Firms set to scale back as staff shortages and supply chain problems mount
More than a third of East Anglia businesses will have to temporarily reduce products or services to manage staff shortages and as stock and supply chain problems put pressure on firms, according to a survey. In a report Rethinking the Economy from BDO, 39 per cent of firms surveyed said that unexpected delays from domestic suppliers were significantly affecting their ability to operate at normal levels. The same share cited low stock levels and more than a quarter blamed staff shortages. A lack of overseas workers, exacerbated by the pandemic and Brexit, was seen as one of the biggest issues when recruiting and 39 per cent of mid-sized businesses pointed to a lack of available talent in the region. All respondents intended to reduce product lines or services to help manage staff shortages although many businesses expect the reduction to be temporary. Many firms also plan changes to make themselves more attractive to potential candidates. East Anglia companies are also optimistic about the rate of recovery, with nearly a third stating that it will take less than 12 months for the business to return to pre-pandemic revenues. Phil Hall, partner in East Anglia, said: “Much has been made of the desperate need for HGV drivers and the domino effect this is having downstream throughout the supply chain. However, the issue of staff shortages is not unique to the logistics sector. Many industries across the region are struggling to meet recruitment demands at the moment, with little sign of the problem abating in the short-term."
Confidence dips but firms planning to hire more staff
Business confidence in the East fell in September as firms’ views on their own prospects took a dip but optimism on the overall economic outlook improved and many more companies are planning to hire staff, according to a Lloyds Bank Commercial Banking survey. The bank’s business barometer - taken before the recent fuel disruption - showed confidence amongst firms in the region fell 9 points to 30 per cent as firms’ faith in the own prospects slumped by 23 points at 18 per cent. But firms’ optimism in the economy shot up seven points to 43 per cent. The net balance of firms in the region planning to increase staff levels over the next year jumped to a new high for the year, up eight points to 27 per cent. Overall UK business confidence rose 10 points in September to 46 per cent, with all regions and nations reporting double-digit confidence levels. Dave Atkinson, regional director for the East of England at Lloyds Bank Commercial Banking, said: “Despite a slight downturn in early September, business confidence across the region remains high and well above the year-to-date average as firms continue to press on with their growth plans following a healthy summer trading period. While there are clear challenges ahead amid the ongoing supply chain and labour shortages, it’s encouraging to see businesses are making plans to create new jobs, something that will ultimately help drive the region’s economic recovery in the long term.”
Separately, the vast majority of Suffolk businesses reported a very strong third quarter with most indices measured by Suffolk Chamber of Commerce’s quarterly economic survey in positive territory. Manufacturers reported some of their best figures since the pandemic began, with strong results in domestic sales (up by 55 percentage points on the previous quarter), domestic orders (up by 43 points), export sales (up 26 points) and export orders (up 11 points). Paul Simon, head of policy & communications at Suffolk Chamber, said: “In many respects, these figures are really encouraging - demonstrating that Suffolk’s businesses are accelerating out of the Covid 19 pandemic slump faster than many of us expected earlier in the year. However, the intensifying impact of recruitment difficulties and the looming challenges of systemic inflation threatens to choke this recovery, unless political and economic leaders intervene.”
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New managing partner at accountants firm
Chartered accountants Lovewell Blake has appointed Kevin Bunting, a tax partner based at the firm’s Great Yarmouth office who joined in 1999, as its new managing partner. He replaces Colin Fish, who is stepping down after six years in the role. Kevin Bunting (photo, left) said:“We have ambitions for further growth as we strengthen our position as one of the most dynamic accountancy firms in the region, both in Norfolk, and also as we grow our presence in Suffolk and Cambridgeshire. My role will be to make sure that Lovewell Blake is in a strong position to meet both current and future challenges. I am looking forward to leading the firm, along with senior partner Mark Proctor (right), into an exciting future.” Colin Fish will continue as a partner in the firm, specialising in providing tax advice to entrepreneurial businesses and their owners.
Property firm opens new branch in Felixstowe
Independent property firm Fenn Wright has opened the doors to a new branch in Felixstowe, the company’s eleventh office. The new branch is mainly focused on residential sales and lettings and adds to Fenn Wright’s growing network of branches throughout Essex and Suffolk. Managing partner Joseph Hall said: “We are delighted to have opened this new sales and lettings branch in Felixstowe after a challenging 18 months and I am proud of our team for making it happen.The office is in a great location in this thriving town and we have already received positive feedback and a warm welcome from the local community”. Demand for properties is high in Felixstowe and the town is seeing a surge in popularity after a programme of investment and regeneration in recent years. In 2017, the pier reopened following a £3 million makeover and more recently, plans were approved for a new £1 million beach hut village and activity park. Rightmove figures show the average house price in Felixstowe is £293,779, compared to £619,695 in Aldeburgh and £668,848 in Southwold.
Cambridge start up raises funds for fruitful new tech
Outfield, a Cambridge start up that helps fruit growers become more productive and efficient using drone technology and artificial intelligence has closed its first funding round. Turquoise, a UK merchant bank specialising in energy, environment and efficiency, has led the investment, its 11th deal for the Low Carbon Innovation Fund 2. The investment is part of a £750k round that also includes Cambridge Agritech, Deeptech Labs and Amadeus. Outfield provides an orchard management and yield estimation system for high value fruit crops like apples, pears and plums. Axel de Mégille, director at Turquoise, said: “Outfield technology will enable growers to improve yields on their production as well as decrease CO2 emissions associated with the use of chemical fertilisers. We were impressed by what the Outfield team has built so far and are proud to be part of the next step of their journey”. The funding is being used to expand Outfield’s global reach and extract more insights from rich data which their growers are gathering.
Full-fibre broadband networks go live in south Cambs villages
East Anglia-based full-fibre broadband provider County Broadband says its first three village networks in south Cambridgeshire have gone live. The 18-month infrastructure projects, funded by a private investment from Aviva Investors to build fibre-to-the-premises networks, have been completed in Fowlmere, Newton and Thriplow. The boost to Cambridgeshire’s digital economy means around 3,000 premises will have access to gigabit speeds and greater reliability. In all, County Broadband has earmarked 36 villages in its south Cambridgeshire rollout amid strong demand. James Salmon, director of sales and new territories at County Broadband, said: “We have an exciting rollout in rural south Cambridgeshire and demand for future-ready full-fibre broadband has never been higher. Thousands of residents, many of whom are now remote working, and businesses of all shapes and sizes will benefit from lightning-fast gigabit speeds and bullet-proof reliability thanks to our significant investment in the region’s infrastructure and future prosperity.”
Chartered accountants firm rebrands and ‘updates image’
One of East Anglia’s oldest independent firms of chartered accountants and business advisers has been renamed Whitings LLP. On October 1 the names Whiting & Partners and Whiting & Partners Ltd disappeared after more than 93 years. Chairman James Cater said that the firm, like so many other businesses in these challenging times, is striving for a ‘new normal’ and the opportunity has been taken to rebrand and update the firm’s image. “Our commitment to our clients across East Anglia, other parts of this country and further afield into wider Europe will not be changing.” The firm has 160 staff including twelve partners and six associates and has ten offices across Cambridgeshire, Suffolk and Norfolk.
Conference and meetings clients ‘welcomed back’ at reception
More than 30 people attended a ‘Welcome Back’ drinks reception for clients and venue representatives arranged by the conference and meetings bureau Meet Cambridge to mark the gradual return to live events. It was held in the gardens of the Crausaz Wordsworth Building at Robinson College, chosen for its low carbon footprint, reflecting the use of local and seasonal ingredients. Judith Sloane, head of Meet Cambridge, said: “It was wonderful to finally be able to meet up and to thank clients and venue representatives in person, for all their support, after so many months of seeing them via Zoom and Teams. There was a real buzz at the event; everyone was very enthusiastic at being able to start welcoming conferences and meetings once again.”
Photo (l-r): Judith Sloane, head of Meet Cambridge; Anne Blyth, The Møller Institute; Irene Garrote, University Arms; and Lisa Doran, The Fellows House.