Chamber News

A survey of over 8,000 businesses released by the British Chambers of Commerce, shows that exporting activity continues to increase. However, the findings also suggest that providing firms with more training in foreign languages, and increasing their exposure to international companies would encourage more business owners to export. Economic growth relies upon British businesses being able to export more, so the British Chambers of Commerce is calling for more support for firms to help them trade internationally.

Language skills are vital to exporting

Knowledge of other languages is an important skill for exporters. 61% of non-exporters that are likely to consider trading internationally consider a lack of language skills as a barrier to doing so.

However, of those business owners that claim some language knowledge, very few can speak well enough to conduct deals in international markets. French is the most commonly spoken language, with 73% of business owners claiming some knowledge. However, only four percent are able to converse fluently enough in French to conduct business deals. This number drops significantly for those languages spoken in the fastest growing markets. In 2012, the IMF projects that the Chinese economy will grow by 9.5%, but just four percent of business owners claim any knowledge of the language, with less than one percent confident they could converse fluently.

Re-establishing foreign languages as core subjects within the UK national curriculum and in workplace training would mean that the next generation of business owners are ‘born global’ with language skills. The BCC is calling for the National Curriculum to be revised so that studying a foreign language is compulsory until AS level. Businesses could also be helped in training staff in new languages, if the government offered additional financial incentives such as tax credits for small and medium-sized businesses that make a significant investment in language training.

Businesses with stronger international connections are more likely to export

Businesses that do export are more likely to have stronger social connections with overseas markets. When asked what led them to export, the top three reasons cited by current exporters were: collaboration with overseas partners (71%); a chance enquiry from outside the UK (57%); and previous work experience abroad (52%). Those business owners that have lived abroad are more likely to export. 11% of current exporters have lived aboard for five years or more.

The BCC believes that creating opportunities for employees to work in overseas companies could help expose firms to more international opportunities. For example, an international business exchange programme, perhaps modeled on the well-known academic Erasmus scheme would allow employees to complete placements in companies abroad, and bring back their experience to their employer. A scheme that covered BRIC economies, as well as Europe, would mean that businesses could take advantage of fast growing markets as well as the eurozone.

Commenting on the findings of the report, John Longworth, Director General of the British Chambers of Commerce (BCC), said:

“Exporting is good for Britain, so it is right that we should encourage current and future business owners to develop the necessary skills to trade overseas. We’re encouraged to see the percentage of firms exporting in our survey has increased from 22% in January 2011 to 32% in January 2012. Exports are equivalent to nearly 30% of UK GDP[1], but more can be done to help businesses take the first step to exporting. Encouraging companies to boost foreign language skills with incentives like tax credits is just one way of making sure we continue to export best of British products and services around the world. A renewed focus on language skills at school, as well as helping companies forge new connections overseas, could help ensure that current and future business owners are pre-disposed to thinking internationally.

“We are already the sixth largest trading nation on earth, and the third largest service exporter, but to really secure our future as a leading exporter we need to help companies take advantage of new markets. Giving businesses the opportunity to forge links with international firms, develop employees’ language skills, and providing compulsory education in languages for young people will transform many of the great businesses we have in the UK into success stories overseas.”

The Foreign Office Department of UK Trade and Investment and the University of East Anglia Business School have formed a strategic alliance to explain and support the development of UK businesses both large and small with particular emphasis on international trade.

A series of live interactive video links between the UK and International markets will be streamed to your business location during 2012 examining markets in the USA (Los Angeles), Australia (Sydney), The Nordic countries (Copenhagen) and a range of others. Of particular interest is the different business opportunities being streamed live during the 2012 Olympics.

Please see below information covering the first programme. If the topics covered are not suitable for your business at present, The University of East Anglia Business School can tailor their programmes to your requirements.

Growing high-tech & innovative businesses… this project helps you develop & manage relationships with potential business partners, customers & suppliers in in northern France.

The main aims of the project are to :

• To support the growth of bilateral France-England trade amongst high-tech and innovative R&D companies

• To develop & utilise an online portal of potential English-French business partners

• To help strengthen business partnerships between French & English science parks, business centres and technopoles

The project helps to achieve this through supporting your business undertake the practical steps to build relationships with French partners.

Please see below for further information and how to register your interest.

The A47 need upgrading. Poor infrastructure is slowing down economic growth and the creation of jobs in Norfolk. At a time when our businesses are having to be even more innovative in the way of using technology in their businesses, getting around the county or out of the Norfolk, mainly still necessitates using roads.

The consultant’s report commissioned by Norfolk County Council has now quantified that investment in the A47 could bring 5,000 jobs to Norwich, 3,800 to Yarmouth and more than 700 to Kings Lynn along with £390m a year into the East Anglia economy.

Next Tuesday Brussel’s regulators meet to review the TEN-T regulations which set the status of major roads across the continent. Currently the A47 is classed as part of a “comprehensive network” rather than “core” which has resulted in little invetment to the route over the years.

The economic opportunities for growth and jobs which would be enhanced by improvement to the A47 include the Yarmouth’s Enterprise Zone focused on the growing North Sea energy industry, Yarmouth Outer Harbour, Norwich Research Park, expanding employment around the A47 and A10 south of Kings Lynn and our visitor economy.

The report does talk about a 20 year time scale and we are realistic to be aware that the chances of the Treasury finding the money is remote but it is important that this road is recognised as a catalyst of growth and job creation in Norfolk.

Norfolk Chamber of behalf of its members is writing to Brussels to lobby Norfolk’s case and through the British Chamber of Commerce will ensure Ministers understand the importance to Norfolk businesses of improving the A47.

The Belarusian Chamber of Commerce are organising a Trade Visit to the UK and would like to visit Norfolk. The group will be coming over 10-15th June 2012. Attached is a list of the delegates along with their interests. If anyone interested in meeting the delegation, please could you e-mail export@norfolkchamber.co.uk by 10th May 2012.

Wouldn’t be great if Norfolk could be one of the areas which were given the trial for the new motorway speed limit to 80 mph announced by Roads minister Mike Penning this week.

We are making progress on getting the A11 dual carriageway, the advance work on farm access roads is underway, archaeological works need to be undertaken but the main works will start early 2013 with an expected duration of 20 months so completion by the end of 2014. We may have to wait a little longer to get a motorway

The government is to take forward its proposal for increasing the motorway speed limit to 80mph by trialling the new limit on selected managed motorways.

Roads minister Mike Penning said this week that his department “is carrying out work to assess the potential economic, safety and environmental impacts of trialling 80mph speed limits on motorways where variable limits are currently in place”.

He said it hadn’t yet been decided which stretches of managed motorway would be included in any proposed trial.

“We plan to bring forward detailed proposals and start consultation during the next few months,” he said.

Ministers are also believed to be pressing the police to use a lower enforcement threshold than the current guideline of 10% +2mph that equates to 90mph, which is the reason why motorists aren’t presently stopped for driving a little over 70mph

It was last September, when Philip Hammond was transport secretary, that the government announced it would be consulting on an increase in the speed limit, but it has yet to happen. Mr Penning has said that any proposals would come with an impact assessment that would include research about road safety as well as emission.

Norfolk Chamber will keep you posted on this and all other infrastructure stories which affect Norfolk businesses.

Once again yesterday Norfolk rail commuters suffered a rotten journey to London from Norfolk with 16 Norwich to Liverpool Street services cancelled. Business passengers heading to London were hit by major disruptions. This was due to a line problem close to Liverpool Street which led to a reduced service to and from London with trains delayed or cancelled. The problem was caused by a broken rail and although Network rail started to work to fix the points at 10.30am, services did not return to normal until about 4pm.

Norfolk businesses need better infrastructure if they are to compete and run their businesses effectively. Norfolk Chamber members are playing a significant part in the Norfolk campaign to improve the rail services from Norwich and Kings Lynn as the effective movement of people and goods is key to business growth. So what is currently happening to make a difference?

As you aware, Abellio have taken over the Greater Anglia franchise which will run until summer 2014 when a new franchise will be let. In addition to lobbying government, as to what business wants to see included in the new franchise, Norfolk Chamber is also talking to the rail operators and Ruud Haket MD Greater Anglia will at presenting his thoughts about the future of our railway at the Norfolk Chamber’s Norwich Networking breakfast on 22nd June and listening to what business wants. We would encourage as many businesses as possible to come to this event as the business voice needs to be seen and heard!

Norfolk Chamber is also working with Norfolk County Council on two studies they are undertaking, with other local authorities and partners, looking at the improvements needed to rail services.

One study covers the west of the County including the Norwich to Cambridge line and the King’s Lynn to London line. Consultants have considering passenger demand in the context of housing, jobs growth and improved services. The next stage of the study will be a wider economic benefits study.

The key infrastructure blockage is Ely north junction with a series of single tracks that limit its capacity. An improvement scheme is estimated to be about £25m and Network Rail is carrying out some work to define exactly the extent of the improvement scheme and how and when it might be funded.

The second study is looking into how the agreed journey time reductions and capacity enhancement can be delivered on the Norwich to London line. The Chamber is part of the ‘Norwich in 90’ campaign with partners both public and private and of course our local MPs led by Norwich North MP Chloe Smith.

The news that the UK economy contracted in the first quarter – thereby heralding a technical recession – was unexpected. Here at the Chamber, we were awaiting an unimpressive but positive figure, given the results of our latest Quarterly Economic Survey and also what we hear day in, day out, from Norfolk business in the real economy. The feeling of ‘guarded optimism’ that comes through in conversation with Chamber members, and in most of the business surveys, suggest that the state of the economy may not be quite what the media or the number-crunchers at the Office for National Statistics believe.

That said, however, one thing is clear: whether we’re in technical recession or a period of incredibly weak, zigzag growth, Norfolk’s economy remains fragile, and stagnation is the real threat. This inherent fragility affects both sentiment and investment intentions, meaning that the Chamber’s call for special capital allowances, a stop to business rate rises, and improved access to finance at the time of the Budget looks all the more prescient. We said at the time, that action to support growth was as important as action to cut the deficit – and that remains the case today.

Aside from the GDP figures and the insufferable national media navel-gazing around the Leveson Inquiry, there is some positive news to report. Prompted in part by the work of the Chamber, government ministers renewed their pledge to improve public procurement – and to achieving an ambition of 25% of central government contracts going to small- and medium-sized firms. They’re already more than halfway there, having gone from 6.5% to 13.7% in a short space of time. However this doesn’t yet cover local government, the local NHS or some other bodies, so we are encouraging our local government bodies to follow suit as most of Norfolk’s small businesses cannot take advantage of this change in national government policy.

We will continue to run our Meet the Buyer events giving access to the local public bodies and larger private sector businesses with the next one planned for 20 September in Kings Lynn. The development of Sizewell C may seem a long way off but, as 80% of EDF Energy contracts will be non nuclear, businesses need to register on their supply chain portal www.sizewellcsupplychain.co.uk

Norfolk manufacturers especially those exporting report they are busy especially in the energy sector. Our food manufacturers have been watching the weather like hawks as they monitor the steadily rising grain price, but the recent weather change to rain in Western Europe has made them more optimistic about the future. Our boat builders at the luxury end are seeing a strong order book and the ‘staycation’ trend is encouraging the fleets to order new boats. I guess my message is that although it is not easy out there, Norfolk businesses are up to the challenge. I know that we do need rain but for our sanity and for the benefit of our important Tourism sector I hope we do get a dry sunny bank holiday weekend to recharge our batteries and get our Norfolk economy growing.

An emergency response centre is set to be built at Suffolk’s Sizewell B power plant, to be used in the event of a disaster.

As part of EDF Energy’s Japanese Earthquake Response (JER) Programme work, to further enhance safety margins, the purchasing of back-up equipment has begun to provide additional support to a station response, enhancing a station’s capability to recover during and after an extreme natural event.

At Sizewell B, EDF Energy is proposing to build an Emergency Response Centre (ERC) on the Railhead site to the east of Leiston to incorporate this back-up plant and equipment storage and to provide office space associated with EDF Energy’s enhanced emergency arrangements for Sizewell B.

The provisional timescale for the project is as follows:

• Spring 2012: Design development
• May 2012: Informal public consultation
• Mid June2012: Planning application submitted
• June/July 2012: Statutory public consultation
• October 2012: Planning application decision
• January 2013: Planned construction starts
• Spring 2014: Fully operational

Martin Cubitt, Technical and Safety Manager at Sizewell B said: “Safety is, and always has been our overriding priority. However as a responsible operator, we recognise that we cannot be complacent. Although our record and the recent reviews all show how safe Sizewell B power station is, we feel it is prudent to invest in providing an additional layer of resilience to our emergency response capabilities.”

A public consultation was opened at Leiston last night, where visitors can see the plans and offer feedback on the proposed site. Find out more and have your say about theproposed emergency response centreat Sizewell B.

On 5 April Skills Minister John Hayes launched the National Careers Service, making accurate information and professional advice on learning and work available to everyone. The service has been developed with input from a large stakeholder community.

In a Parliamentary statement on 23 March, Mr Hayes described advice and guidance as a “vital part of building a sustainable economy and helping people become socially mobile”.

The service offers:

• online, webchat and helpline services to young people and adults (schools are responsible for securing careers guidance for pupils aged 14-16)
• face-to-face guidance to adults aged 19 and over (and jobseekers aged 18 and over), available in a wide and growing range of locations in the community, including colleges, Jobcentres and community centres.

Each year the service will be able to help 700,000 adults face-to-face and handle up to one million telephone and 20 million online sessions from young people and adults.

On 5 April BIS published The Right Advice at the Right Time – describing the Government’s plans for the new service – on the BIS web site.

The Right Advice at the Right Time report is available online.

Chamber Cocktails went down well

Last night saw the first Chamber Chill Time! event kick off in style. The event was really well attended and everyone got into the mood with a drink and light bites on arrival. The Vodka Revolution bar in the heart of Norwich was the perfect setting for a relaxing evening of networking.

We heard from Kieran Miles of Ultimate impact media who gave an inspirational speech. Everyone was enthused by his story and he left everyone determined to follow their dreams.

Once people’s spirits were lifted, the spirits then started to flow as the cocktail master classes got underway. Everyone got into the stirring, shaking and in one case throwing the cocktails as well as being able to mix with each other, enjoy networking over a glass of something cool and do business.

For details on future events contact the Events Team on 01603 625977 or at events@norfolkchamber.co.uk

George Padelopoulos, Sustainability Manager, Ethical Trade, B&Q, will be speaking at Norfolk Chamber’s Sustainability 2012 Conference on 10 May at the John Innes Centre.

B&Q has recently won the UK’s most prestigious business award, The Queen’s Award, for its work in creating a sustainable business and helping people improve the sustainability of their homes,

At the Sustainability 2012 Conference Mr Padelopoulos will be delivering a presentation entitled: ‘Preparing for the Green Deal – a B&Q perspective’. He commented: “With more than 18 million homes likely to be eligible under the Government’s Green Deal programme, this presentation will take delegates through some of B&Q’s experiences in preparing for and providing an outline of what the Green Deal could mean for businesses.”

The UK’S largest home improvement retailer, which has already been named Retail Week’s Responsible Retailer of the Year this year, B&Q will be presented with their Sustainable Development Award later this year. It demonstrates that corporate social responsibility is intrinsically linked to business success, not at odds with it.

Whilst the retailer proved it has made significant progress by; reducing its own emissions; investing in green technologies; educating its employees; and helping people make their homes more sustainable – the award was, in no small part, made as a result of B&Q’s 20 year journey to become the first major UK retailer to only buy timber products from proven responsibly-managed sources.

As well as now stocking more than 15,000 Forest Friendly products, B&Q also provides a range of over 3,500 independently accredited One Planet Home eco products, designed to reduce levels of environmental impact or help people get greener homes. Currently 12 per cent of product sales are from the eco-brand. Already looking ahead to the launch of the Green Deal later this year, B&Q is researching and developing new products and advice to ensure it can offer people the help and advice they need to take advantage of the Government’s Green Deal offer to ecovate their homes.

Matt Sexton, Director of Corporate Social Responsibility at B&Q said: “This award is a huge honour and confirms B&Q as one of the UK leaders in more sustainable retailing.

“Our sustainability journey started over twenty years ago when we were challenged about where the timber in our garden furniture came from. Today we monitor over 15,000 timber and paper lines specifying that they come only from proven responsible sources. This has meant making some hard commercial choices along the way but we believe it is the only way to operate.

“We have made good progress against other One Planet Home goals with substantial cuts to greenhouse gas emissions, solvent levels in paint and the amount of waste we send to landfill. This is thanks to teams throughout our business, who constantly work to support our One Planet Home goals. We always strive to do the right thing and if we don’t always get it right we work hard to put it right.

“We are delighted to have been recognised with this prestigious award which will spur us on in pursuit of our goal of becoming a truly sustainable business.”

Some of B&Q’s sustainability headline achievements:

• VOC levels per litre of paint cut by 60% in the last ten years
• 26% cut in carbon emissions from transport versus 2006/7
• 24% cut in carbon emissions from store electricity versus 2006/7
• 87% of waste diverted from landfill in 2011/12
• Overall reduction in absolute carbon emissions of more than 20% since 2006/7
• Peat content in plants and growing media cut from 71% to 44% in ten years
• Launched its Forest Friendly campaign to raise awareness of the importance of only buying products made from or containing wood that has come from sustainable, well-managed forests because individual buying choices can help prevent deforestationCampaigned in Europe to ban the import and possession of illegal timber
• Launched an One Planet e-learning module for staff – completed by 12,000 staff
• Purchased and ecovated a two-up-two-down end of terraced house, which now meets 2050 energy standards which has cut emissions by 69 per cent
• Is a founding partner of the Ellen MacArthur Foundation dedicated to propagating developments in closed loop business models
• Has appointed a Youth Board (mentored by B&Q’s board directors) to help shape the business’ sustainability strategy. The young people present their recommendations to B&Q Board and Dame Ellen MacArthur at the end of July.
• Retail Week’s sustainable business of the year 2012; was listed in the top 20 of Sunday Times Best Green Companies 2011; was given The Observer’s Ethical Business Award 2010
• Leading the way in sustainable innovations. Introduction of Clean Spirit, Powder Paint, recycled newlife paint, recycled plastic loft insulation, carpet underlay made from old clothing.
• Continuing to champion leading employment policies. A quarter of the workforce is over 55 with a similar percentage under 25 and only UK business to be recognised as a world class employer for five years running by Gallop
• Helping your people develop practical skills through our Job Done schools programme, our partnership with UK Youth and the DIY Scout badge
• For more details of the work B&Q has been doing read our action plan