Firm plan to up investment but overseas trade apprehension remains - Chamber

The number of West Midlands firms planning to increase their investment over the next 12 months demonstrates an uplift in business confidence.

But many of the region 's businesses remain apprehensive about trading internationally, according to a new Chamber survey.

The British Chambers of Commerce survey highlights trade and investment trends in the West Midlands.

Businesses were asked about the current issues affecting their operations, investment plans and the impact of Brexit.

The results paint a mixed picture of business conditions.

While four in 10 firms are planning to increase their investment over the next year, large numbers are also reporting issues in key areas such as recruitment and buying and selling goods.

Seventy-one per cent of firms who responded to the survey are expecting an increase in the value of orders for their goods and services.

Vehicle fuels (48 per cent), steel/steel products (40 per cent), paper or cardboard, shipping containers and utilities (all 33 per cent) are among the products that have seen the highest increases in costs.

One third of businesses reported concrete plans to grow investment or training plans in the UK market, while 36 per cent had no plans to be active in the EU market and 41 per cent don 't intend to be active in the global non-EU market over the next 12 months.

Sixty-five per cent stated that they have experienced difficulties buying or selling goods and 62 per cent having issues moving people as a result of the EU-UK Trade and Cooperation Agreement.

Furthermore, 52 per cent of respondents have experienced an employee or skills shortage over the past year.

And there is apprehension from firms to trade internationally, with 37 per cent stating that nothing would encourage them to do so right now.

In terms of support that may increase comfort levels in engaging with the international market, 23 per cent felt that assistance in finding an overseas business partner or distributor would encourage them and 16 per cent would find support around business, marketing or sales plans useful.

However, more than two third (69 per cent) felt that the views of business weren 't considered by the UK Government in their decisions around trade deals.

Beth Clewes (pictured), insight and intelligence services manager for Greater Birmingham Chambers of Commerce, said: “The data is showing us that business confidence has increased for many over the past few months, evidenced by the large number of firms reporting plans to increase investment in the next 12 months.

“This is promising in terms of ensuring that businesses in our region thrive post-Brexit.

“We are also seeing that there are ways in which we can make businesses feel more supported in approaching international trade in an uncertain environment where there are goods and skills shortages and extended shipping times. Having this information is vital to ensure that businesses who would like to trade internationally have the tools to do so.

“It 's clear that many members of the business community in the West Midlands aren 't feeling heard by decision-makers at a national level.

“We would encourage local firms to share their feedback on the challenges they are facing by completing our Quarterly Business Report survey each quarter, as their views will help to shape our interactions with regional and national decision-makers. ”