Confidence returns to Shropshire businesses

Shropshire Chamber of Commerce has published the results of its quarterly economic survey, which show that businesses saw sales take an upward turn in the first quarter of the year.

The final part of 2016 had seen a significant decline in the number of businesses reporting improving sales.

Now they have taken another upward turn, suggesting businesses are responding well to signs of clarity in the wider economic landscape.

Chamber chief executive Richard Sheehan said: "The uncertainty around the triggering of Article 50 and the lock of clarity from government at the time of the previous survey was influencing confidence, and decisions.

"But as we have moved on and it has started to look as though it would happen businesses felt more like they knew where they were.

"It is better to know what's going to happen than to now know at all. These figures are mirrored nationally in most cases."

More than half of businesses reported improved sales while those reporting falling sales dropped to about 15 per cent.

Those reporting improved orders, which will become future sales, also took an upward turn, as did export sales. A drop-off in confidence around revenue and profit growth has been reversed.

However, the news isn't universally positive, as export orders have tailed off, plans to invest in plant and machinery have stalled, and staffing levels appear static.

Of those who have attempted to recruit in the last three months, about 70 per cent have struggled to find the right staff, pointing to an ongoing crisis in skills in Shropshire.

"There are challenges around recruitment," Mr Sheehan added. "The ongoing uncertainty around EU nationals is not helping.

"There are companies that are looking to recruit.

"I sat with a company recently where 70 per cent of the workforce is Polish.

"The uncertainty in the workplace at the moment isn't helpful when you are looking to recruit people and bring them in and support the economic growth of this country.

"We need to retain what we have already got. The Government gets it – they have been lobbied by every business organisation in the country – and we want to see action, clarity, and good leadership on this."

The survey also showed that business rates changes have overtaken exchange rates as the biggest cause for concern among businesses in Shropshire.