BEDFORDSHIRE CHAMBER OF COMMERCE UPDATE Issue 4 Quarterly Newsletter 18 October 2016 IN THIS ISSUE Quarterly Economic Survey Results The results from our latest QES have been published and the outcome for Q3 2016 highlighted a significant dip in local business confidence with the results showing that 13% of respondents expected to see a decrease in both turnover and profits, the highest reported in the last 2 years The survey, the first covering the period after the EU Referendum, suggests that the UK economy is still growing albeit at a lower level than before the referendum and supports the British Chambers of Commerce forecast for growth of 1% in 2017. The results suggest that the near-term uncertainty following the vote to leave the European Union has led businesses to lower their expectations for turnover, profits and investment in plant/machinery and training. Employment numbers remained stable but future recruitment expectations softened compared to previous surveys. Domestic demand for Bedfordshire businesses strengthened in Q3 2016 compared to Q2 but still remains down when compared to previous levels reported 12 months ago. 37% of respondents registered an increase in sales whilst 15% saw a decline compared to 51% and 3% respectively this time last year. Advanced domestic orders or custom also showed a mix picture and although advanced orders increased for 36% of the respondents compared to 24% in Q2, 18% of businesses reported a decline, the worst reported figures for over 2 years. These results suggest that although local economic growth continues it does so at a much weaker pace. The bottom line Although it s important not to take one quarter s survey results in isolation, the survey does show that growth has slowed further since the EU Referendum and business confidence has been significantly dented. The overall rate of growth remains vulnerable and concerns over the strength of the global economy has reduced confidence and high degrees of uncertainty are causing businesses to adopt a wait and see approach. To see the report in full please visit www.chamber-business.com Powering Export Success With nearly 90% of its revenues being derived from Exports Hayward Tyler is a fantastic example of a UK based business whose success is built on its ability to work in global markets. Accolade for THSP at Business Awards THSP Risk Management has been crowned The Excellence in Service winners in the eastern region heats of the Chamber Business Awards 2016.
BEDFORDSHIRE CHAMBER OF COMMERCE UPDATE Issue 4 2 Powering Export Success Nestled between Crawley Green Road and Kimpton Road, and a stone s throw from London Luton Airport, Hayward Tyler is one of Luton s best kept industrial secrets. For a business that has been an integral part of the local landscape since the 1870s, employs over 200 people and on whose products millions of people indirectly rely globally, its contribution to the local and national economy is often overlooked. We recently caught up with Group Chief Executive, Ewan Lloyd-Baker, to find out more. Great British engineering brands, like Hayward Tyler, have a well-deserved kudos for reliability and quality around the world. We value our engineering heritage, our links to Luton, as proven by our ongoing investment totaling 20million in our Centre of Excellence here in the town, the largest investment made by the Group in over 50 years. Hayward Tyler has a rich and varied history having started life in 1815 as a business focused on fluid applications including plumbers fittings and hydraulic presses. It moved from central London to its current site in 1872 and set about building not only a new factory next to the Great Northern Railway Line (with its own siding) but also a foundry, sanatorium and chapel. In the early 1900s, at about the same time that Hayward Tyler became the founding member of the local Chamber the company developed a prototype motor car with a belt-driven eight horsepower engine. Unfortunately a fire put paid to these plans but Hayward Tyler continued to develop its motor business in other ways becoming the first company to develop submersible electric motors for mine-dewatering operations and marine salvage applications used at Scapa Flow in WW1. In the late 1940s Hayward Tyler developed the idea of a glandless pump which was then used in both the conventional and nuclear power markets, supplying pumps to Calder Hall in 1956, the world s first civil nuclear power station. Hayward Tyler is now the worldwide market leader in the design, engineering and manufacture of boiler circulating pumps (BCPs) with over 2,300 units supplied globally out of a total population of circa 3,500 units, representing a two-thirds market share. In China alone it is estimated that Hayward Tyler performance-critical equipment is operating in power stations which generate electricity for over 200 million people. Looking forward Hayward Tyler is focused on continuing to deliver performance-critical solutions for the most demanding requirements to meet current and future global energy needs and is currently working on the next generation of green tidal generators and mobile flood defence pumping stations as two examples. So what next for Hayward Tyler? Ewan Lloyd-Baker picks up: We have recently bought another venerable British engineering business, Peter Brotherhood, so now have over 500 employees globally and facilities in the UK (Luton, Peterborough and East Kilbride), the US, China and India. We have a vision built around Energy in motion and are working to transform existing technologies and innovate new technologies, to develop new products and solutions and generate new ideas and new thinking. This will ensure our continued success and ensure that we create a legacy which the town of Luton and county of Bedfordshire can be proud. To read the full article please visit our online Focus magazine at www.chamber-business.com
BEDFORDSHIRE CHAMBER OF COMMERCE UPDATE Issue 4 3 Accolade for THSP Risk Management at 2016 Chamber Business Awards CHAMBER FACTS 116m The total value of goods we have helped our members export outside of the EU in the last 12 months. 92 The number of countries we ve help our members export to. FOR MORE INFORMATION Call our Export Team on 01582 522448 or email export@chamber-business.com 1,076 Members of our LinkedIn group 5,071 Followers on Twitter THSP Risk Management from Bedfordshire, has been crowned one of the winners in the eastern region heats of the Chamber Business Awards 2016. Now in their 13th year, the Awards are a highlight of the business calendar, and they pay tribute to the key role that local businesses play in driving the UK economy. The Excellence in Customer Service winner will now go forward to represent the eastern region in the national finals, which take place in London in November. Francis Martin, President of the British Chambers of Commerce (BCC) said: Businesses are the driving force of the UK economy. Their creativity, hard work and acumen are what makes us one of the world s strongest and most resilient economies, and they deserve recognition for the crucial role that they play. Our judging teams across the country are consistently impressed by the number of high calibre entrants in the awards, and this year s competitors are no different. The Chamber Business Awards are the perfect opportunity for us to celebrate our business community s achievements, to take stock of the outstanding performances of UK businesses over the past year, and to encourage and inspire others to follow in their footsteps. THSP provide health and safety, employment law and environmental consultancy work and training courses throughout the UK, Europe and Internationally. Check out their website at www.thsp.co.uk Working together, achieving more. More information on the Chamber Awards can be found at www.chamberbusinessawards.co.uk
BEDFORDSHIRE CHAMBER OF COMMERCE UPDATE Issue 4 4 First ever London Luton Airport (LLA) Jobs and Careers Fair Cheryl Smart MBE CEO Bedfordshire Chamber of Commerce. How local people are benefitting from business investment. Bedfordshire is on a roll at the moment. From the Airlander project at Cardington to progress in plans for a new stadium for the Hatters, there is a real sense of economic momentum across the region. One of the challenges the business community always faces is communicating how economic momentum makes a difference to the lives of individuals. That s why it was such a pleasure to see the huge success of the first ever London Luton Airport (LLA) Jobs and Careers Fair held this week. We have long known the numbers and figures involved in LLA s transformation project: 110million to transform the airport; a 50% increase in capacity; an expected 500million boost for the Bedfordshire economy by 2030. The jobs and careers fair, however, really showed the positive impact on local people. 32 big-name employers were offering over 400 current vacancies at the event. There was real excitement among close to 1,000 attendees, all eager to take advantage of the great opportunities on offer. And it is easy to understand why. From engineering to aircraft control, retail management to logistics, the airport offers really high quality jobs. These kind of roles give local people training opportunities, career progression and the chance to work at the cutting edge of technology. In fact, research shows that the average airport wage is 38,000, 40% higher than the national average. These exciting opportunities really bring to life the true impact of securing investment and growth in Bedfordshire. What was also clear from the event is how widely the positive impact of LLA s success will be felt. An independent report suggests that by 2030 over 5,400 jobs will have been directly created across the airport s supply chain within Bedfordshire alone. And since business thrives on confidence, LLA s investment gives confidence to others. Just think of all the exciting new projects that have been announced since the airport s transformation began: Luton Borough Council is now working with the airport to deliver a new 200 million lightrail link between Luton Airport Parkway station and the terminal building. There is real momentum behind the new 17,500-seater Power Court stadium for Luton Town Football Club. The government awarded Luton a new Enterprise Zone at the airport. The new Luton Investment Framework, announced in April is looking to deliver developments worth 1.5 billion over the next 20 years; major projects like Newlands Park and Napier Gateway are already moving forward. There is no doubt that the airport s expansion has helped give other investors the confidence to press ahead with these exciting new projects. Most importantly, these new investments will in turn create more jobs, exciting opportunities and better facilities for local people. The enthusiasm of attendees at the LLA Jobs and Careers Fair was a powerful example of the positive impact business investment has on local communities. For more news on what s happening in Bedfordshire take a look at our website www.chamber-business.com/news
BEDFORDSHIRE CHAMBER OF COMMERCE UPDATE Issue 4 5 What s Happening Nationally? Autumn Statement: change tone, boost business investment, and improve infrastructure, says BCC Ahead of the Chancellor s Autumn Statement on Wednesday November 23, the British Chambers of Commerce (BCC) is urging the government to use its reset of fiscal policy to pursue measures that incentivise business investment, improve infrastructure, and demonstrate the UK government s continued support for business. Pre-existing concerns over a slowing economy have been intensified by the political and economic uncertainty that followed the electorate s historic vote to leave the European Union. The BCC s recent Quarterly Economic Survey showed that businesses have lowered their expectations for hiring, turnover, and investment in plant, machinery, and training in the coming year. The BCC believes that the Autumn Statement can create the foundations for the UK to successfully navigate the coming transition period, and remain a great place to do business for firms of all sizes. The BCC submission, which was handed to the Chancellor when the BCC took a delegation of businesses to meet him at Number 11 in September, proposes seven key measures: A pledge to introduce no new input taxes or other significant costs on businesses for the remainder of this Parliament matching the pledge made to voters on income tax, NICs and VAT during the 2015 General Election campaign Further fundamental reform of business rates exclusion of plant and machinery from valuations; and bringing forward the switch of the annual uprating from RPI to CPI to 2017, from 2020 Temporary widening of the Annual Investment Allowance to include business premises improvements for a period of five years, alongside investments in plant and machinery Improving the implementation of the Apprenticeship Levy levy-paying businesses should be able to support high-quality workplace and vocational training, in addition to apprenticeships Direct investment in quick-start infrastructure projects such as housing and broadband to crowd-in private sector investment in infrastructure, regeneration and growth. The Chancellor has already responded in part to this with a new housebuilding programme Increased resources to directly support SME export plans direct monetary support for firms to explore new markets or deepen sales abroad Creation of an indirect tax road map to give businesses much needed clarity to invest with confidence Adam Marshall, Director General of the British Chambers of Commerce, said: The Autumn Statement gives the government a great chance to set the tone for its relationship with British business, by pulling out all the stops to support investment, infrastructure improvements, and business confidence. The Chancellor made the right move when he signaled his willingness to use historically-low interest rates to invest prudently to support growth, and he has a golden opportunity now to use this fiscal flexibility to crowd in business investment. Plans to lower business costs and support investment would help firms take risks and seize opportunities in spite of the ongoing uncertainty surrounding the Brexit process. Westminster must do everything in its gift to improve the business environment and firms will repay that backing with investment, hiring, training and export growth. Bedfordshire Chamber of Commerce is an accredited member of the British Chambers of Commerce for further information see www.chamber-business.com or contact us on 01582 522448.
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