BUSINESS NEWS
John Mortimer: skills shortage remains ‘centre stage’
Paul Faulkner: manufacturers facing ‘major’ problems with recruitment
Stephanie Wall: interest rate uncertainty is ‘concern’
Survey highlights skills shortage R
ecruitment difficulties for Greater Birmingham manufacturers are at a
record high – with an overwhelming 89 per cent of firms facing hiring problems, especially for skilled workers. Figures from the economic
survey by Greater Birmingham Chambers of Commerce for the last quarter of 2015, supported by recruitment and people development agency Katie Bard, show that staff recruitment concerns among manufacturers are at their highest level according to official figures, which date back to autumn, 1997. Worries over business rates and
competition have added to the squeeze on firms amid evidence that completed sales and future orders have declined over the last three months. But the service sector paints a
more bullish picture, with almost two-thirds of firms (59 per cent) confident that profits will improve over the next 12 months and 71 per cent anticipating a sales surge. The equivalent figures for
manufacturing are 37 per cent (down from 71 per cent three months ago) and 45 per cent (down from 64 per cent). Less than a third (31 per cent) of
manufacturers say UK sales have increased in the last three months compared with 50 per cent in September. The figures are roughly the same for advance orders, 31 per cent for December compared with 52 per cent in September. The trend is replicated in
manufacturing export markets, with 30 per cent of firms saying exports have increased in the last three months compared with 50 per cent in September. The respective figures for advance orders are 25 per cent against September’s 50 per cent.
GBCC policy advisor Stephanie
Wall said: “Concerns among manufacturers included low oil prices and the exchange rate. “Another concern was the
uncertainty around the interest rate. After a constant interest rate for almost seven years, there is wariness from businesses over the market reaction when the rate does finally rise. “With the Fed having now raised
the US interest rate, the Bank of England may now increase the UK rate in the New Year. We however urge the Bank of England to give plenty of forewarning to the business community if a rate increase is planned.” Paul Faulkner, chief executive of
the GBCC, said: “It is an exceptionally worrying trend that nearly nine in ten manufacturers in the West Midlands are facing major problems with recruitment. “The West Midlands is
traditionally a very resilient region but if firms cannot attract the right calibre of candidates, then it makes it far more difficult for companies to plan ahead with a reasonable degree of certainty. “The government should be
aware that continuing skill shortages can only increase the headaches for manufacturers, many of whom may well be still recovering from the impact of the recession. “The skills gap is a long-term
problem that will not be resolved with short term fixes.” John Mortimer, co-founder and
chief executive of the Angela Mortimer group, of which Katie Bard is a member firm, said: “Anecdotally, it is our experience that the last six months of the recovery has been very bumpy. “Underlying sentiment seems to be still confident, but the maths
A record number of firms are failing to find skilled workers to fill vacancies
‘The Government should be aware that continuing skill shortages can only increase the headaches for manufacturers’
behind that has showed signs of unravelling and this has eaten into confidence at operational decision making level. “Birmingham itself has been
consistently firm with evidence of opportunistic hires when interesting talent has been spotted. “The temp area also seems
slowly to be firming up, which suggests capacity is being challenged, in the administration area at least. In view of my comments about the CBI’s recovery of productivity report at the last QES presentation, this is not so surprising. It could also be interpreted as an underlying firmness in general operations. “The subject of a skills shortage
continues to be at centre stage, and it is the view of the Greater Birmingham Chambers that the subject should be tackled here in the West Midlands. “Hopefully, this will stir up some ideas, which will lead to action.
Having said that, I think I should warn everyone that dealing with the skills gap is going to create considerable pain for pretty much all of the macro-level institutions in the country. It is going to need some radical creative thinking, and of course, some interesting action. “The challenge of holding those
who have the ability to make change succeed in Birmingham, and thus create a destination city for talent, cannot be solved in simple cash any more. Fortunately, here in Birmingham, there are a significant number of working examples of radical new employment thinking. We call them the ‘progressive employers’.” The results of the GBCC QES
survey were presented at a breakfast event sponsored by law firm Squire Patton Boggs on 20 January.
For more stories on skills, please see pages 42-44 and 56-57.
FEBRUARY 2016 CHAMBERLINK7
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68