How Covid has hit the Notts business sector
‘IN RETAIL THINGS HAVE HAPPENED THAT ARE IRREVERSIBLE’
RESEARCH has revealed how businesses across Nottinghamshire and the wider region were affected when the economy “fell off a cliff edge” amid the coronavirus pandemic.
In March last year the entire country was placed into lockdown, with manufacturing, hospitality, retail, transport, private and some public sector industries shutting up shop to prevent the spread of what was a relatively unknown virus at the time.
More than a year has since passed, with three national lockdowns as well as local tiered restrictions thrown into the mix along the way, and it has all had a resounding impact on Britain’s economy.
The East Midlands Chamber, which connects businesses to funding, skills and experts to help them grow, continued to conduct its quarterly surveys during the pandemic and its research has revealed the true impact on businesses in the region.
Chris Hobson, director of policy and external affairs at the Chamber, spoke about the impact in Nottinghamshire and East Midlands and explained the research.
The survey responses have been put into a graph, and include answers to questions about whether cashflow, staffing and recruitment declined or increased, as well as future profitability and turnover hopes and predictions.
The so-called “State of the Economy Index” graph clearly displays that in the secon quarter of 2020, the score dropped to the lowest levels on record following a steady decline throughout the Brexit years.
Explaining this, Mr Hobson said: “In the first quarter when the pandemic hit, things essentially just plummeted.
“That was in all sectors. Lots of things essentially stopped. The economy was cut off at the knees overnight.”
While the situation did indeed look entirely perilous, Mr Hobson emphasised the economy in the East Midlands came back fighting.
On a macro level, he said, “the bigger picture is positive”. He added: “Actually we saw a good recovery in the third quarter of last year, and that survey took place in late August, early September, we just had the Eat Out to Help Out, [coronavirus case] numbers were low, the economy picked up pretty strongly.
“The economy learned lessons of first lockdown in the second. “Then we had the second national lockdown and things stalled. But the economy didn’t go backwards. “Businesses feel like they are in quite a strong position. It is particularly led by manufacturers in the city and region.
“They are doing well. A lot of them spent the downtime last year investing and we are starting to see the fruits of that now. But the service sector businesses that normally lag behind, we are still seeing that.” He described the current situation so far this year as hopeful. However, some of the challenges of the past year have led to irreversible change. These changes can be seen in the latest unemployment data, where numerous areas within Nottingham have witnessed a surge in people being left without jobs. Some of the bigname high street retailers have also taken much of the brunt-force impact, including Debenhams and other outlets on the city and town centre scene.
Sales companies, photographers and beauty salons across Nottinghamshire were also hit hard by the pandemic. Some of the longer-term effects of the pandemic could well include inflated prices due to raw material costs rising, with those prices eventually “passed down” to customers and consumers.
Mr Hobson said it is therefore important for businesses, and the high street in particular, to continue to innovate.
He said: “Of course, within that, there are businesses that are really struggling.
“For example in retail things have happened that are irreversible, with the likes of Debenhams and those mid-market retailers where they cannot compete on luxury and quality and can’t compete on price.
“They have gone and they won’t come back in the same way.
“What’s more interesting is what fills that gap.
“I think there is a chance for places like Nottingham and also towns like Mansfield to benefit from more independent-type retailers.
“One of the challenges will be, some of the jobs we have lost, retail jobs and hospitality and leisure, they won’t come back in quite the same way, but there might be jobs that come up elsewhere in the economy.
“A mistake we cannot make is trying to create a city centre that looks the same coming out of the pandemic as going in. Planners have zoned city centres, we need mixed zones where people live, work and play in the same space.”
We need mixed city centre [zones] where people live, work and play in the same space Chris Hobson