Member Article

Chambers report mixed results for Yorkshire business confidence

Confidence amongst businesses in the region remains high according to the latest survey results from West & North Yorkshire Chamber of Commerce, but mixed results in Sheffield show it’s not all smooth sailing for Yorkshire businesses.

The survey for the first quarter of 2014 was conducted during February and March, and provides an indication of business conditions and trends. 900 businesses were surveyed across Leeds, Bradford, York and North Yorkshire.

The survey highlighted further growth amongst service sector businesses both domestic activity and overseas trade across large parts of the region.

Confidence is also improving amongst manufacturers with 50% reporting recruitment activity in the last three months, although finding the right talent is still proving difficult especially for skilled manual and technical staff.

The survey of business owners and directors showed however that concerns over business rates and increased competition remained key for business in our region.

Sheffield Chamber of Commerce however, has questioned whether the country is seeing the right type of recovery for sustainable growth, following their findings.

Confidence amongst businesses in the Sheffield City Region continues to be a mixed picture, according to the latest British Chambers of Commerce Quarterly Economic Survey (QES), which looks at the manufacturing and services sector between January and March 2014.

Manufacturing in the Sheffield region saw an “unusually large” drop in export sales and orders in the first three months of the year, compared with the last quarter of 2013, however there was an increase in UK sales and orders.

Employment expectations saw a slight reduction, while investment in machinery and training was a slight increase on last year’s final quarter. Cashflow continues to be low. However, turnover and profitability remain at very high levels.

In the Service sector there was an increase in export sales and orders, while UK sales and orders remained the same as the previous quarter. Employment expectations, cashflow, turnover and profitability were also static, but there was an increase in investment for machinery and training.

Richard Wright, executive director of Sheffield Chamber of Commerce, said: “While these latest QES results do not paint a generally bad picture they are not hugely inspiring either. Both sectors fair better than in the same quarter a year ago, but only slightly.

“The results question whether we are seeing the right type of recovery and whether we are laying the foundations to allow us to trade our way in the world. How is the economy addressing the country’s international trade deficit to allow us to start making a surplus?

“The drop in manufacturing exports sales and orders is disappointing and an indication of how fragile the city region’s economy is. We need to be making greater strides forward in order to achieve meaningful and sustainable long-term growth to help prevent these fluxes from occurring in the future.”

Concerning the results for North & West Yorkshire Chamber results, Mark Goldstone, head of business representation and policy said: “The year has got off to a good start but more needs to be done to ensure a ‘great’ recovery. Issues such as energy costs, access to finance and access to talent still need to be addressed.

“The manufacturing sector is a hugely important sector to this region with the value of exports out of Yorkshire & Humber at £17.5bn last year. We must ensure they have access to the widest possible talent base.

“The Chamber will continue to work with policy makers, local authorities and education providers to ensure there is sufficient interest generated amongst young people, parents, schools and teachers about the opportunities a manufacturing career can offer.”

This was posted in Bdaily's Members' News section by Clare Burnett .