Caution optimism for the year ahead - president

As we head into the second month of the year, it is clear, that although the economy saw a somewhat unexpected boost at the end of the year, local businesses are still facing huge cost pressures as they battle with soaring energy costs, supply chain disruption and ongoing recruitment challenges, writes Shaun Gray.

It is also incredibly sad to see strikes causing considerable disruption to healthcare and travel. I hope that the government, unions and people can find a way to reach resolution for all parties as soon as possible.

Whilst things continue to be tough, the latest performance snapshot across the Greater Birmingham Chambers of Commerce region, including Burton upon Trent and district is that there is an underlying sense of cautious optimism as we enter 2023.

I saw this optimism recently when I visited two local businesses with Greater Birmingham Chambers of Commerce CEO, Henrietta Brealey and met up with Kate Kniveton, MP to discuss how the Chamber could work together with government to promote businesses across our region.

Pictured from left to right: GBCC CEO Henrietta Brealey, Burton MP Kate Kniverton, Burton Chamber president and managing director of Ginho Group Europe Shaun Gray, head of Burton and District Chamber Richard Brooks

Hardy Signs, a well-known signage business based in Burton celebrates 30 years in 2023 and provides professional traditional and digital signage across the UK. It was also great to take a tour of Willshee 's Waste and Recycling 's new state of the art facilities in Swadlincote which are helping businesses from across the Midlands to achieve zero waste to landfill.

Despite the impact of the war in Ukraine, unprecedented cost pressures and ongoing recruitment challenges businesses across the region are demonstrating resilience- with many predicting an upturn in profits during 2023. There is little doubt that 2023 will retain some of the challenging economic headwinds for the regional business base that typified the preceding year.

According to the Chambers ' Quarterly Business report for Q4, in total, 54 per cent of firms expect their turnover to improve over the next year (an increase of two per cent from Q3), while fewer are forecasting a fall in profitability (25 per cent down from 31 per cent in the previous quarter). More than half (54 per cent) also expect their profits to rise in the same period (up from 52 per cent in Q3). Both of these statistics are really heartening to see.

While both services and manufacturing firms are still struggling to recruit staff, 30 per cent of businesses across the two sectors added to their head count during Q4 - up from 24 per cent in the previous quarter.

Recognising that attracting and keeping the right talent is critical to stabilising businesses during difficult times, the Chambers of Commerce is hosting a series of events between March and May focussed on Growth Through People.

Free to attend online or in person, the sessions will give advice and guidance on the changing nature of work during the current economic climate. Advice can also be gained from peers on making the most of your workforce and improving employee engagement.

Looking ahead to the next three months, 33 per cent of businesses expect to add to their head count (up from 31 per cent in Q3).

However, both services and manufacturing are facing further cost pressures, with many businesses feeling underwhelmed by the Government 's package for energy support beyond April. Fifty-eight per cent of businesses predict their prices will go up (55 per cent in the previous quarter) - citing labour costs (26 per cent) and fuel prices (17 per cent) as the main reasons.

Investing in people and communities is something I am particularly passionate about as a Patron for Burton & South Derbyshire College. It was therefore fantastic to see Josh Cooke and Brandon Shirley, two networking and cyber security students scoop gold medals in the national final of the Cyber Security WorldSkills competition.

Josh Cooke and Brandon Shirley

The College is also set to launch a Cyber Security Lab with Stronger Towns funding that will include dedicated forensics and biometrics labs that are a natural addition to existing networking and software development.

The Chamber also has an ever-growing network for young professionals and the leaders of tomorrow called Future Faces. We are proud that on 16 February, at The Winery, in Burton upon Trent, we are hosting the first gathering of the year. It 's a great environment for young people to network and develop.

We were delighted to recently welcome Malone Group, On Point Logistics, EasyApps and Sky Recruitment as new members, joining over 100 member companies across Burton upon Trent and Uttoxeter and 3000 member companies across the broader region.

If you would like more information on Burton & District Chamber of Commerce or Future Faces, or want to come along to one of our regular networking events, please feel free to contact me at shaun.gray@ginho-group.com or Richard Brooks on r.brooks@birmingham-Chambers.com

Shaun Gray is the president of Burton & District Chamber of Commerce and European Managing Director of Burton-based Ginho Group

The column first appeared on the Burton Mail on 31 January.