BUSINESS MANIFESTO 2020/21 - Herefordshire
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Our Patron Members CONTENTS Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 About Us . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2020 Business Priorities . . . . . . . . . . . . . . . . . . . . . . . . 8 Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Skills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 International Trade . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Sustainability in Business . . . . . . . . . . . . . . . . . . . . . . . 20 Technology & Innovation . . . . . . . . . . . . . . . . . . . . . . . . 22 Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Herefordshire Business Environment . . . . . . . . . . . . . . . . . 26 Herefordshire Business Statistics . . . . . . . . . . . . . . . . . . . 28 Worcestershire Business Environment . . . . . . . . . . . . . . . .30 Worcestershire Business Statistics . . . . . . . . . . . . . . . . . . 32 Chamber Policy Contacts . . . . . . . . . . . . . . . . . . . . . . . 34
“ Following a period of “Herefordshire & Worcestershire Chamber of Commerce conducts research with more Businesses continue to be bombarded with a barrage of additional costs and business survey in the country (the Quarterly Economic Survey), which has repeatedly will emerge as demand for sustainable solutions grow, such as those who produce rigorous quantitative businesses in our Quarterly Economic Surveys than any other Chamber in the country. We administrative burdens tying up their cash flow and decimating profitability. At a demonstrated that political upheaval is now so closely wedded to the future terms of products from sustainable materials or those who can offer efficiency gains by and qualitative pride ourselves in the evidence-based approach that informs our business engagement and time when consumer spending is the only redeeming factor in a slowing global and trade that, economic indicators plummet and fluctuate in line with the political chaos altering processes. We will continue to urge government to commit to support and fund consultation with over public affairs work. Delivering such an in-depth programme of consultation not only allows us national economy, government would do well to alleviate the cost burden on in Westminster. As many businesses look for efficiency gains and ways to improve businesses to produce innovative solutions to environmental challenges. Rigid targets that 4000 businesses, I am to state with confidence which challenges and opportunities businesses currently face, but it businesses to avoid the need to pass on costs to the consumer. their customers’ experience, their reliance on cloud-based systems to deliver online are not achievable and which are detached from the UK’s current infrastructure place delighted to launch also enables the Chamber to identify potential barriers to growth and opportunities for After a year of unprecedented numbers of products and services is highlighting the absence of adequate digital infrastructure. undue pressure on business and stifle real innovation. We will lobby government to the Herefordshire business on the horizon. job vacancies and record high employment levels, the labour market is showing signs Be it a professional services legal firm or a UK based manufacturer looking to introduce involve businesses in the decision-making processes associated with carbon targets to & Worcestershire This document sets out the issues identified by businesses as their key priorities for 2020/21. of beginning to soften. Whilst it may have passed its peak, the legacy of a tight labour industry 4.0, the technological changes and innovation currently being explored ensure solutions to push this agenda forward are innovative and impactful, as well as Chamber of Commerce It also details the focus of our policy work for the forthcoming year. Working closely with the market will continue to shape recruitment and retention challenges into 2020. A limited by businesses will be contingent on superior speeds and greater coverage realistic and practical. 2020/21 Business British Chambers of Commerce and our 53-strong Chamber network, which represents over a million supply of workers has elevated candidate expectations; businesses have never been of digital connectivity. At its core, this document focusses on operational and legislative barriers to Manifesto detailing the working professionals, the Chamber will lobby government to create a legislative and economic held to higher account when it comes to the salary and benefits packages they offer. The As we enter a new decade of business, societal concern for climate change and the growth. By bringing businesses together as a collective, the Chamber continues to Chamber’s key business environment that is conducive to business growth. knock-on effect for retaining those already in work drives a ripple effect up the business, environmental impact of human activity is placing additional pressure on businesses to demonstrate that the business community is so much stronger together. It’s an Sharon Smith priorities for local and Areas covered in the 2020/21 Business Manifesto include the costs of doing business, skill shortages, as long-standing staff expect similar opportunities for salary increases or produce sustainable solutions and implement more eco-friendly processes. Considering exciting time to be in business. Although the unprecedented levels of uncertainty Chief Executive Herefordshire & national government.” trading overseas, infrastructure, sustainability in business, and technology and innovation. As greater personal development. ways to reduce environmental impact will prove very beneficial to certain businesses, associated with the EU Exit negotiations can often eclipse the domestic narrative, it has Worcestershire Chamber business enters a new decade, it seems fitting to At the time of writing, our future trading both from a cost and efficiency point of view. never been more important for businesses of Commerce reflect on the trajectory of the business community relationship with our European neighbours Innovation and technology in this field is to take the time to lift their head above the and local economy. remains uncertain. The implications for likely to be led by the private sector, where parapet and take in the opportunities economic growth are clearly demonstrated commercially viable solutions should be on the horizon.” by the results of the largest private sector encouraged to lead the way. New businesses 4 Herefordshire & Worcestershire Business Manifesto 2020/21 enquiries@hwchamber.co.uk | www.hwchamber.co.uk | @hw_chamber 5
ABOUT Supporting all business 170 Improving Facilitating the largest local business US the health and leaders’ sectors free events wellbeing of network per annum to connect and grow your business 30k employees through ‘Worcestershire OUR VISION Works Well’ Delivering Delivering “Working with the whole business Delivering 230 Representing statistically Chamber 75k community to build sustainable representative International economic growth in Herefordshire over reports from our Trade support to 300 and Worcestershire.” days training research hub Sector A critical pathway professionals to improve specific for raising the OUR MISSION local skills within our forums profile of local 680 “To provide access to solutions that local businesses need in local network businesses businesses order to achieve their goals, through engaging, influencing and connecting. attendees at our To be responsive to the Chamber Business external environment, A network of Public-private Leading over Awards ceremony 8 th offering responsive and partnership Chamber 1,500 relevant approaches.” celebrating local Not-for-profit Delivering the success facilitator for for engaging Worcestershire business businesses company Growth Hub with national largest Chamber members government in the UK policy makers 6 7
2020 45% 35% 32% 20% 19% 18% BUSINESS Attracting and retaining appropriately skilled workers Red tape and regulations Energy costs Exporting to a new market Identifying more sustainable materials e.g. packaging Access to finance PRIORITIES 30% Access to funding 31% The lack of work ready 32% Business taxes 16% 16% Taking on apprentices 16% Implementing from the EU and young people for the Managing and The following priorities were identified supporting an digitalisation alternative funding future workforce by the 600 businesses who completed post Brexit ‘ageing workforce’ our Quarterly Economic Survey and as a result of the qualitative data collected by our policy team throughout the year. 27% 26% 26% 13% 12% 12% The Chamber asked businesses to identify their top 10 priorities. The list adjacent Managing health Implementing new The cost of Re-using waste The difficulties associated Transport links via demonstrates the most commonly and wellbeing in the technologies business rates products with the shift to a low the road network selected issues. workplace carbon economy 21% 22% 23% 25% 9% 11% 12% Mobile network Reducing your Cyber crime The costs The Access to Implementing coverage for carbon footprint and process apprenticeship overseas labour automation calls and data of importing policy 21% 21% 20% 20% 8% 6% 6% 6% Access to broadband Expanding export Business Implementing Accessing strategic Links to research The rail Starting in current markets premises availability innovation International Trade institutions network to export advice, guidance and training 8 9
Costs When all the responses to this consultation Your Challenges were consolidated, the most frequently identified barriers to growth were % of businesses who identified the following cost issues as a barrier to growth associated with costs. Poorly-timed Red tape & regulations 35% increases in business costs – including compliance with Making Tax Digital, Business taxes 32% higher business rates for some firms, Energy costs 32% increased employer pension contribution requirements, and more – are raising costs Business rates 26% pressures for companies across the UK at a Cyber crime 23% time when government should be looking Access to finance 18% to reduce rather than increase burdens. 0% 10% 20% 30% 40% Our Policy Commitment: Through the Chamber network and British Chambers of Commerce, we will lobby to reform business rates and replace them with a fairer system. 10 11
How to tackle challenges and maximise opportunities: Red tape and regulations Business rates For the latest information regarding Businesses can provide the Chamber how to lessen the administrative with case studies detailing the barriers burden of red tape and regulations, visit and challenges that the current system the Chamber website and sign up to presents to business, to allow us to our policy newsletter. lobby for a fairer system on your behalf. Business taxes Cyber crime Fill in our Quarterly Economic Survey Download a copy of our 8 simple steps to demonstrate the impact of business to make your business more secure and tax on your business. This will allow protected from the costs associated the Chamber to lobby for changes with cyber crime from our website. to business taxes and create a Making the most of Artificial Intelligence for business business environment conducive Access to finance to success and growth. The Chamber hosts a series of Growth AI is already affecting most aspects of our lives including business; Forums throughout the year which where it is being used to solve problems by using big data to inform key Energy costs provide the opportunity to hear from decisions. Organisations are beginning to see the capabilities that AI can With rising energy and resource costs, business leaders and industry experts and an increasing urgency to act on who have developed best practice. provide, and are using these to produce and gain real value from their climate change, the need to improve Previous topics of discussion at the data, whether it be for internal purposes or for clients. resource efficiency within your business financial growth forum have included: is now as important as ever. The Business the legal and insurance implications of With the additional cost savings from implementing AI systems, Energy and Efficiency Programme growing a business, how to access and employers should also focus on upskilling their current employees. (BEEP) can provide free support to raise finances for growth and finally, identify opportunities and grant funding advice on how to find new revenue As with all new technology, the subject of regulation is one that needs up to £20,000 and 40% of project costs streams and access new markets. to be addressed. It is fundamental to address the potential pitfalls of to make these savings happen. Contact Many businesses will be able to utilise new technologies and have regulations in place to address them. info@business-central.co.uk to find out high street bank lending as a source There is currently no specific legal provision for the regulation of the if you are eligible for grant funding to of funding for their business growth. reduce your energy costs. The Marches However, alternative sources of funding development or the use of AI applications in the UK; however, a range Renewable Energy Scheme (MarRE) are also available. Businesses can visit of existing regulatory regimes may overlap this territory and be used is also available to eligible businesses, the British Business Bank and Midlands to some extent to regulate these activities. We expect the new who can apply for a 50% grant towards Engine Investment Fund website for decade to bring clearer policy developments. the installation of eligible renewable more information at www.meif.co.uk. technologies on their premises. Contact delegatedgrants@herefordshire.gov.uk Helen Davenport for more information. Partner, Gowling WLG 12 13
Skills While new technologies are driving the Your Challenges Fourth Industrial Revolution, ultimately, it is people who will bring it to life in % of businesses who identified the following skills issues as a barrier to growth businesses. As advances in technology continue to transform the world of work, Attracting & retaining employees 45% education systems will need to become more connected to the realities and needs The lack of work ready young people 31% of the local economy, national economy and Managing health & wellbeing in the workplace 27% society as a whole. Taking on apprentices 16% Businesses will need to engage with Managing an ‘ageing workforce’ 16% education models to ensure they adapt to equip young people with appropriate skills Access to over seas labour 11% and careers advice for the future. At the same time, the current work force will require The apprenticeship policy 9% workplace training and development to keep pace with technological change which alters 0% 10% 20% 30% 40% 50% Last year the processes they are used to. Introducing the National policies which not only attract and retain Chamber network employees will be crucial to business success in the current zeitgeist which is characterised Our Policy Commitment: successfully: by an incredibly tight labour market. • Through the Chamber network and British Chambers of Commerce, •S ecured a two-year post-study we will lobby government to invest in our skills base and reform the work visa to remove barriers Businesses will also need to implement Apprenticeships Levy so that more small firms can access high-quality to accessing skills. policies which recognise the importance training locally, at an affordable cost. of managing health and wellbeing in •S ecured the expansion of the the workplace, as well as those which • T hrough the Chamber network and British Chambers of Commerce, we Shortage Occupation List, accommodate the phenomenon associated will lobby government to deliver a sensible immigration system that gives bringing simplicity and flexibility with the changing demographic structure firms access to essential overseas talent at all levels. to recruitment for businesses. of the UK, known as the onset of an ‘ageing workforce’. Businesses who cultivate a culture of reskilling, upskilling and lifelong learning will overcome the challenges on the horizon. 14 15
How to tackle challenges and maximise opportunities: Attracting and retaining your CIPD CPD portfolio. Alternatively, businesses can appropriately skilled workers get in touch with Worcestershire Works Well to access Visit our website to fill in and download the 2019/20 this free framework and accreditation scheme designed Salary & Benefits Report, in partnership with Hewett to support businesses to improve the health and Recruitment, to benchmark the renumeration packages wellbeing of their employees. Improved employee health you offer. The report allows you to view the minimum, and wellbeing has been shown repeatedly to improve maximum and average salary for over 50 roles in relation profitability and productivity of businesses. Enquiries can to the size of your business. It also provides detailed be sent to wwwadmin@worcestershire.gov.uk. information on the most common benefits packages on offer in the counties, as well as case studies of companies Businesses in Herefordshire are encouraged to demonstrating recruitment and retention best practice. contact the Chamber, as we are working on developing partnerships to deliver a health and The lack of work ready young wellbeing event in Herefordshire. Business are nothing without people for the future workforce their people. We expect them to Engage with the ‘Inspiring Worcestershire – Creating Taking on apprentices Something changes our Future Workforce’ project. There are many ways Get in touch with Worcestershire service clients, build products, innovate in business every 90 days you can engage; from pledging an hour of your time Apprenticeship hub by visiting the following solutions, work with each other, and work with so it’s important that flexibility and to help provide accurate career pathway information website www.worcsapprenticeships.org.uk or for stakeholders. We expect them to go the extra mile adaptability are built in. With skills we for your industry sector, to becoming an Enterprise Herefordshire visit the following website and exceed expectations. But how can businesses Advisor or showcasing your business at one of the skills’ www.careersandenterprise.co.uk. also need flexibility and adaptability, but shows in the two counties respectively. More details can realistically realise such delivery if the very people they are what does this mean? For me it is all about be found on the following website for Worcestershire The apprenticeship policy reliant on are not happy, healthy and engaged. If they are having the life skills that will allow you to learn www.skills4worcestershire.co.uk. For Herefordshire Businesses with experience of using the apprenticeship not aware of the business plans, their own objectives and the system who would like to shape future apprenticeship the hard skills you need to be successful. Things businesses, more information can be found by using expectations placed upon them then can we really be surprised this website www.herefordshireskills.co.uk. policy can provide case studies and examples of the like emotional intelligence, communication skills, challenges associated with this policy. Herefordshire & when they underperform? It is not just about engagement thinking skills, reasoning skills, resilience, and self Support to manage health and wellbeing Worcestershire Chamber of Commerce participates in either – we would not expect an athlete to perform to their reliance. If you don’t possess these skills then in the workplace and managing the impact of the British Chambers of Commerce Employment and best without adequate training, coaching and nutrition: it is Skills Group which uses evidence-based cases to call you will struggle to learn the hard skills you changes to their employee demographic associated no different for the people we employ. To allow people with an ‘ageing workforce’ for reform to policies which relate to the skills agenda. need for your role. If you have these skills Join our confidential network of HR Professionals. This Your experiences can be made anonymous and used to to give their best, businesses need to facilitate a culture you are capable of anything! network comes together on a regular basis in different make arguments to government and specific ministers. and an environment that enables them to do so. locations across the two counties to hear from industry Similarly, if your business would like to provide case Deborah Gittoes Health and wellbeing aren’t ‘nice to haves’ – experts. Presentations and points of discussion focus on studies or has examples of how access to overseas Managing Director, they are game changers. Arctic Circle employment law updates, progressive work practices labour is fundamental to your operations, get in touch and to share best practice and seek advice and support with the Policy Department to allow your experiences to Chris Walklett from peers in an open and supportive environment. shape the government’s approach to immigration. Tax Partner, Bishop Fleming Attendance at this event can be used to count towards 16 17
International How to tackle challenges and maximise opportunities: Access to EU and post Brexit funding Trade Titan Steel Wheels has established its position as a To find out how to access funding from the EU and alternative world-leading Off Highway wheel manufacturer through funding post Brexit, sign up to the Chamber’s International Trade investing in the growth and skills development of our newsletter to be notified of opportunities. people and having a strong history of building trading The costs and process of importing partnerships around the globe. With over 90% of our The International Trade team deliver import-focused international production being exported directly to major OEM’s trade training, import customs declarations and has access to Trade is a fundamental part of the UK economy. Entering new within our industry, we find the challenges and also specialist advice through consultants Strong and Herd. Contact our markets can bring a plethora of opportunities for businesses and International Trade Team at the Chamber for more information. can facilitate accelerated growth. While many will steer clear of the opportunities of competing within global markets exporting given the uncertainty around future trading conditions, continue to increase; having access to the required Expanding exports in current created by the process of EU Exit, those who seize this opportunity level of support when needed is really important. While markets or into new markets and exporting for the first time to find out more about overseas opportunities will reap the benefits. Europe will always be a key market for our continued The International Trade team delivers a range of services to growth efforts, the ability to be competitive and expand support. This support includes, but is not limited to: export documentation, export customs declarations, in depth international in other markets which offer significant opportunities will business diagnostics and planning, international digital marketing Last year the National be vital to our continued success, particularly as we head communications support, intellectual property and contractual Chamber network successfully: towards 2021 and beyond. support, international market research, language and culture • Convinced government to automatically enrol 95,000 workshops, access to commercial networks via British Embassies UK firms in Transitional Simplification Procedures, thus John Brighton, and High Commissions in over 100 countries worldwide, links to simplifying customs requirements. General Manager, incoming meet the international buyer delegations, access to sector- Titan Steel Wheels Limited based international market visits, an extensive range of International • Convinced government to automatically issue Trade training courses (covering over 20 different International Trade UK businesses with EORI numbers, simplifying trade procedures. Your Challenges subject areas) and access to country-specific export advice for new and experienced exporters. Visit our website to find out more. % of businesses who identified the following cost issues as a barrier to growth Accessing strategic International Our Policy Trade advice, guidance and training Access to EU and post Brexit funding 30% Commitment: The International Trade team also offers 50 international trade Through the Chamber courses covering over 20 international trade subject areas designed The costs and process of importing 25% network and British Chambers for new and experienced exporters. In addition, businesses have Expanding export in current market 21% of Commerce, we will lobby access to Department for International Trade (DIT) advisors for government to avoid a more in-depth market development support (see above) and Exporting to a new market 20% no-deal exit from the EU and the Chamber’s own Commercial International Services team for Accessing International trade advice 8% deliver a smooth transition international trade documentation guidance. Starting to export 6% giving firms time to prepare. 0% 10% 20% 30% 18 19
Sustainability Your Challenges Our Policy % of businesses who identified the following skills issues as a barrier to growth Commitment: Lobby government to involve in Business Reducing the carbon footprint of business 22% business in the decision- Identifying more sustainable materials 19% making processes and targets associated with climate change Reusing waste products 13% to ensure solutions to push this Adapting to a low carbon economy agenda forward are innovative 12% and impactful as well as 0% 5% 10% 15% 20% 25% realistic and practical. Investing in sustainable business practices has moved from the realm of Corporate Social Responsibility to a business-critical issue. In the face of the deepening climate crisis, the business sector is redefining its relationship with sustainability and energy efficiency. More companies are managing sustainability How to tackle challenges and maximise opportunities: to improve processes, pursue growth, and add value to their Reducing the carbon footprint of business companies rather than focusing on reputation alone. We’ve To find out how to identify more sustainable materials and how to reuse waste products for a more reached a tipping point where operational efficiency and cost effective and energy efficient process, join the Chamber at our quarterly Sustainability Forums. lowering cost is now more commercially viable through The Business Energy and Efficiency Programme (BEEP) can provide free support to identify opportunities sustainable processes, with cost impetus superseding and grant funding up to £20,000 and 40% of project costs to make these savings happen. Contact corporate reputation. As a manufacturing company that predominantly uses info@business-central.co.uk to find out if you are eligible for grant funding to reduce your energy costs. If your business is looking to implement a large-scale renewable energy project or has the potential for The notion of a circular economy will alter how we conceptualise plastic to make products, it is easy to become embroiled high-tech green growth, the low carbon opportunities programme is also able to provide support. the use of resources and waste products, with significant with the wider impacts of the (mis)understanding of the use The Marches Renewable Energy Scheme (MarRE) is available to eligible businesses who can apply for implications for the regulatory framework in which businesses of the term sustainable. The reality for Neoperl, and indeed a 50% grant towards the installation of eligible renewable technologies on their premises. Contact will operate during this new decade. Businesses in the energy, many other manufacturers, is that sustainable practices delegatedgrants@herefordshire.gov.uk for more information. To find out more about the local energy extractive, construction and transportation industries are the strategy in Worcestershire visit the Worcestershire Local Enterprise Partnership’s website at www.wlep.co.uk. most likely to find themselves exposed to potential regulatory actually fit very well with their long-term business goals. To find out more about the local energy strategy in Herefordshire, visit the Marches Local Enterprise and natural resource constraints. For Neoperl specifically, as a worldwide expert in the Partnership’s website at www.marcheslep.org.uk. Manufacturers will do well to familiarise themselves with the manufacture of stream and flow control devices which Adapting to a low carbon economy, identifying more sustainable material and reusing waste products government’s agenda set out in the government policy paper are mostly made from plastic, the intent of the devices in For larger businesses whose activities have a strategic impact on the local, regional and national economy, ‘Resources and waste strategy for England’ (2018). This strategy controlling water can significantly reduce the amount of we also offer a sustainability roundtable. From plastic packaging substitutes to the use of alternative fuels sets the tone for future legislation and makes clear that extended such as hydrogen, this group brings together influential stakeholders to identify solutions which can be wasted water for any given use event. Quite simply, a producer responsibility will be at the forefront of future regulation. rolled out to the business community and establish the two counties as a leading voice in the sustainability The foundation of this paper is the ‘polluter pays’ principle, making flow regulator installed in a shower saves water agenda. This group also discusses the longer-term institutional difficulties associated with the shift to it clear that manufacturers will bear a heavier financial burden. and energy when in use. a low carbon economy. Kevin Gates Managing Director, Neoperl U.K. Ltd. 20 21
Technology How to tackle challenges and maximise opportunities: Implementing technology and innovation BetaDen, the technology accelerator in Worcestershire, offers the opportunity for entrepreneurs and scale up businesses to join a cohort of businesses at the cutting edge & Innovation of technology and innovation. For those looking for business premises, the Malvern Hills Science Park and the Midlands Centre for Cyber Security in Herefordshire, provide ideal business facilities for business with a technology and innovation agenda. There are several other programmes available for businesses interested in technology and innovation. Innovate UK is part of UK Research and Innovation, a non-departmental public body funded by a grant-in-aid from Economic growth is driven by innovation and technological the UK government. Innovate UK exist to drive productivity and economic The advances in digital improvements, which reduce the costs of production and enable growth by supporting businesses to develop and realise the potential of technologies over the past higher output. It’s an exciting time to be in business in the two new ideas. For more information, visit the following UK Research and decade have transformed how and counties, demonstrated by the fact that a quarter of businesses are Innovation website www.ukri.org . where we interact with customers. They interested in implementing new technologies. expect to be able to access the information The Proof of Concept scheme is also available. This scheme supports they need instantly, wherever and whenever they businesses to take new products and services to the market and allows need it. We have invested significant resources With the development of the 5G test bed in Worcestershire, the them to investigate, advance and protect early stage innovative ideas third cohort entering the BetaDen technology accelerator in developing the systems and solutions to meet these and to commercialise new innovations. Contact Jane Holmes on requirements, from tools which allow customers to Worcestershire, the growth of Malvern Hills Science Park and the jane@centraltechnologybelt.com for more information. opening of the Midlands Centre for Cyber Security in Herefordshire, easily conduct their own technical calculations, to the two counties hold huge amounts of potential to develop cutting- Worcester Innovation, also known as WINN, is an additional collaboration courier tracking systems providing real-time delivery edge technology and drive innovation. between many of the Innovators in the region, aimed at consolidating information. innovation support activities, creating a community of innovators and ensuring We expect this digitalisation to intensify throughout the As a region characterised by the dominance of advanced that our innovative history continues into our innovative future. 2020’s as our sector moves increasingly towards cloud- manufacturing, businesses in the two counties are driving To find out more visit the WINN website on www.winn-hub.com. based collaborative approaches to building design, the use of Artificial Intelligence, Virtual Reality and construction and maintenance. As manufacturers, we are automation in this sector. Implementing digitalisation and automation helping to lead this change, by developing detailed 3D Your Challenges Businesses operating in the manufacturing sector who would like to implement product models which are the building blocks for these new technology and innovation can gain access to industry leaders through our new approaches. % of businesses who identified the following cost Our Policy Commitment: issues as a barrier to growth highly sought-after Manufacturing Forums. This group of manufacturing businesses Adrian Pargeter share insights on a range of topics from automation and Industry 4.0 to lean To lobby government to continue to provide funding and tax operating models. For businesses in the professional services industry, the Growth Director of Technical, incentives that encourage innovation for businesses who want to Implementing new technologies 26% Forum and the Technology Forum provide the opportunity to learn from leading Marketing and Regulatory Affairs, introduce technology and innovation into their business. businesses who have introduced digitalisation and automation into their organisation, Kingspan Insulation Implementing innovation 20% facilitating productivity and efficiency gains. Implementing digitalisation 16% Implementing automation 12% Links to research institutions The Chamber has strong links to research institutions including the University Links to research institutions 6% of Worcester, NMiTE and the University of Wolverhampton, who work closely 0% 10% 20% 30% with the Chamber as key partners. 22 23
Infrastructure How to tackle challenges and maximise opportunities: Mobile network coverage for calls and data Energy, water, transport, waste disposal networks and facilities are Your Challenges For businesses experiencing problems with mobile network coverage essential ingredients for the success of a competitive modern economy. Well-designed infrastructure investments have long-term % of businesses who identified the following for calls and data, get in touch with the Chamber and we will report economic benefits; they can raise economic growth, productivity, and cost issues as a barrier to growth these ‘not spots’ to the relevant county or district council and the With fast, reliable and secure connectivity a range Local Enterprise Partnership. land values. For the two counties specifically, the provision of suitable of modern services such as VoIP telephony and video business premises will be key to maintaining economic growth. Mobile network coverage for calls and data 21% conferencing become available to businesses. Fast Access to broadband With the arrival of the fourth industrial revolution and the Access to broadband 21% connectivity also opens the door for Cloud technology which For businesses looking to access broadband, the Gigabit Broadband digitalisation of many of the processes and services associated Voucher Scheme can be used by small businesses and the local Business premises availability 20% offers a fundamentally different way for businesses to harness communities surrounding them to contribute to the installation with business, opportunities will arise to make huge efficiency and productivity gains. Yet with opportunity comes cost and risk; Transport links via the road network 12% computer power, storage capacity and also the opportunity cost of a gigabit-capable connection. SMEs can claim up to £2,500 businesses will need digital infrastructure to meet more intense to reduce IT expenditure. against the cost of connection either individually or as part of a group Improve rail network 6% demands, and quickly, if they are to reap the rewards of technological project. Residents can benefit from the scheme with a voucher worth 0% 10% 20% 30% Connectivity remains a major concern for businesses in £500 (plus VAT) as part of a group project. advancements. As more information is stored digitally and as processes become more dependent on this infrastructure, the the region, however the good news is there are more Premises in the harder-to-reach places in the UK may be eligible for protection of this data will be paramount. options available to businesses. Those still suffering with additional funding through the ‘Broadband for Rural Communities’ slow broadband should look to invest in dedicated internet fund. Rural premises with broadband speeds of less than 100Mbps can use vouchers worth up to £3,500 for each SME to support the Our Policy Commitment: access, such as a leased line that uses Ethernet technology. cost of installing new gigabit-capable connections. Contact your A leased line enables a business to get around the limitations account manager at the Chamber for more information and eligibility. • Nationally: To support via the British Chambers of Commerce improvements to large transport infrastructure including HS2, of broadband and because the connection isn’t shared it’s Northern Powerhouse Rail and additional capacity at Heathrow. capable of reaching much faster, guaranteed speeds that Business premises availability won’t slow down during peak periods. To find out about game changer sites and available premises visit • Regionally: To support Midlands Connect strategies the Worcestershire Local Enterprise Partnership website at www. by supporting the infrastructure research and wlep.co.uk/ or the Marches Local Enterprise Partnership at www. recommendations made to the region. Richard Lane marcheslep.org.uk. • Locally: To support the councils to deliver Managing Director, local infrastructure projects. EBC Group Improving transport links via the road network and rail network Sign up to our Policy newsletter to find out about open consultations and opportunities to have your say on improving transport links Last year the National via the road and rail network. As partners of the transport branch of Midlands Engine, known as Midlands Connect, we are keen to Chamber network successfully: ensure your views on the road and rail network are used during Secured a Shared Rural Network which will transform consultations for new projects. signal coverage across the country. 24 25
HEREFORDSHIRE We are an independent, family- Herefordshire is well known for its traditional business sectors of BUSINESS owned cidermaker, located agriculture, public administration, and manufacturing, but there is in Herefordshire. In 2020 we also increasing growth in engineering and technology-based celebrate our 140th birthday! companies, such as ourselves, producing satellite communications equipment at our headquarters in Madley. Over the many years we have ENVIRONMENT developed strong relationships Herefordshire is a dynamic, vibrant and growing county; with areas with our growers and still source of outstanding natural beauty which provides a great place to live all our fruit from a 50-mile radius and work, not only attracting tourists but potential candidates. of the cider mill. It’s something Recruiting the right people can often be a challenge. Therefore, that we’re incredibly proud of increasing the level of skills in the workforce and the quality of our cider is a Working with both the public and private sectors, the Chamber has a unique insight is fundamental to economic long-term growth within the county. Which testament to the care that goes into the local business environment. Commenting on the current business landscape, is why we provide regular training and development for our staff, with into producing the very best. some of our key partners have summarised the economic position of Herefordshire. Herefordshire Council is committed to providing the opportunities to progress internally. Looking ahead in the drinks conditions for economic growth. Investing in the future of Hereford at NMiTE (New Model industry is key for us; it evolves at In 2019 the Council led innovative new projects including the in Technology and Engineering), which ETL is a founder great speed, more so in the last Hereford Centre for Cyber Security and the Shell Store business sponsor of, will also provide businesses like ours with 10 years than ever before. So, we incubation centre, which will create genuine economic assets to support graduate talent moving forwards. constantly review our approach -including how we farm, harvest, existing business clusters, open up new opportunities and generate higher We are extremely proud of our produce & sell to the trade. We’re paid jobs in the county. Both of these developments feature business–focussed heritage as a rural company achieving global The Marches Local Enterprise Partnership is dedicated to helping make our region the best place passionate about how we do partners who will be key to their success. success. We have aggressive growth plans over in the country to live, work and do business. business and how we can be Skills are central to the county’s economic development. In 2020, we will see the next decade, and we hope that will further All our communities benefit from a thriving business sector which is why our Marches Growth more sustainable. Our ambition is progress of the Council acquired college road campus (formerly the National College help the local economy. Hub is committed to helping businesses, launch, prosper and grow, creating the jobs and skills on to be here in another 140 years! for the Blind), as the long-term base for Hereford College of Art and the new engineering Ian Hilditch which future success depends. It’s great to be a part of based university NMiTE – launching in 2020. The hundreds of skilled graduates emerging Managing Director, Herefordshire’s premium food from these two higher education organisations, add greatly to the attraction of ETL Systems We will complete work this year on two of Hereford Enterprise Zone’s most significant Herefordshire for business investment. developments – the nationally-important £9million Cyber Quarter – Midlands Centre for Cyber and drink sector and I think the Security and the £7.3million redevelopment of the historic Shell Store site at Skylon Park, county will become even more Later in 2020, we will see the opening of the council-led student accommodation in underlining our commitment to business growth and innovation. widely recognised as a food Hereford city – providing high standards of accommodation for its higher education students. destination. We welcome the new Along with the Hereford and Ludlow FE college, Herefordshire offers the skills needed by We have provided £5.6m of funding for the latest developments at Hereford’s proposed new business this will generate for all. business in the years ahead. engineering university, NMiTE, and placed sustainability and the green agenda firmly at the top of our priorities with the launch of our new Energy Strategy. This will help create 1,000 new jobs in Helen Thomas Skylon Park, Hereford’s economic enterprise zone, goes from strength to strength, and 2020 the low carbon and renewable energy sector by 2030 and drive down carbon emissions. Managing Director, Westons Cider will see new businesses entering the park, now one of the most successful in the country. Gill Hamer It is an exciting time for Hereford and Herefordshire, and the decade ahead looks Director, Marches Local Enterprise Partnership set to be a tremendous one for economic development. Alistair Neill Chief Executive, Herefordshire Council 26 27
HEREFORDSHIRE The Hereford Enterprise Zone consists of 110 acres of Due for completion in Spring 2020, Ross Enterprise Park is a 15-hectare site that will BUSINESS employment land at provide up to 29,400 the £7m+ square metres of new Rotherwas, Hereford. refurbishment 38 commercial floorspace of the Shell and 1,000 new jobs STATISTICS Store will when completed. The create a 2,000 site can accommodate square metre a range of businesses The £9m Midlands companies Defence business including those from Centre for Cyber currently & Security incubation the Agri-tech and Food Security at Skylon operate there £9m Park, due for completion in from four main sectors: and innovation centre. sector, to Advanced Manufacturing and Summer 2020, is Advanced Technology sectors. set to bring in 190 Manufacturing 90% of businesses in new jobs. & Engineering Herefordshire employ less than 10 people. Food & Drink New Model in Technology and Production Engineering (NMiTE) is aiming to address the shortage of skilled graduate engineers in the region. Largest growth sectors in Herefordshire... It seeks to broaden participation, Environmental Construction Business and Sustainable especially for women, and will Technologies Professional Technologies deliver life-long learning including Services apprenticeships, CPD and postgraduate programmes. 28 29
WORCESTERSHIRE Worcestershire has one of the fastest The stability brought on by the election result in BUSINESS growing economies in the country. December, together with a move into the transition We are working with our partners phase of Brexit (and therefore confirmation in the district councils, the Local that we are to leave the EU), has resulted in Enterprise Partnership and in the increased confidence in the marketplace, albeit Chamber of Commerce to promote tempered with some nervousness surrounding ENVIRONMENT a One Worcestershire approach to the impending trade negotiations and how these showcasing the county as an excellent could impact the economy. place to live, visit, work and invest. The demand for both Retailers will be looking forward to the The County Council is delivering permanent and temporary staff implementation of the new Business Rates in record investment into continues to grow, albeit at a subdued rate, April 2021 following the revaluation in April 2019. Worcestershire’s infrastructure. driving significant pay pressures locally and It is expected that rateable values for high street Working with both the public and private sectors, the Chamber has a unique insight into the local The county’s first new railway across the UK. This sustained growth in vacancies, retail will fall, allied with an expected reduction in business environment. Commenting on the current business landscape, some of our key partners station in 100 years is opening at allied with ongoing issues surrounding the availability the multiplier. Occupiers of warehouse property have summarised the economic position of Worcestershire. Worcestershire Parkway. of candidates, means that businesses still face significant are likely to be less fortunate however, as their challenges when looking to recruit. This is most pertinent assessments are expected to rise in line with The successful Worcester Six within those industry sectors that require specific skills such market rents. Moving forward, rating revaluations Business Park, just off Junction 6 of as IT and Engineering. Whilst low candidate availability in are due to take place every 3 years, which is the M5 motorway is home to global recent years has often been attributed to the “skills shortage”, positive in that it ensures assessments should be companies including Cornelius We want to create a connected, Improving our physical and We have exciting plans to we shouldn’t ignore the impact that the lingering uncertainty more accurately aligned with the market. Although Drinks, who are the world’s leading creative, dynamic economy that digital connectivity, making new strengthen the County’s around Brexit and Government has had in tightening the labour arguably this remains too slow a response and a supplier of beverage dispensing and works for everyone and is at the employment sites like Worcester entrepreneurialism and business market. In much the same way that a business will resist investing move to self-assessment could reduce the delay. cooling equipment; Kimal, a leading forefront of the drive to improve Six, Redditch Gateway and support services under the manufacturer and supplier of products in a new piece of machinery or new offices, this uncertainty We continue to see exciting new developments the productivity of the UK. Malvern Hills Science Park, we’re banner of Worcestershire for the healthcare sector and Material also impacts candidate movement, with many wishing to stay emerging in the region and, in particular, sites such modernising the county as a Business Central, helping to Solutions a 3D printing company that put until they feel more confident and comfortable about as Nunnery Park, Sixways Park and Worcester 6 all WLEP are committed to levelling productive location that nurture and grow the businesses is part of the Siemens Group. a potential career move and future job security – it’s most of which have delivered speculative development up our local communities by attracts high quality businesses. in the County, whilst establishing certainly “better the devil you know”. There are reasons to in response to market demand. More is needed tackling social inclusion and Worcestershire is now recognised as To ensure the supply of a BetaDen, Worcestershire’s be optimistic; since the beginning of 2020, there has been however, as we are pleased to report a very championing clean growth. one of the best places in the UK to pool of appropriately skilled technology accelerator a surge in new requirements as the General Election result healthy volume of demand for, industrial and We are now seeking further start up a new business and is at the candidates, we are championing programme. brought an element of stability. It still remains to be seen warehouse space in and around our main centres. investment to deliver our vision forefront of technological innovation, the ‘Creating your future what the long-term implications of Brexit will be. The All new development needs to be supported by for Worcestershire 2040. Gary Woodman leading the way with our 5G testbed. workforce’ campaign to address aforementioned challenges in the labour market appropriate infrastructure and, as such, thought Worcestershire LEP is working CEO, Worcestershire Local This county has so much to offer to the national skills shortage at a regarding demand outstripping supply will take needs to be given to the supply of adequate together with the Chamber Enterprise Partnership those who wish to set up and grow a local level. Worcestershire LEP is some time to resolve. transport links, power and data. and partners to tackle barriers business. also leading on the development to growth and strengthen Ben Mannion Rob Champion of 5G technologies that could Paul Robinson the county’s identity as an Director, Hewett Recruitment Partner, Fisher German LLP boost productivity substantially. Chief Executive, Worcestershire exceptional place to live, work and invest. County Council 30 31
WORCESTERSHIRE 5G The UK’s first live 5G factory trials began at the Worcestershire BUSINESS Testbed in February 2019 paving the way for Industry 4.0. STATISTICS £2m GrowAgri Worcestershire initiative launched in In August 2019, November 2019 to Worcestershire’s first The Redditch Gateway help Worcestershire dedicated technology development, due to 90% enterprises diversify accelerator, BetaDen, take place in eight Worcestershire Parkway into new agri-tech welcomed a second phases up to 2025, is set is the county’s first new markets. The first Heart of Worcester cohort of businesses to deliver up to 2,300 of businesses in train station for 100 years programme of College launched the to be coached and jobs on a 78-acre site. Worcestershire and is set to improve links events started in Duckworth Centre of mentored through a employ less to London, South Wales January 2020. Engineering in October 9-month programme. than 10 people. and the South West. 2019. The 15,000 square ft Worcester Six site has been developed to Business Park will support increased demand provide 1.5m square from employers to tackle ft of employment 62% of the fastest growing Manufacturing & Precision Retail, Wholesale a shortage of engineering skills in the area. The Kiln opened in August 2019 as the first coworking space in Worcester where space on a 72 hectare site when fully developed. 50 businesses in Engineering & Leisure. entrepreneurs and lone 5 businesses were Worcestershire are workers can share ideas already using the from two sectors: and network. space at the start of 2020. 32 33
CHAMBER POLICY CONTACTS Cassie Bray Poppy Bramford Lisa Titshall Director of Policy & Public Policy, Research Business Affairs Manager & Public Affairs Engagement Executive UPCOMING RESEARCH AND REPORTS Quarter 2 Economic Research Monday 18 May – Monday 8 June 2020 Report: July 2020 (subject to change) UPCOMING Salary & Benefits 2020/21 Research Monday 22 June – Friday 14 August 2020 POLICY EVENTS Report: November 2020 (subject to change) Annual Bank of England Breakfast Quarter 3 Economic Research Thursday 1 October 2020 Monday 26 August – Monday 16 September 2020 Contact policy@hwchamber.co.uk Our accreditations and commitments Report: October 2020 (subject to change) to secure your place. Quarter 4 Economic Research Monday 2 November – Monday 23 November 2020 Report: January 2021 (subject to change) 34
WORCESTER OFFICE Severn House Prescott Drive Warndon Business Park Worcester WR4 9NE 01905 673 600 HEREFORD OFFICE Skylon Court Coldnose Road Rotherwas Hereford HR2 6JS 01432 803 236 policy@hwchamber.co.uk www.hwchamber.co.uk @hw_chamber Herefordshire & Worcestershire Chamber of Commerce Herefordshire & Worcestershire Chamber of Commerce. Produced by: Poppy Bramford, Policy & Public Affairs Manager, and Lisa Titshall, Research, Policy & Public Affairs Executive. Copyright 2020. E&O.
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