The time has come for “actions, not words” from politicians, says East Midlands Chamber – as a new study shows confidence is nosediving among businesses. This week, the chamber of commerce for Derbyshire, Nottinghamshire and Leicestershire will publish the results of its Quarterly Economic Survey (QES), which is delivered in partnership with the University of Leicester School of Business and gauges the health of the region’s economy, for the third quarter of 2023. Data will show a steep fall in optimism among the region’s business community for an improvement in turnover and profitability amid rising cost pressures for energy, people, raw materials and fuel. MPs return to Parliament from tomorrow (11 October) after party conference season, which followed Parliamentary recesses over the summer and early autumn for the Conservative leadership election and period of mourning following Queen Elizabeth II’s death. Chris Hobson, director of policy and external affairs at East Midlands Chamber, said: “The on-off pauses in parliamentary activity – for reasons fully understood – over the past few months have led to a bottleneck in decision-making from the top of Government. “At the same time, a cost-of-doing-business crisis has tightened its grip on firms, which are under huge pressure to get through a difficult winter and beyond. Businesses are telling us that alongside the increased costs they face, cashflow is worsening and demand for their products and services is now dampening for the first time since pandemic restrictions were removed. “We have heard lots of rhetoric from our MPs during a summer characterised by internal politics but as we enter the final quarter of the year, the vacuum of policy decisions must be replaced with actions, not words. “This will help businesses to get on with doing what they do best – creating jobs, wealth and opportunities, and helping the economy get out of the difficulties it’s currently in.” Mini-budget measures are a good start – but market uncertainty a concern Some of the announcements in Chancellor Kwasi Kwarteng’s mini-budget aimed at growth and putting money back in the pockets of companies at a time they most need it are welcomed, said Chris. But these measures – alongside a commitment to streamline planning processes, develop infrastructure and incentivise meaningful business investment – have yet to be pushed through. “If we are to truly get the economy moving again, as the Government says it wants to do, it needs to stop the log-jam of policy ideas and turn them into legislation to give businesses the confidence to invest,” Chris added. Following recent turmoil with sterling and in bond markets, he called for “clear reassurance about its plans to ensure that as a country, we are taking a responsible approach to managing our finances and aren’t viewed as a risk by external investors.” Chris added: “Further detail on the costings of recent proposals, along with anticipated growth returns and timescales for this, is now needed. “The current market uncertainty damages consumer confidence and doesn’t support those that are looking to invest in their businesses. As such, the current proposal from Government of giving further details and costings towards the end of November feels too far away for businesses to wait.”

Business output, optimism and employment all fell in September as increased uncertainty amid mounting inflation takes its toll on businesses across the UK, according to the latest Business Trends report from accountancy and business advisory firm, BDO. The latest numbers mark the first time all four of BDO’s Business Trends indices have fallen together since the first national lockdown in April 2020. BDO’s Output Index fell for the second consecutive month to 94.30, its lowest reading since February 2021 when the UK’s output was curtailed by the third national lockdown. The index now sits below the 95-point mark, indicating a move into contractionary territory for UK output. Output has been hit with shocks from both the demand and supply sides as high input prices increase costs for businesses and the cost-of-living crisis weakens consumer spending power. This has been reflected in the manufacturing and services output subcomponents which both recorded negative readings simultaneously for the first time since the lockdown in February 2021. This slump in output coupled with growing economic headwinds have driven the sixth consecutive monthly decline in business optimism. BDO’s Optimism Index saw a significant fall of 4.48 points to 96.32 in September with further decreases expected over the coming months as the impact of a recession sets in. Optimism is lowest amongst businesses in the services sector as firms grapple with the cost-of-living crisis curtailing discretionary spending, impacting the retail and hospitality subsectors in particular. Optimism across this sub-component now stands just above the 95-point contraction mark at 95.62. As a result, businesses are exercising caution and slowing their employee headcount growth in the face of these hardships. This signalled the end of a 10-month positive growth streak for BDO’s Employment Index which declined for the first time since October 2021. The index fell 1.14 points in September to 114.19 as hiring intentions reached their weakest level since Q3 2021. BDO’s Inflation Index also saw a marginal decline of 0.05 points in September but the index remains high at 119.00 points. This decline was driven by a drop in input inflation caused by falling commodity prices as global markets adjusted to a ‘new normal’ of weaker energy supplies. This outweighed the pressures from the depreciating pound towards the end of the month following the reactions to the government’s fiscal announcement. Kyla Bellingall, head of the Midlands at BDO LLP, said: “A fall across output, optimism and employment is a stark warning sign for the economy, and it’s likely that there is further upheaval ahead. “With energy prices expected to accelerate inflation towards the end of this year, and unemployment rates set to peak in mid-2023, we’re only just starting to see the recessionary impacts set in. “Clearly businesses are in a bind. They’re already facing soaring costs and with a great deal of uncertainty ahead, hiring intentions are now taking a hit too. The past few years have shown the resilience of companies in the UK, but with increasing political uncertainty they need reassurance that they will receive the right support across the next few months and longer-term.”

With businesses signing up in droves to the East Midlands Expo, register now for the long-established event! A well targeted exhibition and networking opportunity, aimed at the construction, property, business, investment, finance, professional services and related B2B markets, the crowd will descend on the East Midlands Conference Centre, Nottingham on Monday 14 November 2022 for the free to attend expo. It has everything you require for a great day of business generation, with the chance to meet more potential clients in one amazing cost effective day, than it would take months out on the road. The day, for which Business Link is a proud partner, will begin with exhibitor breakfast networking, with the exhibition opening to attendees at 9am. A seminar will take place between 10:45am and noon with BSP Consulting’s directors Mark Rayers and Tony Goddard lined up to present ‘Sustainability and how engineering plays its part’. Not to be missed, a special networking lunch (for which tickets can be purchased here) will then take place between 12:15pm and 2:15pm, and the exhibition will close at 3:30pm.

For more information on exhibiting at the event click here.

To register to attend the event for free click here.

To secure tickets for the networking lunch click here.

From property agents to developers, architects, contractors, investors, PR firms, and more, see the list of current exhibitors here.

For a long time, customers have had to visit manufacturing plants in person to place orders for the production of various items. Products also had to pass through several intermediaries before reaching the consumer. But technology has made things more manageable, enabling manufacturers and consumers to interact seamlessly through the internet. Individual customers and businesses can now request manufacturing services and have the products shipped to their location, without ever setting foot on the manufacturer’s yard. A report from Statista showed that the manufacturing industry amounted £188.1 billion in e-commerce sales in the year 2019. It’s the second largest sector in terms of e-commerce sales value, only slightly trailing behind the wholesale industry. This trend will likely hold in the future as more manufacturers are shifting to a customer-centric approach. There must be valid reasons why both individual consumers and businesses of all sizes are turning to online platforms in such huge numbers. Here are some of them: Convenience Customers usually prioritise satisfaction when ordering manufacturing services, and many online manufacturers have proven that they can meet this expectation. For instance, if you’re looking for a CNC manufacturing service, all you need to do is upload your 3D model and specify all the properties you want—such as material, surface roughness, general tolerances, etc—and you’ll get a quote almost immediately. In essence, ordering manufacturing online involves just a few mouse clicks or taps on a screen. That’s far more convenient than visiting the company’s physical location. In-person visits are never guaranteed, given how frequent appointments get cancelled or rescheduled because of delays in traffic or conflicts with other commitments. On-time deliveries Competition among manufacturers in the online space drives them to strive towards premium quality products and on-time deliveries. Using a manual system might mean dealing with longer processing cycles. Moreover, travelling to and from the manufacturing plant to assess order progress is usually burdensome on the part of the customer. And if the manufacturer isn’t keeping up with their promises and hitting the milestones as agreed, customers might need to find better manufacturers to work with and start the process all over again. Accuracy Paper-based manufacturing orders are less accurate than automated online orders since placing purchase orders manually comes with the usual risk of human error. In fact, a study showed that 23% of all unplanned downtime in manufacturing is caused by human error. That’s why these archaic and ineffective systems typically lead to lower customer satisfaction rates. On the other hand, automated online manufacturing orders are more accurate and ensure better visibility throughout the whole process. Furthermore, both sides will save time on data cross-checking, manual data entry, and catalogue updates and maintenance. Market Changes And Technology In 2020, the world experienced one of the most intense recessions since World War II. The global economy shrunk by around 5.2%, which caused many workers in the manufacturing industry to lose their employment. Most global value chain firms started using advanced technologies to deal with the worker shortage, especially during the lockdown. This period is when companies discovered the importance of technology in production and customer service to keep them afloat. Manufacturers started to digitise their operations and services. Most of their workers started working remotely through a global virtual operations room. The Manufacturing & E-Commerce Benchmark Report from Sana Commerce showed that by 2021, 98% of manufacturers have started implementing or are working on an e-commerce strategy. Indeed, the manufacturing industry is undergoing a revolution. Manufacturers have been incorporating digital technologies in production and ecommerce to improve the efficiency of their operations. After all, e-commerce comes with a host of benefits—customers can now access their account details and order history immediately. They can also get status updates in real-time, any changes to their order details can be communicated and implemented nearly instantaneously. With technology making account management and product development more efficient, it’s highly unlikely for customers and manufacturers to revert to manual systems. Speed and Reliability There’s more demand from customers for manufacturers to process orders rapidly and accurately while maintaining efficient operations. With advanced manufacturing processes, robotics, and automation, manufacturers can meet this demand. Ordering online considerably reduces the product cycle time, making it an attractive choice among customers and businesses. Conclusion With modern technological advancements, the manufacturing industry hasn’t been left behind. Manufacturers have wholeheartedly embraced ecommerce, and businesses and customers can expect improved visibility and reduced costs for their orders. Online manufacturing order systems are rapidly evolving and will eventually become the new norm because they’re faster, more reliable, and more convenient than manual systems. So, if you’re still relying on the manual method, it’d be wise to try the online option to discover its immense benefits.

The latest KPMG and REC, UK Report on Jobs: Midlands survey signalled a renewed contraction in temporary billings at the end of the third quarter, and a much softer rise in permanent placements. Signs of weakness reflected slower growth in demand for staff and ongoing difficulties sourcing candidates. Supply limitations meant that pay inflation remained elevated.

The KPMG and REC, UK Report on Jobs: Midlands is compiled by S&P Global from responses to questionnaires sent to around 100 recruitment and employment consultancies in the Midlands.

Near-stagnation of permanent placements

Recruitment companies in the Midlands signalled a sharp slowdown in the pace of growth in permanent staff appointments during September. Placements were up only slightly over the course of the month, and to the least extent in the current 19-month sequence of expansion. Where an increase was recorded, panellists linked this to rising demand for staff. On the other hand, there were a number of reports that candidate shortages had limited the pace of growth. The increase in permanent placements in the Midlands was slower than the UK average. Meanwhile, the South of England was the only English region to record a drop in permanent placements.

Temp billings decline

September data pointed to a renewed contraction in temporary billings in the Midlands, thereby ending a 26-month sequence of expansion. The Midlands was the only one of the four English regions to post a reduction in temporary billings at the end of the third quarter. Anecdotal evidence suggested that the drop reflected a combination of candidate shortages and hesitancy among companies when making hiring decisions. Growth of temporary billings was recorded elsewhere, with the sharpest rise in the North.

There was a noticeable slowdown in growth of demand for staff in the Midlands during September, with vacancies for both permanent and temporary roles rising at softer rates.

Vacancies for permanent staff continued to increase sharply, but the rate of expansion eased to the weakest since February 2021 when the current sequence of growth began. Meanwhile, demand for temps rose at the slowest pace in 20 months.

Sharp fall in permanent candidate availability

Permanent candidate numbers continued to decrease at a rapid pace during September, although the rate of deterioration softened to the weakest since April 2021. According to respondents, concerns around economic conditions and the cost of living led to a reluctance among candidates to move roles. The fall in permanent staff availability in the Midlands was the softest of the English regions covered by the survey. The North posted the fastest fall.

Softer reduction in temporary candidate numbers

Although recruitment companies in the Midlands continued to report deteriorating candidate numbers for temporary roles in September, the pace of reduction eased markedly from the previous month and was the weakest for a year-and-a-half. Some respondents indicated that candidates were more keen on permanent roles at present, while others reported that Brexit had limited the supply of temps. As was the case with permanent availability, the fall in temporary candidates was most pronounced in the North. Meanwhile, the South of England saw a near-stabilisation of candidate supply.

Permanent salary inflation remains elevated

Recruitment companies in the Midlands reported a further steep rise in starting salaries awarded to permanent staff in September, with the rate of inflation little changed from that seen in the previous survey period. The increase in the Midlands was faster than the UK average. Candidate shortages was the principal factor leading to higher salaries. London posted the fastest rise in permanent salaries, just ahead of the Midlands.

Softer rise in temp wages

September data pointed to a further marked rise in wages paid to temporary staff in the Midlands, with the rate of inflation remaining above the series average. That said, the latest increase was softer than that seen in August. As was the case with permanent salaries, the key factor leading to higher temp pay was candidate shortages. The South of England recorded the fastest pace of inflation of the four English regions monitored, with the slowest increase in London.

Commenting on the latest survey results, Kate Holt, people consulting partner at KPMG UK, said: “It comes as no surprise that the overall downward trend in the jobs market, in terms of vacancies available and candidate supply, continues. Workers are choosing to stay put in current roles, rather than apply for new roles, due to the overall sense of economic uncertainty that many feel, which is reflected in the downturn in temporary billings. “Employers, even those who anticipate that the recession may be short, are taking steps now to cut back on spending, including hiring freezes. Those employers who continue to invest in their workforce, particularly upskilling, may find they weather the recession better and will be in a stronger position to benefit from the upturn as and when it comes.” Neil Carberry, Chief Executive of the REC, said: “The challenges we see in today’s data reflects the underlying shortage of labour the UK faces. With unemployment at record lows, pay continues to rise for both temporary and permanent workers starting new jobs, and activity levels across the recruitment and staffing industry remain high. While any economic slowdown this winter will affect the market, the extent of shortages mean that hiring will remain a focus for employers. “The REC has shown that failing to address these issues could cost our economy massively in the years to come. While there is much that Government can do, like reforming the failed Apprenticeship Levy, a lot of the answers lie with hiring businesses. Firms need to work with skilled recruiters on offers that will maximise the skill base we have. There has never been a more important time for business leaders to put the people stuff first.”