Justin Richardson, chief executive of Bedfordshire Chamber of Commerce.
Justin Richardson, chief executive of Bedfordshire Chamber of Commerce, assesses the mood of Bedfordshire businesses as revealed in the Chamber’s latest Quarterly Economic Survey.
Published in association with
AS THE chief executive of Bedfordshire Chamber of Commerce, I have the privilege of being in regular contact with businesses across our region, hearing first-hand about the opportunities and challenges they face.
Our recent Quarterly Economic Survey for Q3 2024 reveals insights into the current business landscape, underscoring both areas of concern and resilience within our local economy.
A challenging period for domestic sales
One of the survey’s key findings is the widespread concern about competitive pressures. Both UK and overseas markets are experiencing heightened competition, with businesses reporting this as a primary challenge impacting their sales.
Domestic sales, in particular, have faced a challenging period, with businesses noting a significant slowdown in advanced orders. Respondents highlighted that August and September were particularly quiet, reflecting the strain businesses are under to secure future orders.
Taxation is now the primary external concern
Taxation continues to weigh heavily on our members, limiting their ability to invest in growth and new opportunities. The call for a business-friendly tax regime is stronger than ever because reforms could alleviate this burden and enable businesses to thrive.
With speculation rife about the tax impact of the crucial Budget at the end of last month, businesses are clearly anxious. They understand the fiscal backdrop the Chancellor is facing and the need for the government to address public finances. However, that must not be at the expense of investment and growth.
Export market outlook shows promise
While the export market was relatively flat in Q3, there is cautious optimism for the future, with businesses reporting a more positive outlook for their forward-looking order books.
If you are a Bedfordshire-based business and seeking to export for the first time or looking at new international markets, we have a fully funded programme that could help you achieve your global ambitions. Get in touch at ukspf@chamber-business.com.
Decline in workforce and weakened recruitment prospects
The survey also highlighted a decline in workforce numbers during the period, with only 26% of respondents seeing an increase. 57% reported stable employment levels and 17% noted a decline. Furthermore, recruitment expectations for the next quarter look weak, indicating potential challenges in attracting and retaining talent in the near term.
Small but positive shift in investment intentions
Despite these hurdles, the survey noted an improvement in investment intentions, with businesses planning to increase spending on both plant and machinery and on training. Bucking the national trend of flatlining investment figures may reflect a commitment to long-term growth and a measure of resilience within the county.
Interest rates and economic uncertainty
Interest rates are another factor causing apprehension. As businesses navigate fluctuating rates, the cost of financing operations and expansions becomes increasingly unpredictable. This challenge underscores the need for sound financial planning and a robust approach to cash flow management, especially for small and medium-sized enterprises that often operate on tight margins.
Despite these challenges, our survey also highlights a resilient business community that remains committed to growth and innovation. Many businesses report stable or even increasing sales, demonstrating their adaptability and strategic focus. In particular, it is encouraging to see companies exploring new markets, investing in digital transformation and building partnerships that will strengthen their competitive edge.
- Bedfordshire Chamber of Commerce is here to help businesses not only weather current challenges but also seize opportunities that arise. By working together and staying engaged with the issues that matter most, we can help our businesses succeed in an ever-evolving landscape. Chamber-business.com
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