Black Country firms see pick up in Q3 sales

MORE than a third of businesses in the Black Country have seen an increase in their sales during the last three months, a new study has found.

The Black Country Chamber of Commerce’s Q3 Quarterly Economic Survey found that 36% of respondents had seen an increase in sales between July and September.

A quarter (25%) of firms completing the survey said they had grown their workforce during the period; with 30% predicting their headcount would increase further over the next 12 months (up respectively 4% and 2% from Q2).

The QES also found that 6% more manufacturers and 14% more service sector respondents had increased their recruitment activity in Q3. This was tempered somewhat by 12% of firms reporting greater difficulties in recruiting the staff they need.

However, the chamber said the figures masked some of the uncertainties being experienced by manufacturing companies.

The proportion of manufacturing companies saying that their export sales and orders had increased declined 14% on Q2 and the chamber said expectations that turnover and profitability would increase over the next 12 months had dropped by a respective 18% and 15% since the start of 2015.

Bhanu Dhir, Head of Policy at the BCCC, said: “Skills remains a barrier to growth and exporting. Businesses cannot find the appropriately skilled people they need.”

One firm said it could double the size of its business if only it could find the right people.

Nevertheless, 83% of manufacturing and 84% of service sector respondents expect prices to drop or to remain constant over the next 12 months.  

Only 21% of manufacturers and 34% of service sector companies are operating at full capacity.

Commenting on the survey results, Kevin Rogers, chief executive of Paycare and BCCC vice president, said: “We agree with the British Chambers of Commerce’s assessment that confidence remains fragile. Many of our manufacturers are metals based and the differences between input and output exchange rates (dollars and euros) is putting them under considerable pressure and eating into their profitability.

“We have a mixed picture: the service sector appears to be performing well.

“Many of our export markets are becoming problematic: China, Europe and Russia for example and encouraging businesses to find new markets takes time.”

The details of the survey will be presented at the chamber’s QES Breakfast Event on October 13 at the Park Inn, West Bromwich.