 9 months. In Q3, total UK goods imports rose by 2%, and UK goods exports rose by 3.2%. Imports of machinery and transport equipment from the EU fell by £1.7bn over the quarter and chemicals by £1.4bn over the same period. Total services imports and exports both rose by 3.3% in the same period. Trade in pensions, travel, intellectual property and insurance services remained strong in Q3. More detail on the ONS trade data can be found here.   Image: Chambers Canva Pro 2022

As we approach International Men’s Day on 19^th November we want to recognise and celebrate the fantastic men here in Norfolk. Here at the Chambers, we’re incredibly lucky to work alongside some amazing men (check them out here) as well as being inspired by our amazing business community which showcases some spectacular men. International Men’s Day is held annually and this year it’s focusing on wellbeing, positive conversations, and raising awareness of the charities that are available to support boys and men with their mental health and wellbeing. In 2021, The Office for National Statistics reported that there were over 5,000 suicide deaths in England with over 73% of those males.* The retailer, Next, released a campaign in 2020 on #SayMoreThanOK highlighting the importance of men being able to open up to share that they’re not okay and to have the support they need to take care of their mental health and wellbeing. View their video here. Here in Norfolk, we have some fantastic charities that provide support to everyone in need. Norwich City Football Club delayed the release of their kit this year in aid to raise awareness of mental health. Stephen Fry is not only a NCFC fan, but he is also president of Mind, and bringing the two together, he delivered an inspirational video showcasing just how important mental health is and how it impacts 84% of people in their lifetime. Jason Carlton, Director of Uptech says “A high percentage of men are very good at masking their true thoughts and feelings and not sharing with others their real problems. We have the tendency to allow our thoughts to build up challenges and problems that confront us which in turn can trigger our vulnerabilities that leads to an unclear state of mind into what we think is the way out. Our mental state and wellbeing are clearly not just down to gender or age its a massive problem across for board and is wrapped around different layers in what is perceived to fit in culturally and accepted in our environments and communities which can isolate us and single us out and have a huge impact on our mental wellbeing feeling alone. If there is a takeaway in awareness on mental health issues – I would encourage business owners – leaders to roll out mental health champion training within your organisation.” Alex Wiseman from Norfolk and Waveney Mind says “We are your local mental health charity. We work to ensure that no one has to face poor mental health alone. This International Men’s Day we want to remind you that whether it’s you needing support, someone in family, a friend or a work colleague, we are here for you. You can call our team who will discuss the most appropriate service for you on 0300 330 5488 or visit our website www.norfolkandwaveneymind.org.uk” In the lead-up to International Men’s Day, we’d like to celebrate all those men who inspire us and encourage conversations around mental health. We’d love to give a shout-out to men who are special to you or inspire you, so send us a photo and a short message here for us to share across our social media in the run-up to International Men’s Day. #InternationalMensDay As a member of the Norfolk Chambers, you have access to a wide range of support through Quest. Quest is there to provide free support and guidance on HR, Health and safety, Legal and Tax issues for you and your business. You have access to a large library of documents and direct hotlines to Quest specialists. Get in touch with your account manager to find out more. Find more amazing charities here. *https://www.ons.gov.uk/peoplepopulationandcommunity/birthsdeathsandmarriages/deaths/datasets/suicidesintheunitedkingdomreferencetables

We are delighted to announce that Norse Group Ltd has become Gold Patrons at the Norfolk Chambers. The Norse Group is the largest Local Authority Trading Company in the UK comprising of NPS Group (NPS), Norse Commercial Services (NCS) and NorseCare. They are one of the country’s fastest-growing service providers, with a broad range of services including facilities management, property services and specialist care facilities. Providing commercial solutions which address current and future built environment challenges, we have 22 joint venture partnerships across England and Wales. View their directory here

• 54% of businesses say smoother customs procedures are the key to boosting UK exports
• 42% favour lowering tariffs, while 35% said there is a need to reduce regulatory barriers, and 29% want better support for smaller businesses
• Overcoming the new requirements of the TCA has encouraged one-in-ten (9%) UK exporters to Europe to trade with new non-EU markets

While barriers to trade affect most firms, overcoming recent EU challenges has led some to expand into new markets, a survey from the British Chambers of Commerce (BCC) and DHL Express has highlighted. The survey of almost 1,000 UK businesses – 92% SMEs – shows almost half (48%) said the top barriers to exporting were costs and disruption, alongside tariffs (48%), and customs procedures (47%). A further 41% of businesses said regulatory issues such as product certification were a hindrance to trade, and 37% cited political, social, economic or environmental uncertainty. Only 9% of firms surveyed said their business does not face any barriers to exporting. The lack of engagement amongst businesses with Free Trade Agreements (FTAs) is another stumbling block preventing more international sales. Four out of five firms (79%) had not carried out any assessment into what they may need from a trade deal with major international markets. This falls slightly to 69% for UK exporters. However, businesses want their trading journey to be straightforward and allow them access to new markets with ease and speed. More than half (54%) of respondents said ‘smoother customs procedures’ would be a top priority for future trade deals between the UK and other countries, followed by ‘lowering tariffs’ (42%) and ‘reducing technical barriers’ (35%). When it comes to trading with the EU, almost two thirds (61%) of UK exporters to the EU say they can meet the requirements of the UK-EU Trade and Cooperation Agreement (TCA), while 20% say they can’t. But overcoming the challenges presented by the TCA has offered growth opportunities in new markets for some businesses. Of the exporters to the EU that agree they can satisfy the TCA requirements, 9% say they are now trading with new non-EU markets as a result of this, and a further 9% say they will now consider doing so in future. This highlights the opportunities that trade presents for businesses, especially those who show resilience in the face of challenges.   Commenting on the results, William Bain, Head of Trade Policy at the BCC, said: “Our findings highlight the real priorities traders have for UK trade negotiations with partners across the world, and other trade policy developments. Faster customs processes, tariff reductions, removing technical barriers to trade, focused support for SMEs’ easier labour mobility, and mutual recognition of professional qualifications are the top six issues for the UK’s SME exporters. “For traders exporting to the EU, speed, efficiency and reduced hassle are even more to the forefront of their minds. The BCC has a plan to cut red tape on UK-EU goods movements. We also have ambitions to boost UK exports across our key global markets through new Single Trade Window developments and trade negotiations. “While there are challenges currently facing exporting businesses, there are also of course many opportunities. It’s crucial that in the coming years, SME exporters working with trusted logistics partners feel the significant benefits of global trade as we hopefully see the removal of barriers and the opening up of new international markets.” Ian Wilson, CEO, DHL Express UK said: “Businesses have been through enormous challenges over the last two years, but they have shown incredible resilience. During times of economic uncertainty, having a presence in a number of markets is an effective way to minimise risk, so we need to ensure that UK businesses are encouraged to keep looking for international trade opportunities. “While international trade can be challenging, businesses don’t have to go it alone. We can see from the research that most businesses aren’t aware of what FTAs could mean for them. It’s in everyone’s interest for them to succeed overseas, so we want exporters to feel empowered to talk to Government, their trade bodies and businesses like ours about what support they need.” Link to Infosheet Oct 2022. You can view this original article here