7 minute read
n Economy - Global trade can be a key driver of economic recovery
Global trade can be a key driver
of economic recovery – BCC
The new director general of the British Chambers of Commerce (BCC), Shevaun Haviland, has set out the action needed to help firms and communities rebuild.
In her first speech to the BCC’s Global Annual Conference, she said that key steps were needed to boost UK trade, unlock the blockages in the skills training system and build a greener and more sustainable economy that achieves the aim of net zero by 2050.
Putting trade and export at the heart of her future vision for the country, she said:
“Imagine what a difference it would make to our economy if we could increase the number of businesses that export from 10% to 20%? We know from our survey data that internationally active firms are more likely to be innovating and introducing new products, services and processes than those not working globally.
“If we are going to truly succeed in our new trading conditions, the government and business must work together shoulder to shoulder. The government must bring together all organisations working in this area, both public and private sector, behind a shared UK trade and investment strategy.”
Following news of the delay on full reopening for England, Haviland also warned against government removing support for businesses too early and of the risks of an uneven recovery. “Despite the challenges firms have faced – the rising burden of debt and depleted cashflow – there are signs that firms are beginning to feel more positive about the future,” she said.
“While it may be slow, they can see a route back to full operation, where they can start to invest and power the economic recovery.
“That’s why I am setting out the BCC’s recommendations to rapidly rebuild the economy, to not just take this country back to where we started, but to go beyond that to a better, greener, more productive future.
“We know the financial support put in place during the darkest hours of the pandemic cannot, and should not, last forever. But we must ensure this scaffolding is not taken away too early.
“With many firms struggling with the damage done to their cashflow and revenue by COVID, the risk of a marked rise in insolvencies and redundancies as government support winds down remains high.
“The recovery will be dramatically uneven across different sectors, locations and demographics. So just as the government supported firms to survive through the crisis, they must also act now to enable them to thrive in the recovery.” Haviland also paid tribute to the role that accredited Chambers of Commerce have made to keeping businesses afloat throughout the pandemic.
She said: “As Chambers of Commerce, our business is all about helping other businesses to succeed. This crisis has allowed our Chambers to do what they do best.
“Firstly, our 53 Chambers across the UK have incredible local knowledge and networks and they have provided unparalleled support to businesses in their places, to help carry them through the crisis.
“Secondly, by working together through the British Chambers of Commerce, we have been able to help shape the policies that have kept us all in business.
“Lastly, our growing network of 73 International Chambers around the world puts us in a unique position of strength to grasp global opportunities as we open up again.”
Alongside Haviland’s speech, the BCC also published its Rebuild report, which sets out the detail of what the organisation believes is needed for UK businesses and communities to prosper in 2021 and beyond.
Cyber attack:
could it lose you a construction tender?
Cyber attacks are, or should be, a real concern to businesses operating in the digital world – which is most of us these days.
Viruses, hacking, phishing, ransomware attacks and other cyber scams can make for an uncomfortable interruption to business productivity. They can also cause financial loss and, of course, reputational damage.
For those in construction, tenders and partnerships will require strict adherence to, and proof of, the security of your systems.
Nikhil Kamboj, founder of new Chamber member Databox 360, helps businesses to navigate the cyber minefield, offering advice on where their cyber risks are, then looking at how to improve them, be it through training or deployment of security measures.
Nikhil explains: “The majority of the cyber attacks come via email – 95%, where the human has clicked, taken action or done something required in the email and unwittingly compromised security. However, training can be given to heighten their awareness and keep their data safe.”
Training and simulations of cyber attacks help Nik’s clients to know what they look like and test how they react to hacks and scams – because these days, they are very hard to spot.
Nikhil added: “It’s not to catch people out, it’s to test their resilience to cyber attacks because they are getting more and more sophisticated every day and they are designed to fool us, even if we are alert.”
Brachers advises
The Mum Club on franchising operation
South east-based law firm Brachers has advised The Mum Club on the successful franchising of its business.
The Mum Club is one of the UK’s premier online publication and events companies for women with children. Launched in 2016, the innovative start-up focuses on a “woman first” community, built around accessible local events and online membership options connecting women to expert advice, an online forum with other mums and exclusive offers. The franchising of the business has seen The Mum Club’s presence and network expand across the UK.
Brachers has worked alongside The Mum Club on various commercial matters to support its continued growth and success. This includes negotiating agreements with the company’s key service providers (including website developers and PR companies) and advising on the protection of its intellectual property rights, which has been integral in ensuring the business is future-proofed and attractive to investors as it continues to grow.
The Brachers team advising The Mum Club was led by commercial partner Alex Cosgrove and assisted by associate Sarah Hewitt and solicitor Connor Iontton.
Alex Cosgrove said: “The Mum Club is a unique business that found an innovative solution for a demand within mothers for more focused support. The launch of their franchise option is an important step in their growth strategy and we are pleased that we’ve been able to achieve the right result for them. We look forward to watching the business develop and working with them in the future.”
Lauren Webber, co-founder at The Mum Club, said: “Brachers have supported us on a number of matters and we were pleased to have them on our side as we launch this exciting new stage in our business. We really valued their commercial insight and expertise and felt like we were in safe hands throughout the process. Thank you to Alex and his team for their help.”
For more information visit
www.brachers.co.uk
Manufacturing businesses report
Businesses are reporting serious challenges to supply chains, with stock lead times hitting 56 weeks for even the most basic items.
Accountants, business and financial advisers Kreston Reeves in a survey of 100 businesses in London and the South East found that 41% are currently experiencing significant supply chain challenges with a further 17% expecting problems in the very near future. The issue is particularly acute for UK manufacturers.
One manufacturer has reported stock lead time of up to 56 weeks for even the most basic of items.
Andrew Tate, Partner and Head of Restructuring and Transformation at Kreston Reeves said: “Manufacturing businesses are facing a perfect storm of delays caused by COVID, Brexit and the temporary closure of the Suez Canal, with stock lead times typically between 24 and 56 weeks.
“The demand for high quality and high value UK manufactured products is there, but the ability to stockpile for even just a few weeks is not possible for most businesses. Businesses are unable to fulfil orders and are taking a hit on margins.”
The problems rest in transportation rather than overseas manufacturing, with businesses simply unable to ship to the UK. Problems are expected to continue into the summer of 2022. “The COVID pandemic has meant that businesses cannot send staff overseas to sort our problems on the ground, and when they can the transportation is simply not there,” says Andrew.
Increased costs to UK manufacturers caused by supply chain delays are currently being absorbed by CBILS and Recovery Loan funding that has yet to be spent, but funding challenges loom large.
Andrew says: “What will happen when that funding is exhausted? Will banks respond if more funding is needed? Businesses experiencing supply chain challenges should be speaking to their banks now.”
