Firms need clear guidance to adapt

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Tuesday, 14 July 2020 23:25

By Carmelo Garcia - Local Democracy Reporter

Local businesses need clear guidance from Government to adapt quickly to changes as the lockdown is eased, according to industry leaders.

Herefordshire and Worcestershire Chamber of Commerce chief executive Sharon Smith says cash flow, lack of sales, finance and the impact of furlough ending are among the key concerns facing local businesses in the next three to six months.

She said the first challenges for businesses at the start of the coronavirus pandemic were survival and adaptation.

“From the thousands of conversations, we had with businesses, lack of sales and orders was identified as the number one challenge, followed closely by this severely affecting cashflow,” she said.

“Unfortunately, some businesses have had no choice but to temporarily close, with 24% of businesses reporting this course of action to us. This action has been more prevalent in the tourism/hospitality sector but has impacted other sectors too.

“Micro businesses are also much more likely to have temporarily closed, and this could present a challenge for Herefordshire, as 90% of the businesses demographic fits this criteria.”

She says companies are becoming more resilient by looking at new products and routes to market, building back competitive advantage, looking at productivity gains and growth strategies.

“However, central to recovery will also be the government continuing to develop ‘bold’ policy ideas for productivity, innovation and investment, promoting confidence in the economy,” she added.

“Business need sight of future plans and clear guidance for what is expected from them.

“They also need sufficient time to put plans in place and to adapt quickly, particularly in response to local lockdowns or actions arising from test and trace activities.”

She said the chamber of commerce has developed new services to support its members during the pandemic.