Marine biotech firm joins Croda
RISING TAXES and overheads are causing businesses in Hull to sound a note of caution for the forthcoming year.
Research by the Hull & Humber Chamber of Commerce reveals that price pressures are having a more pronounced effect at the end of the year than at the beginning, with 35 per cent of firms expressing concerns about interest rates and 52 per cent of companies worried about competition, nearly 10 per cent higher than last year.
On tax issues, concern was higher than last year, specifically on inflation and business rates.
All told nearly two thirds of Hull’s firms said they expect prices to rise in the next three months, up 23 per cent on the third quarter, which saw the balance figure rise from 32 in quarter three to 59 in quarter four, its highest level for two years.
Turnover expectations for the next 12 months showed a degree of positivity, with the balance figure rising 12 points to 48, while profit expectations also improved slightly, rising six per cent to 27.
However, fewer firms were working at full capacity, with a figure of just 34 per cent.
Chamber chief executive Dr Ian Kelly said: “The quarter point increase in interest rates which happened during the fieldwork period for this survey has highlighted the pressures businesses face as they adopt a cautious approach as we head into a new year.
“However, we welcome the good news from the Government that the Brexit talks are moving into the next phase to secure a trade deal, along with positive economic noises from the USA and China which may help to restore important business confidence in the coming months.
“It’s good to see that home sales and export sales are still maintaining their positive numbers and companies may keep looking to invest more in training as we start 2018.
“Continued business investment, especially in training, is crucial to address the skills issues which are now affecting the UK, not just our part of the world here in the Humber.”
At home, domestic sales were up, with the balance figure rising six points on the previous quarter, while home orders fell back slightly to 17 points, down one point.
Abroad, the balance figure for export sales was down four points to 29, while export orders, possibly reflecting the exchange rate, were up 14 points on last quarter, just two points shy of its highest level in 2017 – 38 in the first quarter.
Set against the background of rising inflation, pay settlements were a growing concern for businesses, as was finance, with the balance figures rising by 14 per cent and 20 per cent respectively, although raw material costs were less of an issue this time around.
The employment figure for the last three months was also down in quarter 3, dropping 11 points to 14, although more businesses were planning to increase their employment levels in the next three months, with the balance figure rising three points to 10.
There was positive news with 20 per cent more firms looking for permanent staff, redressing a blip in the third quarter’s figures, while 88 per cent of those jobs were full-time positions.
Skilled manual jobs and unskilled or semi-skilled roles proved to be the hardest to fill in quarter 4, while clerical and management vacancies were less difficult to recruit for.
A spokesperson for the British Chamber of Commerce nationally echoed the downbeat view, saying: “Looking forward, the UK economy is set to continue on an underwhelming growth trajectory over the near term with uncertainty over the impact of Brexit coupled with high inflation and weak productivity likely to dampen overall economic activity.”
Chemicals manufacturer Croda International has acquired a Canadian marine biotechnology company as part of its strategy to invest in ‘disruptive’ technologies.
The Goole-based firm snapped up Nautilus Biosciences Canada based in Charlottetown, Prince Edward Island, Canada.
Croda intends to establish Nautilus as a Croda Centre of Innovation for Marine Biotechnology at Nautilus’s existing base at the University of Prince Edward Island. The move will enable Croda to bring new, patented products to market.