Business News

With the UK’s adoption of Black Friday now in its fourth year, more consumers than ever before are planning to shop, showing the shopping event is now solidified in the UK’s calendar.

New research from TopCashback.co.uk, the UK’s most generous cashback shopping site, reveals only 14 per cent of consumers in the west midlands are not planning to shop on Black Friday. Furthermore, of those shopping, only 18 per cent will be doing so for the first time.

Nearly half (45 per cent) of consumers in the west midlands are waiting for Black Friday sales to buy a big-ticket item they want or need. More than two-fifths (44 per cent) have been holding-off since September, 15 per cent since August, and 22 per cent have even been biding their time since April or earlier in the year.

Consumers are also planning on spending less this year than they did last year. In 2016 consumers were prepared to spend £539, and this year are expecting to spend £331, a £208 decrease. But, consumers are looking for a £66 saving and 96 per cent will be looking for additional savings such as cashback and voucher codes as they look to spend less.

Black Friday 2017 is also shaping up to be a truly online event as only one per cent of shopper’s plan to shop exclusively in-store. Instead, nearly a third (31 per cent) will go both in store and online and nearly seven in 10 (69 per cent) will only be shopping online.

Consumers in the west midlands will be stocking up on clothes (41 per cent) this Black Friday, closely followed by toys (23 per cent), beauty (21 per cent), home goods (17 per cent) and a further 17 per cent will be looking for TV’s and laptops.

Adam Bullock, UK Director of TopCashback.co.uk, said: “Black Friday was originally presented to the UK with images of people rushing around shops fighting over TV’s and electricals. But, now three years on, Black Friday is largely an online event. In fact, last year for the first time we saw more people logging-on to buy from their mobile or tablets than desktops.

“It’s not all TVs and tech either, different types of companies are keen to drive pre-Christmas profits and therefore offer major discounts. There are some great deals to be had on mobile, TV and broadband contracts as well as travel and fashion. However, consumers are keen to get better deals and are increasingly looking to cashback sites and voucher codes to save even more money. Last year we saw £39.5 million pounds being spent through TopCashback during the Black Friday period, meaning on top of the saving offered by the retailer we helped our members save £2.6 million.”

The Black Country Chamber of Commerce are delighted to announce a new partnership with the Black Country Local Enterprise Partnership (LEP) moving forward for the next year on the Quarterly Economic Survey (QES).

Black Country Chamber of Commerce members and local authority leaders were recently hosted by Andy Street at Wolverhampton University to discuss local business issues with Andrew Jones MP. Considering that time was of the essence during a busy visiting schedule for Minister Andrew Jones, the discussions were lively, passionate and positive, outlining the hunger of local authority and business leaders to resolve the issues facing the Black Country. The agenda focused on the following issues: skills, transport infrastructure, Brexit uncertainty, and digital infrastructure, as well as the reliability and cost of power.

With Chancellor Philip Hammond’s budget announcement being prepared for 22^nd November, this was a genuine opportunity for Black Country businesses to outline their key issues. Particularly, as Andrew Jones is Exchequer Secretary to the Treasury, this discussion was a fantastic way for the Black Country to voice its concerns as well as outlining its achievements ahead of such a crucial fiscal announcement.

On the issue of transport infrastructure, talks centred around Dudley, and the improved connectivity offered by the Midlands Metro extension. Present at the roundtable were intu Merry Hill and the Black Country Living Museum, two of the many businesses who would benefit from the extension of the metro link. Whilst discussing skills gaps and shortages which hamper Black Country business, it was made clear to the Minister that firms were struggling to understand, and in turn adapt to the apprenticeship levy, as well as being confused about other policy changes across the technical education landscape.

Attendees also spoke about the impact of Brexit on the Black Country. Again, it was stressed by local manufacturers that clarity was key, and the longer businesses are kept in the dark over new trade agreements and access to EU labour, the less forward-planning can be undertaken. On a positive note, around digital infrastructure, Andy Street outlined to Andrew Jones MP that the Black Country is a nationwide leader on laying digital infrastructure, having once been ranked as the lowest performing region.

Corin Crane, Chief Executive of the Black Country Chamber of Commerce, commented: “Ahead of such an important budget announcement it is great to see government commitment to Black Country businesses. It was no surprise to hear the long-standing issues continue to be priorities for businesses, including skills and poor transport infrastructure. Our local businesses are hopeful of big announcements surrounding the Midlands Metro extension and the devolution of skills budgets and the wider skills agenda.”

Andrew Lovett, Chief Executive of the Black Country Living Museum, added: “The strength of the Black Country is its ability to adapt, and the Black Country community aren’t the sort of people who look for handouts. However, we do require investment to fulfil our potential for the good of the region and the whole of the UK. Investment is a two-way transaction and we’ll all want to deliver on the faith that is put in us through the use of tax-payer’s money.”

Greater Birmingham business leaders say the Government must not lose sight of the need to rebalance the UK economy, following the Bank of England’s decision to raise interest rates to 0.5 per cent today.

The Monetary Policy Committee voted to raise the base rate for the first time since 2007. The committee also stated any further hikes will be “at a gradual pace and to a limited extent”.

Paul Faulkner, chief executive of Greater Birmingham Chambers of Commerce, said the news shouldn’t detract from the need to strengthen the foundations of the economy.

He said: “Today the Bank of England took the historic step to raise the base rate for the first time in almost a decade.

“A number of commentators have noted how the Federal Reserve took a similar approach at the tail end of last year which saw a strengthening in US economic output and hope the trend will be reflected in the UK –this remains to be seen given the stagnant wage growth the UK has suffered over recent years.

“Nevertheless, we shouldn’t lose sight of the fact that at 0.25%, the rise is incremental and largely symbolic in its application as the MPC looks to curb rising inflationary pressures.

“Also today’s news shouldn’t detract from the real issue – the need to shore up the foundations of the domestic economy.

“The upcoming Autumn Budget is the perfect stage for the Government to set out its plan on how it intends to move away from a reliance on consumer spending to fuel growth and in particular, reiterate the need to invest in infrastructure and upskilling the workforce. Not only will this help rebalance the national economy but also ensure our businesses have the platform required to thrive.

“Furthermore, local firms are increasingly concerned about the competiveness of the UK market and we will be discussing this topic and others at our latest Quarterly Business Report launch which takes place on November 7th at Birmingham City University.”

The launch of the Chamber’s Quarterly Business Report takes place at Birmingham City University’s Curzon Building on 7 November.

One of the UK’s top independent Personal Lines Insurance Brokers has moved its Head Office and main customer contact centre into the City of Wolverhampton – delivering investment and jobs.

Established in 1999 by two local entrepreneurs, Mark Woods and Richard Dornan, Premium Choice specialises in providing car and commercial vehicle insurance solutions for over 100,000 customers and are rapidly growing in the market, offering home and leisure Insurance.

They have relocated from Fort Dunlop in Birmingham to Pendeford Business Park – investing over £750,000 in the refurbishment of Pendeford House.

Around 200 people are now employed at its new Wobaston Road site near to Junction 2 of the M54, with more than 15 per cent of the staff newly recruited from the City of Wolverhampton, thanks to support from the council’s enterprise team.

Richard Dornan, Premium Choice Managing Director (Underwriting and Business Development), said: “It’s an exciting time for Premium Choice. The new offices have been completely refurbished offering us the platform to grow our business and further develop our teams. The acquisition of the new building is the result of the company’s rapid growth and continual success.”

Mark Woods, Premium Choice Managing Director (Operations), added: “We are very unique in what we do and invest heavily in training our colleagues. Pendeford Business Park is perfectly located for us to capitalise on the talent that exists within the City of Wolverhampton and surrounding areas, and further develop knowledge and skills within the Financial Services Sector.

“Our business employs around 200 people and we have a proven track record of growth over the past 17 years. We continually look for great people to assist us in our journey, we always look for people who have a passion for learning and development and want to help deliver a great customer experience.

“The support that we have received, and continue to receive from City of Wolverhampton Council has been invaluable and was a real influencing factor in our decision to relocate to Wolverhampton.”

City of Wolverhampton Council Cabinet Member for City Economy, Councillor John Reynolds, said: “This is great news for the city and shows how the area around Junction 2 has become one of our core economic hubs.

“Regeneration in the city is being driven by £3.7 billion of investment either on site or in the pipeline - making us an attractive location for businesses like Premium Choice.

“Most importantly, its relocation is providing vital job opportunities for our residents.”

Business leaders in Greater Birmingham have called on the Chancellor to use the Autumn Budget as an opportunity to boost the competitiveness of the UK economy.

Figures released today by the Office for National Statistics (ONS) revealed the UK economy grew by 0.4 per cent in the third quarter.

Gross Domestic Product (GDP) grew at a similar rate over the three months to September as it did in the previous two quarters.

The services sector remains the largest contributor to GDP growth, increasing by 0.5 per cent, while manufacturing also grew after a weak Q2.

In the expenditure measure of GDP, there was relatively strong growth in government spending and investment.

However, there was a slowdown in growth in both household spending and business investment, to 0.1 per cent and 0.0 per cent respectively.

Raj Kandola (pictured), senior policy and patronage advisor at the Chamber, said: “Although GDP output remains subdued, we shouldn’t lose sight of the fact that we are still witnessing growth in both the service and manufacturing sector; a testament to the strong foundations which underpin the national economy.

“As employment across the country continues to reach record levels, this once again points to systemic issues with productivity output amongst our workforce and the upcoming Autumn Budget is the perfect platform for the Chancellor to set out a plan for enhancing the competitiveness of the domestic economy in light of uncertainty caused by Brexit negotiations.

“Many of the trends we saw at the national level were reflected in the findings of our latest economic survey – with manufacturers in particular enjoying a fruitful three months, no doubt helped by the lower value of the pound.

“We will be discussing this topic and others that are impacting local businesses at our Q3 Quarterly Business Report Launch event which takes place on 7 November at Birmingham City University.”

If you think you know how Millennials think, you can think again, as a session at WTM London 2017, the leading global event for the travel industry, will unveil some surprising BBC research about the generation.

The Millennial age group is usually defined as those born in the early 1980s to late 1990s and their buying habits are of great interest to anyone selling travel.

BBC World News carried out the new research, Reaching Affluent Millennials and this will be detailed during the session. The study sought to find what was distinctive about this generation and its relationships with brands, media and advertising. The results were surprising.

As Ros Atkins, presenter of Outside Source on BBC World News and BBC World Service, will explain, the research discovered that much of the assumptions we might make about how Millennials think, feel and behave actually only reflects Affluent Millennials first and foremost.

The study explored how these Affluent Millennials engage with brands, and what they expect for their loyalty. In doing so, it discovered how this is affected by, in particular, their unique relationship with money and the environment.

The session takes place in the Inspire theatre on Wednesday November 8 at 12.45 – 13.45. During it, a panel of experts will also unveil insights on Affluent Millennials and their relationship with brands within the travel industry.

The discussion will include the role brands have in the lives of this market, what external factors influence their travel decisions, and what Affluent Millennials look for when it comes to travel and travel-based marketing.

WTM London, Conference and Seminar Manager, Charlotte Alderslade, said: “WTM London is the event for the release of research and discover the latest trends in the travel and tourism industry.

“This year, WTM London will unveil exclusive research from Euromonitor International, Nielsen and ForwardKeys. I am delighted to be able to include BBC World News to the list. Travel companies the world over are looking to target Millennial customers and this session will help them do that.”

The value of properties in the UK has risen by five per cent in the last year, adding more than £10,000 to the price of an average home.

New figures from HM Land Registry show a typical property sold for £225,956 in August, up from £215,143 in the same month in 2016.

Increases over the last 12 months have been largest in the north-west, where house prices have risen by 6.5 per cent. This was followed by gains of 6.4 per cent recorded in the East Midlands, east of England and the south-west.

Kevin Shaw, national sales director at property specialist Leaders, says: “The strength and prosperous nature of the country’s property market has once again been shown in these new statistics.

“The fact every single region across the UK experienced an increase of at least 2.6 per cent in house prices over the last year shows the market’s resilience despite the uncertainty of Brexit and gives sellers and buyers great confidence to make their next move.

“A significant rise in house prices is good news not only for homeowners who now have more options open to them when it comes to either moving or releasing equity in their property, but also for landlords whose rental return is topped up by substantial capital growth that is realised when selling.

“However, rising house prices are not good news for everybody and can make getting on the ladder less affordable for some. Next month’s Budget is the ideal opportunity for the government to show it is on the side of prospective first-time buyers by reducing or even abolishing stamp duty for this group.”

The statistics show that while the average property is worth £225,956, first-time buyers actually pay an average of £190,792 while those who have previously owned a property typically spend £262,156.

Kevin adds: “Looking ahead to the next 12 months, the outlook for the property market remains extremely positive. With the exception of the prime central London sector, further rises in house prices are expected across the country.

“Demand for all types of homes remains high and supply in many areas is not great enough, so we anticipate a busy and booming market for some time to come.”

Following a reported 10% rise in mead sales in the past year, Lyme Bay Winery is predicting a craft beer-like movement hitting the UK over the coming months, as everyone from historical reenactors to cocktail connoisseurs embrace the revival of this honey-based tipple, which was one of the first alcoholic drinks to be created. Dubbed the fasted growing alcohol sector in the US, mead is steadily becoming the drink of choice for many in the UK and continues to be the Devon-based producer's bestselling range.

Rich, sweet, sophisticated and packed with polyfloral characteristics, Lyme Bay Winery's meads are made using a unique blend of Mexican, Chinese and English honey foraged from the most aromatic of indigenous flowers. Combining traditional and modern techniques, the honey blends, which are filtered naturally, are diluted with water and fermented in stainless steel vats.

Unlike many mead producers, Lyme Bay Winery sticks with the age-old method of deriving the fermentable sugars from the honey without grapes, while also using the most up-to-date winemaking techniques including the use of selected wine yeasts and cross flow filtration to create its unique and distinctive range of award-winning meads. Best served at room temperature, mead is the perfect accompaniment to cheese, spicy food and even ice cream.

Firms in the West Midlands experienced the slowest increase in business activity in over a year during September, although growth still remained above the UK average, according to the latest Lloyds Bank Regional Purchasing Managers’ Index (PMI) survey.

The West Midlands business activity PMI registered at 55.2 in September, down from 58.6 in August. A reading above 50.0 shows an expansion in output, while a reading below 50.0 indicates contraction.

Despite losing momentum, the pace of the region’s output growth was above the UK average (54.1).

Businesses also experienced a steep rise in new orders, as new customers boosted order intakes. Firms took on more staff at a faster rate than what was seen at national level, to satisfy the growing demand.

Business confidence remained high, with firms introducing new products and expecting increased sales over the next 12 months. However, the level of optimism was slightly lower than in August.

Meanwhile, unfavorable exchange rates contributed to higher input costs for firms. The increased cost burdens were partly passed on to clients through higher prices charged for goods and services

The Lloyds Bank PMI is the leading economic health-check of UK regions. It’s based on responses from manufacturers and services businesses about the amount of goods and services produced during September compared with the previous month.

Mark Cadwallader, regional director for SME banking in the West Midlands at Lloyds Bank Commercial Banking, said:

“West Midlands companies finished the third quarter with a solid expansion in business activity, however it was marked by its slowest growth in 13 months. Nevertheless, robust growth in activity and new orders helped to boost job creation, which were higher than the national level.”

“As we enter the final quarter of 2017, we start the countdown to the Christmas holidays. Businesses in the consumer goods and hospitality sectors will need to ensure they manage their working capital carefully, in order to take advantage of increased demand from events like Black Friday, Christmas and New Year.

“Last month our Working Capital Index report found that businesses in the West Midlands have £42bn tied up in excess working capital, which includes assets like stock and invoices. Cash that’s tied up in working capital can be released and invested in creating more stock or building capacity to meet higher demand over the festive season.”

Deputy Mayor of Wolverhampton, Councillor Phil Page, officially opened a new vintage tea room – boosting the number of start-up businesses in the city centre.

K Teas Cakes is now serving up home-baked cakes, afternoon and cream teas, and coffees, at Unit 4, St Georges Parade.

It is a venture being driven by 41-year-old owner, Caty Jones, who has lived in the City of Wolverhampton for the last 27 years.

She adds to the number of female entrepreneurs in the city, which was highlighted as an ambition at Business Week’s Inspiring Women into Business event.

And Caty is keen to ensure she supports local businesses - sourcing her fruit and vegetables from the city centre market.

Even the furniture and kitchen appliances have been purchased from City of Wolverhampton businesses.

Caty said: “I know Wolverhampton well and the city is on the up with all the regeneration going on and businesses like Debenhams opening.

“I have had great business support from council partner Access to Business and also PeoplePlus to get where I am.

“There is nothing like this in the city and I chose the location because it is close to where the new city centre market will be.”

Alongside the vintage theme, the tea room has work areas where people can plug in their USB devices.

Councillor John Reynolds, City of Wolverhampton Council Cabinet Member for City Economy, said: “Business start-ups like this are really important to the city and I want to wish Caty well with her new venture.

“We very much value the contribution of these small businesses and the creative local people behind them.

“These are the businesses that help give Wolverhampton its own identity and character.”

A state of the art club, the biggest indoor bouldering centre in London, and the number one producer of kale crisps in Europe are just some of the businesses reaping the rewards of the Opportunity Investment Fund.

The £3.65m loans programme, jointly funded by Haringey Council and the Mayor of London, is encouraging businesses to invest in Tottenham. So far a dozen, diverse businesses and start-ups have taken advantage of the fund to spend on such essentials as refurbishment, expansion, creating new jobs or paying for more machinery.

On Wednesday 25 October an event is being held for interested businesses to find out more about the fund and to meet those who have already benefitted from it. The only initial criteria being that the business must be based in Tottenham or is planning to move there.

“It will be a good chance for people to hear details about the loan fund and how it can help their business grow,” said Keith Trotter, Tottenham Town Centre Growth Manager at Haringey Council. “Tottenham has become a great place to move to and is that sweet spot combining excellent transport links and an easily accessible location that is still relatively affordable.”

The event will be hosted at Five Miles in Markfield Road N15; a new bar, club and brewery that used part of the loan to pay for the custom-made club space and equipment.

“The club is a world-class performance and dance space which will help put Tottenham on the map,” said joint-owner Mark Shaffer. “We’ll be open seven days a week with events most nights and we see this as a cultural hub for the area. Dealing with the council on the loan has been a breath of fresh air and the support we’ve received has been brilliant.”

“More businesses should take advantage of it if they are intent on growing their business,” added Dominik Schnell, co-founder of inSpiral Visionary Products. “At the moment we produce about 200,000 bags of kale chips a month but we hope to double that in the next five years.”

The Coalition for Marriage, (C4M) has appointed a new Campaign Director.

Thomas Pascoe, a former journalist and senior manager of one of Britain’s largest international development projects, will take up the role on Wednesday 20^th September, although he has been advising the organisation for several months.

C4M is the UK’s largest pro-traditional marriage organisation with hundreds of thousands of supporters. It was set up in 2012 to oppose Government attempts to redefine marriage and promote the traditional definition of marriage as being between one man and one woman, to the exclusion of all others and for life.

Colin Hart, the outgoing Campaign Director who will remain as Chairman, commented: “I am delighted to pass the baton on to Thomas to carry on our work of supporting those who believe in traditional marriage and are concerned about politically correct state interference in this ancient institution.”

Mr Pascoe added: “Traditional marriage and its supporters remain under attack by an army of politicians and activists. No institution does more for the wellbeing of children or society than traditional marriage, and I promise to do all I can to protect it against the assaults of those who would rather sound good than do right.”

C4M has set out ambitious plans for the coming year in a brochure for supporters, which will be issued at the same time as Thomas’ appointment. The Coalition will concentrate on a range of initiatives across education, transgenderism, press fairness and freedom of speech. Later this month it will publish new polling it has commissioned.

Before joining C4M, Thomas ran a major international development programme in Nigeria for four years. He has also worked as the assistant comment editor for the Daily Telegraph and as an underwriter in the Lloyd's of London insurance market.

He read Philosophy, Politics and Economics at Oxford University and is also a Chartered Insurer. He is married with one child.

Mr Pascoe concluded: “Five years ago we warned that same-sex marriage would lead down a slippery slope. Now even the idea of man and woman is seen as offensive in some public bodies, lawyers are pushing for no-fault divorce and a sexual free-for-all is being encouraged in our classrooms. In response we are preparing for our biggest campaigning year since the Same-Sex Marriage Act became law.  We will stand up for those who believe in traditional marriage and provide a voice for those left voiceless in the current debate.”

With over 70 businesses exhibiting and approximately 500 delegates in attendance, the Black Country Chamber of Commerce were delighted with the success of their Annual Exhibition.

Having taken place on 28^th September at Wolverhampton Racecourse, the event marked the culmination of Wolverhampton Business Week and offered the local business community an insight into a range of innovative technologies. In addition, a series of seminars took place that shared knowledge on a variety of business related topics, including skills, international trade and competitiveness. Also new for 2017, there was a funding marketplace on-hand to offer businesses support and advice on how to maximise their growth potential.

Amongst those businesses showcasing their technological prowess, Stone's Throw Media demonstrated a drone over the racecourse, whilst Atmos VR invited delegates to try out a virtual reality headset, and VOiD Applications offered an insight into smart factory applications. Matt Weston, Director of Stone’s Throw Media, commented: "We have had a lot of interest in our video production services and have had meaningful conversations with a range of companies."

From a delegate perspective, Kevin Rogers, CEO of Paycare, commented: "It has been a fantastic Exhibition. There have been more people than I have seen here before, and there is a real feeling of enthusiasm around the place and lots of positivity. There is a genuine feeling that despite this being a time of political uncertainty, there is a need to get on and grow. No one can afford to wait around."

Following the Exhibition, the Black Country Department for International Trade team ran a Trading with Europe Live event, whereat companies were able to Skype with traders in nine countries to discover export opportunities and get advice on growing their business.

Corin Crane, Chief Executive at the Black Country Chamber of Commerce, commented: "This year, we have endeavoured to offer a more diverse and holistic experience for our Annual Exhibition. The business insight seminars have proven to be a resounding success, as too have the technology demonstrations that we’ve had taking place throughout.

"In essence, our Annual Exhibition is a great opportunity for local businesses to show just how good they are. Furthermore, with it taking place during Wolverhampton Business Week, there is a real collective energy across the region of the business community coming together."