Chamber members views on the local economy

It is always great to gather members for a meeting because we never know what fresh topics will emerge. And our most recent get together was no exception.

We started by discussing the leaflet we have produced to highlight the businesses within our membership. There was general agreement it had been a great success and many people had commented on what a wide variety of activity there was in the Chew Valley, and other Chambers had also been complimentary, so we may have given them some ideas.

When it came to how business is going generally, there was a focus on finance, which is obviously always a key concern for any business. Government increases on things like the cost of National Insurance is now starting to bite and it remains to be seen how significant it will become in the months ahead. When you combine it with an increase in the minimum wage the overall cost of employing people is a serious issue and if a 21-year-old is now expecting to earn something in the region of £23k, they were concerned that some businesses may think twice before hiring a new person.

We heard that has had a knock-on effect in the recruitment sector, which has experienced a tough couple of years during which companies have already been intent on saving money. There was a period when the very best candidates were being fought over, but now there was a greater emphasis on retention as pressure increases to have people back in the office. We were hearing that recruits were being taken on in smaller numbers, though there continued to be a fairly high rate of turnover.

One surprising and very worrying topic raised during our discussion was the problem of businesses not being paid for work done. Sometimes it involved very large contracts but on other occasions it concerned small businesses, for which a non-payment of a bill could have catastrophic effects. It certainly put pressure on businesses to ensure they would be paid and not to over extend periods of credit. Property owners were becoming especially vigilant to ensure rents were paid on time.

On the subject of business premises, there remains a strong demand from businesses who want to operate from the Chew Valley and it seems likely more space will be required as companies and their staff look to avoid the costs and aggravations experienced when working out of the city centres.

So, all in all, there is plenty for our members to think about, but as always, I remain confident they will use their skills and experience to continue to provide goods and services for their customers, whatever the wider world throws at them.