A new survey by Barnsley & Rotherham, Doncaster and Sheffield Chambers of Commerce suggests that financial pressures are easing for businesses.
In a joint statement about the survey’s findings, the CEOs of the Chambers have issued a joint statement. They say: “Our survey results show promising, albeit tentative, signs that financial pressures are beginning to ease for businesses, though this still remains a pressing issue across all sectors.
“It’s encouraging to see that, for the third consecutive quarter, expectations of both improved turnover and profitably have increased, suggesting that there is a broader feeling of optimism for the months ahead. Better still, we are pleased to report that 93% of firms that were polled agree that South Yorkshire is a fundamentally good place to do business. This suggests that businesses feel that there are opportunities available to them locally and that organisations are doing what they can to promote a positive business environment. There is, of course, always room for improvement.
“While some key areas are stronger than they have been in recent quarters — such as those relating to cash flow positions, price increases and capacity — it is worth stressing that indicators of financial pressure do remain.
“Concerns about inflation might be lower than they have been since the end of 2021, but that’s only a relative drop from a historic high. Meanwhile, subdued economic activity continues in South Yorkshire, with weak growth being reported in terms of both domestic sales and overseas orders.
“Not to mention, hiring conditions are still proving to be a massive challenge for businesses. A staggering 94% of firms told us that they have experienced recruitment difficulties this quarter, which is a worrying jump from the 87% that was recorded this same time last year. In particular, businesses are struggling to attract skilled manual & technical workers, as well as professional & managerial talent. Of course, the tight market is, in and of itself, a significant contributor to the runaway inflation that is presently bedeviling the economy.
“As for how South Yorkshire employers are being affected by The Cost of Living Crisis, we learned that the vast majority have discussed the prices of either utilities (85%), food (76%) or petrol (61%) with their staff in the last six months. In an effort to try and support employees with these strains, 70% of businesses said that they have increased wages, and nearly half are now offering mental health support. This acts as yet another reminder of the civic and social commitments exhibited by our employer communities.
“All in all, this latest QES highlights positivity in some areas, and persisting concerns in others. As Chambers, we will of course be advocating for any measures that might help to restore business confidence — whether that’s a rethinking of business rates or the campaign to save Doncaster Sheffield Airport. We have also been working closely with employers, training providers and other key stakeholders on a Local Skills Improvement Plan for the region, which will help address those recruitment difficulties that so many firms are encountering right now.”
