The British Chambers of Commerce (BCC), in partnership with DHL, today (Friday) publishes its latest Quarterly International Trade Outlook, which shows that confidence among UK exporters remains strong.
The number of businesses reporting improved export sales increased in the first quarter of 2017. Businesses in both manufacturing and services are also more confident that their turnover and profitability would increase in the coming 12 months.
The BCC/DHL Trade Confidence Index, which measures the volume of trade documentation issued by accredited Chambers of Commerce, rose by 5.5% on the quarter – and is up 9.06% from the same quarter last year – standing at its second highest level on record.
The results show that businesses are continuing to trade despite political uncertainty, however currency fluctuations remain a concern. 52% of manufacturers and 25% of services firms say exchange rates are more of a concern to their business than three months ago.
To maintain momentum, and to help UK firms succeed beyond Brexit, the government should develop an expanded trade mission and fairs programme, help businesses build links with key trade partners and underpin deals, and expand funding for front-line assistance to exporters. Businesses will be looking for the next government to secure frictionless future trade arrangements with the EU, crucial to both importers and exporters, as well as to broker new relationships with emerging markets.
Key findings from the report:
• The BCC/DHL Trade Confidence Index, a measure of the volume of trade documentation issued nationally, rose by 5.5% on the quarter. The Index now stands at 126.55 –up 9.06% on Q1 2016 – and is the second highest level since records began in 2004
• The balance of manufacturers reporting improved export sales rose from +16% to +26%. Looking at services, the balance of firms reporting improved export sales rose from +8% to +10%
• The balance of manufacturers reporting improved export orders rose from +13 to +22 in Q4 2016, while in services it fell slightly from +6% to +5%
• Looking at expectations of turnover over the next 12 months, the balance of manufacturers confident of an increase held fairly steady, rising from +43% to +44%. In services this rose by four points from +35% to +39%
• Confidence that profitability would improve rose to +28% for services companies – up from the +21% in Q4 2016. The balance of manufacturers jumped by ten points, from +22% to +32%
Commenting on the findings, Dr Adam Marshall, BCC Director General, said:
“Confidence among exporters is strong, which is a timely reminder that businesses are doing their best to ignore the cacophony of political noise around them and focus on the success of their own operations.
“While confidence among UK exporters is high, rising costs, recruitment difficulties, and concerns around currency fluctuations could temper their growth if allowed to continue unchecked. Alleviating the burden of upfront costs and addressing the skills gap would increase productivity, investment and growth.
“For UK exporters to succeed in the long-term, the next government must deliver not only a Brexit deal which allows for frictionless trade with Europe, but also pragmatic and practical support for businesses looking to develop lasting links with new customers and markets around the world.”
Ian Wilson, CEO DHL Express UK and Ireland, said:
“Despite the many unanswered questions about what a post-Brexit Britain will look like, this latest Quarterly International Trade Outlook demonstrates that UK exporters remain optimistic about what the future holds.
“As a facilitator of international trade, we’ve seen our customers embrace the short term benefits that came with the fall in the value of the pound. However, this report demonstrates that whilst businesses are confident, they are not complacent – with currency fluctuations a lingering concern for exporters. In these uncertain times, there is an even greater imperative to expand the portfolio of markets businesses trade with to help spread the risk across multiple currencies.”
– Major infrastructure works underway across the network
– Journeys may be affected after the end of the evening peak period
– Customers advised to check dedicated webpage for info on their journey
The ScotRail Alliance is reminding customers to check before they travel as the next phase of the Scotland-wide rail upgrade programme gets under way this weekend.
From Sunday 21 May work will be carried out to improve the network in Central and Northern Scotland. On those routes affected by the work, there will be changes to journeys after the end of the evening peak period.
To help customers plan ahead, the ScotRail Alliance has summarised the key changes at different times of day between now and December on a dedicated webpage at scotrail.co.uk/improvements.
Journey times will be longer and customers can expect to see queuing systems in operation at key stations.
As well as increasing the overall reliability of the rail network, the improvement work takes the next step towards introduction of new faster, longer, greener trains for Scotland – meaning more seats and shorter journey times.
Jacqueline Taggart, ScotRail Alliance Customer Experience Director said: “No one likes having their journey changed. However, this short term disruption will lead to a more reliable, better rail network that will rank amongst the very best.
“We are going through a massive period of change on Scotland’s railway. The work that we are carrying out over the next few months will bring about a revolution in rail – with more and better trains, more services and more seats than ever before.
“However, while we transform the railway, there is inevitably going to be some impact on people’s services. We are doing everything we can to minimise this, and to keep people moving.”
New alliances open up new opportunities for Edinburgh companies
Edinburgh Chamber of Commerce has participated in one of the first network-wide overseas trade missions to China, led by a delegation of the Scottish Chambers of Commerce.
Chief Executive, Liz McAreavey joined senior representatives and business people from Aberdeen, Ayrshire, Dundee & Angus, Glasgow, and West Lothian. The mission explored new trading opportunities and links with business, education and government organisations.
As part of the programme, Scottish Chambers of Commerce (SCC) announced the official opening of a new International Trade Office in the city of Yantai. The formal opening ceremony was hosted by the Vice Mayor of Yantai city, Madame Zhang Bo, together with senior officials from Yantai Municipal Government.
As part of the event, both parties signed a Memorandum of Understanding for trade engagement and partnership, designed to achieve an effective channel for exchange of business between Scotland and Yantai.
During the trade visit, Edinburgh Chamber participated in a series of productive meetings with senior business people, highly influential politicians including Vice Governor Wang Shujian, and local government officials as well as national ‘think tanks’ bodies in Beijing, Yantai and Jinan in the Shandong Province
Chief Executive, Liz McAreavey commented: “The Chinese economy continues to grow at a faster pace than western economies and the rate of growth within new cities such as Yantai and Jinan opens up the potential for Edinburgh businesses to promote and sell its goods and services which Chinese businesses and consumers want and need. That demand, together with a more recent policy of ‘opening up’ to new trading partners and overseas alliances by the Chinese, presents a myriad of opportunities for our local businesses to capitalise on.
“The aim of our mission was to strengthen relationships and increase engagement with existing and new contacts in sectors where there are direct B2B or knowledge-sharing opportunities for Edinburgh companies. Yantai is a city of 7 million and SCC’s base in Yantai will enable us to plan a comprehensive approach to exploiting the many opportunities in Yantai and further afield for our members and non-members.”
Shandong Province represents the third largest economy in China with a population of over 97 million and a GDP in excess of 6.3 trillion yuan (£0.7 trillion). It is China’s best wine growing region accounting for over 25% of all wine production. Yantai is the biggest trading port in North China and in 2016, the city imported over $19 billion (£14.7 billion) of goods and services.
Chief Executive, Liz McAreavey also visited the city of Jinan, which is home to one of the first national high-tech business incubators and since its foundation in 2002, it has incubated more than 1,000 small and medium sized science and technology enterprises. It focuses on cultivating fast-growing sectors such as biomedicine, ecommerce, energy, environmental protection and new materials.
Key sectors for Edinburgh Chamber based companies to meet key economic needs in the Chinese target cities include: electronic information, robotics and artificial intelligence, bioscience, R &D and smart technologies, food and drink and even football management.
The accelerated growth of consumers in Shandong province also opens opportunities in consumer goods, recreation and tourism services, financial and professional services and education.
Chief Executive, SCC, Liz Cameron said: “We now have a deeper understanding of how we can achieve the best exchange for business, where the opportunities exist for Scottish organisations and how we can best pursue these.
“We have also identified a number of potential opportunities for inward investment into Scotland and will be working with Scottish Government and SDI as well as other trade organisations to explore these and leverage the momentum of change within China.
SCC intends to return to Shandong Province later this year to conclude discussions on further Memorandums of Understanding and explore new ways to foster co-operation between the two countries.
Edinburgh International Film Festival (EIFF) is delighted to announce that Francis Lee’s debut feature GOD’S OWN COUNTRY will open the 71st edition of the Festival on 21 June, 2017.
Shot entirely on location in West Yorkshire, GOD’S OWN COUNTRY is a contemporary tale of self-discovery and emotional-awakening set on the sheep farming hills of rural Northern England. Rising star Josh O’Connor (The Riot Club, The Durrells) takes on the central role of Johnny, a young man carrying the weight of his family’s sheep farm alone until the arrival of Romanian worker Gheorghe (Alec Secareanu). Supporting the central pair are acting stalwarts Ian Hart (Harry Potter and the Philosopher’s Stone, The Last Kingdom) and Gemma Jones (Spooks, Bridget Jones’s Diary), who respectively play Jack’s stroke-afflicted father Martin and formidable grandmother Deidre. Key cast will be in attendance on Opening night.
Mark Adams, EIFF Artistic Director commented: “We are thrilled to be staging the UK premiere of Francis Lee’s accomplished debut, GOD’S OWN COUNTRY. This hotly-tipped feature debut is one to watch in this incredible year for independent film and perfectly reflects the Festival’s ongoing dedication to delivering audiences the most original and artistically accomplished work in international cinema.”
Johnny Saxby (Josh O’Connor) works long hours on his family’s remote farm in the north of England. He numbs the daily frustration of his lonely existence with nightly binge-drinking at the local pub and casual sex. But when a handsome Romanian migrant worker (Alec Secareanu) arrives to take up temporary work on the family farm, Johnny suddenly finds himself having to deal with emotions he has never felt before. As they begin working closely together during lambing season, an intense relationship starts to form which could change Johnny’s life forever.
Captivating and broodingly beautiful, GOD’S OWN COUNTRY is the award-winning debut feature from writer/director Francis Lee. Bracingly open hearted, this is a thrillingly romantic story set in the heart of rural Yorkshire. Both poignant and moving, this finely crafted British film features a host of standout performances, marking it out as an absolute must see.
Yorkshire-born director Francis Lee commented: “It’s a great privilege that GOD’S OWN COUNTRY has been selected as the Opening Night film of the Edinburgh International Film Festival. After the incredible critical and audience responses to the film in both Sundance and Berlin earlier in the year, I’m thrilled to bring GOD’S OWN COUNTRY to the UK for the first time.”
Following its UK premiere at the Festival, distributor Picturehouse Entertainment will be releasing GOD’S OWN COUNTRY on Friday 1 September, 2017.
Tickets will go on sale at 10am on Wednesday 10 May through the EIFF website. For more information visit www.edfilmfest.org.uk.
The 71st edition of EIFF runs from 21 June – 2 July, 2017.
For further information, please contact: carly.cadogan@ddapr.com or 0207 932 9800
An international field of rising sales stars will converge on Edinburgh for the fourth European Sales Competition.
Students from across the Continent, and a contingent from the USA, will demonstrate their selling skills in buyer-seller business meetings as the prestigious contest comes to Britain for the first time.
Edinburgh Napier University will host more than 50 students from 20 universities in 10 different countries who are taking part in the event – part of the movement to take sales away from the spiv stereotype and put it at the heart of the higher education curriculum.
The first of the competitions – which put students’ skills under the microscope by role playing the pressures of real-life business situations – was organised in Brussels in June 2015 with the aim of addressing a lack of structured sales training and exposing participants to cross-cultural differences.
Supporters wanted to pave the way for a standardised approach to sales education across Europe and foster the creation of a pan-European Sales University Alliance.
Sponsored by cloud computing company Salesforce, the competition at Edinburgh Napier’s Craiglockhart Campus opens on May 31 with a Speed Selling Event which will see students pitching against the clock to professional sales people and getting instant feedback on their performance.
The main competition the following day involves competitors selling to buyers provided by the Royal Bank of Scotland while bracing themselves for possible interruptions and surprises. Those judged to have performed best in semi-finals held in five separate rooms will progress to an afternoon final, which will be broadcast live online and to an audience in the Lindsay Stewart Lecture Theatre.
The winners will be announced at a Gala Dinner that evening, which will also give the visitors, from as far afield as Spain, Finland and Kansas state, the chance to try their hand at ceilidh dancing.
Dr Tony Douglas, Edinburgh Napier’s Associate Professor of Strategy & Sales and Director of the European Sales Competition, said: “I first witnessed sales competition events in the USA some six years ago, and I was so excited by the concept of bringing together industry and students in the Business School environment that I added this event to my list of ‘must dos’.
“Sales by its nature can be very competitive and the European Sales Competition ticks all the right boxes by connecting the right students with the right businesses, who are looking for more efficient ways of recruiting.”
With talented sales people at the heart of most successful companies, leading business organisations have been happy to lend their support to a competition which spotlights up and coming stars.
Salesforce, Oracle, Gartner, Hudson, Eastern Western Motor Group, Textron and the Association of Professional Sales all back the event, which aims to make sales an attractive career choice.
Edinburgh Napier, home to Scotland’s first university sales division and Scotland’s representatives at the event, offers two PG degree programmes with a sales element, and an advisory group drawn from industry helps develop the teaching agenda.
The Business School last month launched its Centre for Sales and Business Development, which will become a hub for the professionalisation of sales through research and commercial activity.
The university now also offers advanced entry to its BA Sales Management course for people with relevant work experience, and has joined forces with universities in Finland, Austria and Germany to research the coaching of sales professionals.
Dr Douglas said: “With the introduction of sales programmes at Edinburgh Napier, we are now able to help students to not just learn about sales but to practise important selling skills such as questioning, listening, presentation and negotiation, using role play as part of our assessments.”
Today’s news that inflation has jumped to 2.7% has confirmed long-held expectations and highlighted growing concerns over the capacity for businesses to contain rising costs and the potential threat to consumer demand, as disposable incomes become squeezed. Liz Cameron, Chief Executive of Scottish Chambers of Commerce, said:
“Whilst part of the reason for this latest increase in inflation might be due to the timing of Easter and the consequent impact on the cost of flying, the fact remains that there are continued upward pressures on prices from a range of sources and the Bank of England last week said that it expected inflation to continue upwards to almost 3% later in the year.
“The impact on Scottish business and the Scottish economy is two-fold. Rising prices impact on businesses’ costs and their ability to invest and create jobs, whilst weakening real incomes could depress consumer spending, which has been the strongest driver of economic growth in Scotland over the past few years.
“These challenges, coupled with ongoing political uncertainty represent a risk for the Scottish economy, which our politicians must respond to. With a General Election campaign in full swing, politicians of all parties must remember that it is Scotland’s businesses that are the creators of jobs, wealth and growth in our economy, and businesses will be examining the various Parties’ plans to address this situation with keen interest.”
The ScotRail Alliance is urging customers on the Aberdeen to Inverness route to check their journey times before they travel, as train times will be altered over the bank holiday weekend.
Buses replace trains between Inverness and Keith on 27 – 29 May to allow for engineering works to take place. Customers are being encouraged to plan ahead and check their journey plans on the ScotRail app or at scotrail.co.uk.
A ScotRail Alliance spokesperson said: A ScotRail Alliance spokesperson said: “We appreciate our customers’ patience during these essential works.”
Kelburn Castle and Estate, one of the oldest family owned estates in Scotland, has secured £1m of funding from Barclays to support the expansion of its luxury camping site.
The 13th century castle and 3,500 acre estate near Fairlie in North Ayrshire has been owned by the Boyle family since 1140. The present owner, Patrick Boyle, the 10th Earl of Glasgow, opened up the castle along with its grounds and gardens to the public in 1977.
A number of new attractions were introduced over the years and, following a 400% uptake in the estate’s glamping experience, the Boyle family approached Barclays for support in restructuring borrowings and secure investment capital.
David Boyle, son of the 10th Earl of Glasgow and Commercial Manager of Kelburn Castle and Estate, commented: “This deal marks the first time our family has banked with Barclays, and I have to say that the experience and service has been unrivalled. We needed a banking partner that would take the time to understand the heritage of our business but also recognise our ambition for growth. The Barclays team showed a willingness to help from the outset and their industry knowledge made them a perfect fit for us.
“This funding will allow us to reinvest in the estate to increase visitor numbers. We plan to install an additional nine yurts in direct response to the growing demand for glamping, and we are considering adding a communal building for campers to further drive growth and transform the site into a hospitality and music festival venue.”
Kelburn Castle and Estate is one of a number of businesses to benefit from Barclay’s £500m SME loan fund, launched in 2016 to provide access to funding for businesses across all sectors with turnover up to £25m. It forms part of the bank’s commitment to create a supportive environment for business growth in Scotland.
The deal was led by Barclays Agriculture Relationship Director Scot Howie, he added: “The importance of estates diversifying their offering and developing new income streams is vital for creating long-term sustainability, whether it’s introducing renewables or opening their doors to the public to enjoy their heritage. Our experienced agriculture team has helped many landowners implement initiatives to improve business resilience and increase profitability.
“Kelburn Castle and Estate has successfully accomplished this by continually evolving its offering as a popular visitor attraction and tourist destination in line with changing consumer demands. The estate now has a strong market position in Ayrshire, and we’re proud to support the family and help them make the most of opportunities for long-term growth.”
The Bank of England is expecting three further years of above-target inflation in the UK, whilst GDP growth projections this year are down marginally this year to 1.9% but up slightly to 1.7% and 1.8% in each of the next two years.
Commenting, Liz Cameron, Chief Executive of Scottish Chambers of Commerce, said:
“There are twin challenges facing our economy at the moment in the shape of rising prices resulting from the fall in the value of sterling and weak consumer demand due to low real income growth, putting upward pressure on inflation and downward pressure on economic growth respectively. In addition, many businesses are experiencing a rise in their costs, putting upward pressure on prices and threatening their capacity to boost investment.
“We will be looking for next month’s General Election, whatever its outcome, to deliver greater clarity and stability. The next UK Government must act quickly to set out its agenda for Brexit, enhancing market confidence, and taking early action to tackle core business costs. Targeted tax reductions could play a key role here and help provide the boost that would stimulate improved levels of investment and new employment opportunities.”
Commenting on the Bank of England inflation report and interest rate decision published on ‘Super Thursday’, Suren Thiru, Head of Economics at the British Chambers of Commerce (BCC), said:
“The Bank of England’s latest projections point to little change in outlook for the UK economy, compared to their February report, with only a slight downgrade for 2017. Significantly, the central bank see inflation as a greater risk to the UK’s growth prospects in the coming months.
“In our view the Bank of England’s forecasts are still too optimistic about the UK’s near-term growth prospects. We expect that inflation will weaken economic activity by more than the central bank is currently predicting, with wage growth likely to remain persistently below price growth over the next few years. Rising input costs faced by businesses are also likely to weigh more heavily on investment intentions than the Bank of England forecasts currently imply.
“The Bank of England is likely to face a major headache over the next few years as it seeks to strike a balance between managing a period of above target inflation and supporting more subdued economic growth. Longer-term uncertainty over the impact of Brexit on the UK economy is also likely to weigh on UK monetary policy decision-making. Against this backdrop, the most likely scenario is that the MPC will opt for a prolonged period of monetary stability and keep interest rates steady over the near term.
“Is vital that the next government addresses some of the longstanding issues facing the UK economy, including the relentless increases in the up-front cost of doing business in Britain, and investing in critical infrastructure to enable businesses to continue to drive investment, create jobs and boost growth.”
