The South Wales Chamber of Commerce is today (Tuesday 8 October) calling for the professional sector in Wales to play a greater role in supporting business growth following the publication of its latest Quarterly Economic Survey (QES), which shows that Welsh exports have remained largely static over the last quarter.
The survey for Q3 of 2013, which is supported by Santander, reveals that, while the number of businesses reporting strong UK sales is positive, up by 10% (from 74% to 84%) over the last quarter, exports have only grown by around 1%.
This is despite the increased availability of an array of support packages from Welsh Government and the efforts of business support organisations.
Graham Morgan, director of the South Wales Chamber of Commerce, said: “Despite strong sales at home, it is disappointing to see that the figures for exports have barely moved over the course of the year.
“In the past we have called for Welsh Government to do more to help businesses access overseas markets, and to their credit we have seen a range of support packages put in place to do just that. The South Wales Chamber and other business support organisations have also been playing their part, so now we have to ask the question – what more can we do to encourage businesses to access these services?
“We believe that the answer lies with the professional sector here in Wales, the bankers and accountants, who should have a real grasp over their clients’ activities, their products and services, and are better placed than anyone to understand their capacity for growth. We need to see some joined-up thinking, with the professional sector flagging businesses that could take advantage of the available awareness workshops that will help them to understand better what overseas markets have to offer.
“If we can utilise the professional sector in this way to tap into a new stream of businesses and direct them to the support on offer, I am confident that Wales can really grow its export market, and become a bigger player on the international stage.”
The Quarterly Economic Survey monitors the performance of businesses in Newport, Swansea, Cardiff, Mid Wales and the surrounding regions and acts as a barometer for the strength of the Welsh economy.
It has also revealed that more than half of the businesses currently recruiting staff (57%) reported difficulty in finding the right candidates for the job. This has risen throughout the year, from 40% in the first quarter, and represents a real concern for the South Wales Chamber.
Mr Morgan said: “An increasing number of businesses are telling us that they are struggling to find people with the right skills, which is worrying and something we have been looking at for some time now.
“A concerted effort is needed to connect the mismatch that exists between the requirements of the business community here in Wales, and the subjects being studied by a majority of young people who are leaving school and college without the skills needed to take advantage of local jobs, particularly in the manufacturing and engineering sector.
“We believe that a dedicated six-month business studies course for young people seeking employment would help to develop their core skills, and better equip them for the business environment. A closer link between schools, colleges, the private sector and academia would also help to redress this imbalance and allow Wales to keep hold of its home grown workforce.”
Ieuan Rosser is the managing director of leading Welsh recruitment company Smart Solutions. He said:
“We are seeing a marked increase in clients who are finding real advantages in uplifting the percentage of the workforce they outsource as flexible staff. It allows them to adjust resource levels in response to the demands of their business needs, and minimizes the financial and reputational damage associated with redundancy exercises.
“This increasing pressure on businesses to fill positions quickly and recruit ‘job-ready’ candidates who can come in and start work immediately with minimal training is a challenging situation.’
“Unfortunately, we find that many of the candidates coming through our doors are lacking in many basic skills, and this needs to be addressed at school and college level. Young people need to be given training and instruction in skills, such as completing job application forms, formal communication, interview techniques, and work ethics as part of their education if we are to give them the best possible chance of finding work.
“That said, clients are finding that there is a greatly improved performance from candidates who have been through our ‘pre-employment training’, which is designed specifically to tackle these issues. Applicants learn business specific skills, and possibly undertake a period of work experience to ready them for a role, and we anticipate that demand for this service will continue to grow over time.”
The survey also shows that the confidence of businesses in south Wales has risen over the course of the year, with more than two thirds of businesses (89%) expecting to increase their profitability over the next year. This is up from 80% in the first quarter of 2013 and higher than at any point during 2012.
Graham Morgan said: “With every QES survey we have carried out over the last two years we have seen the confidence in the business community building, but this hasn’t always led to direct investment in their future growth.
“Our latest survey has seen a rising investment in both equipment and training, and we will be monitoring closely to see if this trend is continued over the course of the next quarter. Investment in the future is the real measure of confidence, and to see this rising is a hugely positive step forward.”