Tag Archives: QES

Business, Business Advice, Economy & Jobs News, Wales

Recruitment, trade and taxation sticking points for businesses in Q3

Businesses in Wales have revealed the opportunities and challenges they faced in Q3 of 2024 in Chambers Wales South East, South West and Mid’s latest Quarterly Economic Survey.

Businesses in Wales who trade goods and services domestically performed well. Over two thirds (68%) of businesses taking part in the survey traded in the UK only. 38% of these businesses stated that there had been an increase in UK sales and 33% reported an increase in orders and advanced bookings, with both of these figures up from Q2.

It was a mixed picture, however, for Welsh businesses who trade internationally. Almost a quarter (23%) of businesses in Wales shared that their export sales had increased in the last three months, up from 15% in the previous quarter, but only 7% saw export orders and advanced bookings increase in Q3.

David Peña, the Chamber’s International Trade Manager, said: “Many of the survey respondents cited new markets as an opportunity for their business so we need to ensure that those who wish to export can access the guidance, support and contacts they need to fully achieve their trade ambitions.

“Welsh businesses have so much to offer on the international stage. Different markets bring different challenges, and penetrating these markets requires innovation and information. We heard several inspirational success stories from exporters across Wales at our recent exporting excellence event held in collaboration with our partners Atradius and Welsh Government, showing how the right support and ideas can make exporting a reality.”

The Quarterly Economic Survey for Q3 also revealed that recruitment continues to be a sticking point for many businesses in Wales.

54% of the businesses surveyed attempted to recruit staff in the last quarter, primarily for full-time positions. 79% experienced difficulties recruiting, particularly for professional and managerial positions, citing a lack of appropriate, experienced candidates and skills requirements not being met.

While recruitment and retention remain an issue, an improved economic picture has led to a shift in which external factors are more of a concern to businesses in Wales than they were three months ago. 55% of businesses in Wales stated that taxation was more of a concern this quarter, more so than interest rates, business rates and inflation.

Paul Clark, President at Chambers Wales South East, South West and Mid, said: “With an ongoing skills shortage in the private sector and concerns regarding taxation, businesses in Wales will be watching the Autumn Budget later this month with great interest. Throughout the election campaign and their time in office to date, the government has repeatedly stressed its commitment to boosting economic stability and growth, and the Budget will be chance to set these measures to develop the economy and remove barriers to a higher growth future.”

Data & Analytics

Recruitment, skills and labour pressures felt by Welsh businesses in Q1

Businesses in Wales are continuing to face challenges regarding recruitment, the ongoing skills shortage and labour costs, according to Chambers Wales South East, South West and Mid’s latest Quarterly Economic Survey.

In the survey for Q1 of 2024, 46% of businesses in Wales reported that they had attempted to recruit staff, predominantly for full-time and permanent roles. 69% of those who attempted to recruit experienced difficulties in finding suitable staff, a 5% increase compared to the previous quarter, with businesses citing finding candidates with the correct skill sets and qualifications as barriers to recruitment and meeting salary expectations as a challenge for retention.

Salaries and other labour costs were also stated as a key business pressure, with 75% of businesses in Wales feeling under pressure to raise their prices because of these costs. This is also reflected in the national picture with the British Chambers of Commerce reporting that 68% of UK businesses cited labour and staffing costs as their main cost pressure.

However, despite these challenges, there is optimism. 46% of Welsh businesses believe that turnover and profitability will improve over the next 12 months.

Paul Butterworth, CEO of Chambers Wales South East, South West and Mid, said: “The results are a timely reminder of the ongoing challenges businesses in Wales face, particularly around ongoing issues such as recruitment, skills development and employee retention.

“While the economy is caught in a low-to-no growth cycle and managing the effects of interest rates and inflation, businesses have been hesitant to invest in training and skills. With consistent and lower inflation, we hope that the Bank of England will lower interest rates to stimulate investment into skills and the seeds of economic growth.

“In the new first minister’s leadership manifesto, he included pledges to provide flexible and timely reskilling opportunities, a much-needed reinvestment in apprenticeships and developing regional sectoral skill centres for excellence. It is our ask that he starts to deliver on his pledges to rekindle Wales’ productivity levels, a skilled Welsh workforce and business support for economic growth.”

The latest edition of the Quarterly Economic Survey also included questions specific to changes happening in Wales such as the election of the new first minister and the new workplace recycling law.

94% of businesses in Wales had heard about the workplace recycling law which came into effect from 6 April, with 71% aware of the changes and how it affected their business.

Over a quarter (26%) of Welsh businesses were aware of the recycling changes but were unaware of how it affected their organisation and only 3% were unaware of the changes or how it affected their business. These businesses suggested that clarity, simple guidelines and research would help them comply with the new law.