A panel of business leaders in Coventry and Warwickshire have underlined the challenge ahead to get the economy growing more quickly – but say they are ready to meet the task head on.
The Coventry and Warwickshire Chamber of Commerce held an Economy & Skills Breakfast event, sponsored by Prime Accountants Group, at Stratford-upon-Avon College to analyse Government proposals to secure economic growth and to discuss some of the barriers firms had faced over recent years.
Emma Wilks, HSBC’s UK economist, kicked the event off by looking at the economic landscape the new Government has inherited before being joined in a discussion by Jason Aldridge, of Arrowsmith Engineering; Lisa Hughes, of the RSC; Nadia Davies, of Stratford-upon-Avon College; and Paul Guise, of Prime Accountants Group, which was a partner on the event.
Emma said: “It has been a challenging few years for businesses but there is some positivity to report, and although mixed with ongoing challenges, it does appear that we are heading in a brighter direction.
“The growth achieved in the first quarter of the year reversed the short recession at the end of 2023 and inflation has dropped down to the two per cent target from its peak of 11.1 per cent.
“Unemployment is at 4.3 per cent and remains low by historical standards.
“We expect interest rates will come start to come down but they will remain in restrictive territory for some time.
“The number of people who have left the workforce has risen in recent years and has likely contributed to recruitment difficulties and rising wages.
“Further to that, we are not forecasting the same levels of economic growth as the Office For Budget Responsibility (OBR).”
Jason said Arrowsmith Engineering, an aerospace company based in Exhall, had been hit hard by the pandemic and the immediate aftermath.
He said: “Material prices were only being held for 24 to 48 hours and wages were spiralling. Our gross profit was hit.
“The only way to grow was to be more productive, but we’ve had to make sure we matched the same incentives to staff that some of the major manufacturers are offering or we would have lost people.”
Lisa added: “There have been serious economic pressures and the RSC has felt those, like every business.
“When it comes to recruitment, there are certain roles here that people see as a vocation but when it comes to business support – finance, HR, IT – we’re competing for talent like any other business and have to make sure we stand out.”
Paul said this was something that was apparent at Prime Accountants and throughout its client base. “You have to show prospective employees your USP,” he said. “That’s the only way you will draw in staff. There is a shortage of people in the industry and we have to keep making sure we bring on the next generation.”
Nadia said: “What we see here at Stratford-upon-Avon College is that sometimes the jobs that young people want aren’t always the ones that are on offer.
“The career landscape has changed considerably and there is no doubt that employers now have to sell themselves to employees, which was not the case a few years ago.”
Corin Crane, chief executive of the Coventry and Warwickshire Chamber of Commerce, facilitated the event.
He said: “It was an absolutely fascinating morning, with a hugely insightful panel discussion.
“The Government’s growth agenda is one that businesses support but it’s crucial that we keep talking to and listening to companies of all sizes and sectors to ensure that the issues that are holding them back can be understood and resolved.”
Pictured (left to right): Sean Rose (Chamber), Lisa Hughes (RSC), Corin Crane (Chamber), Emma Wilks (HSBC), Jason Aldridge (Arrowsmith Engineering), Paul Guise (Prime Accountants Group), Sandra White (Stratford College).