Work together plea as confidence rises - Chamber

Business optimism is building across Greater Birmingham after record-high domestic sales and more firms stepping up recruitment plans during the first quarter of 2022, a new report reveals today, writes Dan Harrison.

And, with the last remaining Covid-19 restrictions lifted at the beginning of April, Greater Birmingham Chambers of Commerce (GBCC) has urged the business community to “work together to determine what the new 'business as usual ' looks like. ”

The Chamber 's Quarterly Business Report for Q1 revealed that, while businesses are still finding recruitment difficult, 40 per cent of those surveyed grew their workforce over the past three months.

Furthermore, 50 per cent expect their workforce to grow over the next three months.

Domestic sales remain at a record high, with 54 per cent of firms reporting an increase.

Export sales have improved for service firms (38 per cent increase) but dropped for manufacturers.

Growth in turnover remains steady, with 66 per cent of businesses confident of an improvement over the next three months - although this is slightly lower than the previous quarter.

Meanwhile, 55 per cent expect profitability to grow in Q2.

There was a drop in the number of firms reporting recruitment difficulties, although 32 per cent said they were struggling to fill professional or managerial positions and 27 per cent experienced problems in hiring for manual or technical roles.

Inflation and cost pressures were the biggest concerns among businesses in Q1.

Thirty-three per cent of firms were more concerned about inflation than in the previous quarter, while half of those surveyed reported pressure to raise prices. This was mostly due to overheads (37 per cent) and the price of raw materials (31 per cent).

Henrietta Brealey (pictured), chief executive of Greater Birmingham Chambers of Commerce, said: “With national restrictions easing and the Birmingham 2022 Commonwealth Games on the horizon, business optimism is building across Greater Birmingham.

“Domestic sales are strong, export demand has held up and confidence remains strong. With the relaxing of Covid-19 measures towards the end of February and the removal of free testing and workplace safety guidance coming into force from 1 April, now is the time for the Greater Birmingham business community to work together to determine what the new 'business as usual ' looks like.

“This is particularly clear when reviewing recruitment levels for the start of the year, with a rise in the proportion of firms looking to recruit but a drop in those experiencing recruitment difficulties.

“It is clear that a shift is happening in terms of working arrangements and expectations, and that the job market is beginning to become livelier after a period of uncertainty for employers and employees alike. ”

The Quarterly Business Report is produced by the GBCC in partnership with Birmingham City University, whose deputy vice-chancellor Professor Julian Beer said: “The survey results demonstrate the continued resilience of the Greater Birmingham economy with many businesses reporting a strong performance in the previous quarter and positive forward orders.

“It was heartening to see that business confidence also remained buoyant, with anticipated uplifts in turnover and profitability over the next 12 months.

“However, as we are all experiencing, inflationary pressures continue to grow, exacerbated most recently by the impact of the Ukraine crisis - whilst recruitment of staff at all levels remains challenging in what is an increasingly tight labour market. ”

The Q1 Quarterly Business Report will be launched at Birmingham City University on 27 April (5pm to 7pm) with an expert panel discussing investment in Greater Birmingham.