7 minute read
Policy News
Around the Jubilee Weekend, Members of Herefordshire and Worcestershire Chamber of Commerce were asked to complete the latest Quarterly Economic Survey, outlining business performance and confidence in the period between mid-March and mid-May 2022.
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The Quarterly Economic Survey (QES) has been conducted by the British Chamber of Commerce within its UK network since 1989. Its findings have allowed businesses, their partners, and representative bodies to assess their current position, plan, and benchmark themselves amongst their peers. This last survey was completed by 5700 businesses across the UK, 376 (6.8%) of them from Herefordshire and Worcestershire. Whilst assessing the last two surveys it is clear the research was being completed during “unprecedented times.” Each moment there was a chance of sustained recovery, another factor would become relevant to slow any progress. It’s true that this is still very much the case. Whilst Covid factors may have settled in the UK, and the transport of goods across our oceans may have calmed, the effects of The Ukraine War, and the global supply issues the war has created along with tough health measures in China, have given businesses huge challenges in fulfilling production schedules and orders. Supply issues drive prices. None more so than in energy prices and the inflationary increase in many vital raw materials is a huge concern. The survey indicates the considerable financial stress that businesses across Herefordshire and Worcestershire are experiencing. The level of inflationary pressure has reached record levels and to some extent, based on recent times, we are in uncharted territory. It is evident that where previously businesses were showing cautious optimism, they are now reporting concern and a number of factors have presented themselves in this report and will be detailed later. Locally in Herefordshire and Worcestershire businesses have reported that their UK Sales have remained relatively constant. Over the last two surveys 45% of businesses reported increased sales whilst 37% had reported falls, just 1% different from last quarter. Equally, 14% of businesses reported a fall in sales. It’s useful to compare this situation with the British Chamber of Commerce’s data. Nationally, 41% reported increased sales, and 18% recorded a fall in sales. I think this can be seen as a positive indicator that our local economy is fighting its corner in the UK marketplace. Sales might be vital for any business, but cashflow and profitability drive to survival and growth are also important. The indications are concerning. The last three quarters have indicated pressures on cash flow in businesses across Herefordshire and Worcestershire. In this survey, 24% reported their cashflow had worsened in the last three months. Profitability is a similar concern, 42% expect their profits to increase, this is compared to 50% last quarter (43% v 50% nationally) and 26% of businesses in our region expect profitability to decline. Little encouragement really, but this figure rises to 28% in the national analysis. So, two things can happen. We can let market forces work through the maelstrom of challenges and barriers, or as is the case, as a Chamber of Commerce we can support businesses to survive and thrive through these unprecedented times. Whether it is forums to share best practice, training courses to upskill and retain your team, communication channels to highlight opportunity, our international trade team helping businesses with their certificates and documents, or events and expo’s to make connections you can be sure our team are ready to help.
AWARD-WINNING SUCCESS FOR PERSHORE HORTICULTURE STUDENTS
Three apprentices at Pershore College have won a major horticulture award and will now get the chance to attend one the sectors’ most prestigious conferences in Germany.
A trio of Crop Technician Level 3 students have won the International Plant Propagation Society (IPPS) 6-pack award – which gives six ‘new to the industry’ horticulturists the chance to attend the IPPS European Region Annual Conference in Zwischenahn in October. The selected students who have all just completed their first year of study are Tom McDonald, 24 from Evesham, Donné Perauld, 39 from South Africa but living in Farnborough, and Abigail Green, 27 from Worcester. At the three-day conference, the students will get the chance to speak with growers from across the continent, tour nurseries in Germany and assist the conference organisers on delivering the event. Tom McDonald, who works for New Leaf Plants in Evesham alongside his studies, said: “I’m really looking forward to speaking with growers and finding out how other countries manage their crops. To go from working as a seasonal staff member at New Leaf, to a full-time apprentice and now be selected to attend this conference is amazing.” Abigail Green works for The Bransford Webbs Plant Company. She decided to leave a career in the pub industry behind and pursue a career in horticulture during one of the lockdowns. “It’s been an amazing first year experience with Bransford Webbs and Pershore college, and this is a great way to top it off,” she said. “I’m really looking forward to seeing the technology they use with the watering, how they deal with pests and diseases, their approaches and how it differs from here in the UK.” Mark Diggines, trainer/assessor in horticulture at Pershore College, added: “We have historically had success in getting at least one student placed on this programme – but to have three this year is phenomenal. “We are proud of their achievements and look forward to hearing about all the new knowledge they have gained when they return.” To find out more about horticulture apprenticeships at Pershore College visit
www.wcg.ac.uk/study
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IT’S NOT INVISIBLE
The way we do business has changed so much in less than a generation. Who remembers waiting impatiently for the ink to dry on a fax, before walking to the right department with this latest sales order or enquiry, in one hand … and the days post in the other?
Much of what we do now, from stock-taking to employment references, from repeat orders to client records is effectively invisible. And yet, every element of a business’s activities has a time factor, or a need for resource or space, or it calls upon skills; which means, it all still has a cost. Ensuring that all of your systems are integrated, working harmoniously, robust, secure and ready for change is crucial. If your online shop fails to add the correct shipping costs, or your website isn’t capable of showcasing newly introduced sub brands, then it’s going to cost time and money to put right, move on and compete. Herefordshire-based We Are The Missing Link is seeing an increasing demand for a highly specialised service that can include website design and build, system integration, development, maintenance and protection of their clients online presence. Director Trudy Macklin explains; “We all seek growth, but at the same time, have to be aware of operating and profit margins. Profits usually increase when costs are reduced, or at least kept low by a business that is careful, efficient and forward-thinking. “We Are The Missing Link offers a consultancy approach that regularly highlights where clients can save money or avoid unnecessary expense in the long term. This is as much down to highlighting the consequences of poor decisions and omissions as it is to providing a comprehensive quote up front. “Much of what we can create, manage and develop might be seen as ‘back-office support’ or ‘built-in’; but it is no less important because it is invisible. Indeed, it is this silent integration that makes it all the more crucial that everything works perfectly enabling your business to grow and grow well.”
We Are The Missing Link will be at Business Expo on Thursday 13th October, as exhibitors and sponsors of the networking breakfast. See you there.
