POLICYNEWS
BUSINESS CONFIDENCE GROWS AND RESILIENCE STAYS STRONG DURING FIRST HALF OF 2021 Over the past year, many firms have experienced challenges related to Covid-19. With numerous lockdowns and cases of Covid-19, many firms have faced uncertain times during the past year. However, with the vaccination programme and the government roadmap, firms are starting to see light at the end of the tunnel. In the lastest Quarterly Economic Survey, conducted by the Herefordshire & Worcestershire Chamber of Commerce, 30% of businesses advised they were looking to increase their workforce over the next 3 months. With businesses experiencing a drop in sales and trade for the past year, businesses remain optimistic they will be able to remain open and bounce back to pre-pandemic levels within the coming months.
BUSINESS CONFIDENCE RETURNS IN QUARTER 1 The Quarterly Economic Survey for the first 3 months of 2021 reported business confidence in yearly turnover has more than doubled since last quarter (Q4 2020) from 19% to 44%. This increase in confidence is due to a range of factors such as the government roadmap, which has allowed non-essential shops to reopen and, from May 17, the return of indoor hospitality in efforts to boost the local, regional, and national economy. Business confidence will continue to grow as we progress, however according to the monthly Chamber Coronavirus Impact Survey, 16% of businesses are worried about further national lockdowns if Covid-19 cases continue to rise. With this in mind, the government remain optimistic the vaccination programme will be effective in helping to keep Covid-19 cases low and retain business confidence.
BUSINESSES ARE LOOKING FOR POST-PANDEMIC OPPORTUNITIES Throughout the pandemic, many businesses have been keen to identify new ways to expand their products and services. According to the Chamber Coronavirus Impact Survey, 43% of Worcestershire businesses were looking to expand their products into new markets. The pandemic has no doubt changed
many firms strategies as they continue to adapt to changing circumstances. However, what does remain clear is that businesses continue to look for growth and expansion opportunities into new sectors. Furthermore, 21% of Worcestershire businesses are looking for access to finance, to help support their growth. Whilst firms are reporting positive growth plans, many firms are seeking private investment from banks and financial institutions to put these plans into place.
BUSINESSES INVESTING IN DIGITAL INFRASTRUCTURE AND DIGITAL SKILLS REQUIREMENTS TO IMPROVE RESILIENCE Working from home has increased significantly since the start of the pandemic, with firms now investing in new technology to help keep up with demand for products and services. In the Chambers Employment Report 2020, it was found that 78% of businesses adopted or increased their use of at least one type of technology due to the pandemic. Many businesses across all sectors and industries continue to plan to work from home after the pandemic in order to reduce costs.
Business Direction published by Herefordshire & Worcestershire Chamber of Commerce
Firms throughout the pandemic have analysed their workforce to help identify whether an ageing population exists within their workforce. As described in the Worcestershire LEP Local Skills Report, Worcestershire’s population is older than the national average, and is ageing more rapidly compared to rest of UK population. 1 in 3 of the current workforce is over 50. Firms across Herefordshire and Worcestershire have signed up to the Kickstart Scheme and/or apprenticeship programmes to help combat an ageing workforce by recruiting locally and focusing on employing young people to create a skilled ready workforce. As we continue on the road to a full recovery, firms are beginning to feel confident for the months ahead, with reported increase in trade and sales. The vaccination programme continues to have a positive effect on driving down Covid-19 infections, however with new variants being discovered the government continue to monitor the infection rates. Firms remain quietly optimistic and hope trade will be able to return to pre-pandemic levels as the economy continues to reopen.
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