Business

Welsh business confidence soars despite February’s output decline

Published

8 months ago

March 8, 2024

WELSH business confidence has surged to its highest level since November 2021, despite facing output challenges in February. This optimism in the private sector shines against a backdrop of modest economic contraction, according to the latest NatWest Wales PMI® Business Activity Index. The index, which dipped from 49.9 in January to 47.5 in February, highlights a modest reduction in activity – marking the most significant decrease since the previous October. Notably, this places Welsh firms alongside those in the North East as the joint-lowest performers in the UK, primarily attributed to subdued customer demand and ongoing supply chain difficulties.

Despite a continuous ninth-month decline in new orders, February saw the slowest pace of this downturn, with some businesses noting early signs of recovering demand conditions. However, the enduring cost-of-living crisis continues to suppress sales, creating a fractional downturn in new business that contrasts with a modest expansion across the UK.

Remarkably, February witnessed a significant uplift in business confidence among Welsh private sector companies. This renewed optimism, the most robust since late 2021, aligns closely with the broader UK trend. Businesses are buoyed by prospects of product range extensions, customer base expansions, and anticipated stronger client demand.

However, Welsh firms reported a seventh consecutive month of workforce reductions, although the rate of job losses has slowed considerably, marking the softest drop since August 2023. Despite efforts to enhance efficiency and manage costs by not replacing voluntary leavers, the reduction in staff numbers remains significant, outpaced only by Yorkshire & Humber across the UK.

Furthermore, Welsh companies have seen an ongoing decrease in outstanding business since May 2022, with February’s contraction marking one of the sharpest declines. This reduction in backlogs of work underscores the broader challenges faced by the region’s private sector.

On the inflation front, Welsh firms experienced an accelerated increase in average cost burdens during February, with input prices climbing due to higher raw material costs and rising wages. This upturn in inflation, although less severe than the UK average, was the sharpest since May 2023. In response, Welsh companies raised their selling prices significantly, with service providers leading this charge as they passed increased costs onto customers.

Jessica Shipman, Chair of the NatWest Cymru Regional Board, reflects on the dual nature of the current economic landscape for Welsh businesses. While acknowledging the sharper fall in output and the weight of supply chain issues on production capacity, Shipman highlights the fractional easing in the decline of new business and the buoyant business confidence. This optimism is underpinned by strategic expansions and marketing investments, despite the uptick in inflationary pressures driven by higher wage and imported goods prices. Shipman notes the continued trend of cost-cutting through workforce reductions, even as business confidence strengthens and the pace of job shedding eases, signalling a cautious yet hopeful outlook for the Welsh private sector.

Business

Thousands of homes in rural Wales gain from faster 4G boost

Published

4 hours ago

November 14, 2024

Tom Sinclair

RURAL Wales is seeing a major upgrade in mobile connectivity, with faster 4G now live in several areas. Seven locations across North, South West, and West Wales are benefitting from new 4G mast upgrades funded by the UK Government’s Shared Rural Network (SRN), aimed at closing the digital gap between rural and urban areas.

The upgrades, which went live on Thursday (Nov 14), bring improved 4G coverage to communities including Bontddu, Llanelltyd, Llanarmon Dyffryn Ceiriog, Penmaenpool, Tabor, Snowdonia National Park, and Bontgoch. Local businesses, emergency services, and residents are expected to benefit from faster internet access, which supports daily communication, business opportunities, and economic growth.

***There is a £170 million agreement with Openreach to provide gigabit-capable broadband to 70,000 remote Welsh properties***

Technology Secretary Peter Kyle said: “Fast, reliable connectivity is essential for modern life and should be available from Cardiff to the remotest parts of Wales. Today’s upgrades bring us closer to making this a reality.”

SUPPORTING DIGITAL INCLUSION

As part of the rollout, Peter Kyle and Telecoms Minister Sir Chris Bryant visited Ebbw Vale to discuss digital inclusion with charity and industry leaders. They met with representatives at BGfm, a digital inclusion hub in Blaenau Gwent, to learn about how connectivity impacts daily life in Welsh communities.

Telecoms Minister Bryant said: “We are working tirelessly to make sure rural communities aren’t left behind online.

“These upgrades mean businesses can now operate without connectivity limitations, 999 services are better equipped to respond, and residents and tourists can stay connected across the Welsh countryside.”

ADDRESSING CONNECTIVITY GAPS

An estimated 1.5 million homes across the UK remain without internet access, limiting people’s ability to access essential services such as banking and healthcare. In addition to the SRN upgrades, the Chancellor has allocated over £500 million in next year’s budget for digital infrastructure expansion, targeting these underserved areas.

Welsh Secretary Jo Stevens highlighted the importance of this investment, particularly for rural Wales, where fast, reliable internet can be transformative.

“Connectivity is critical for day-to-day life in rural areas – from supporting local businesses to ensuring emergency services are just a call away,” Stevens said.

The upgraded masts, previously limited to EE customers and emergency 999 calls, now serve a wider user base, bringing essential internet access to more people without requiring new infrastructure.

Ben Roome, CEO of Digital Mobile Spectrum Limited, said: “With the activation of five new SRN sites, Wales is seeing the tangible benefits of the Shared Rural Network, bringing crucial connectivity to rural communities.”

GOVERNMENT INVESTMENT IN REMOTE WALES

The improvements come alongside a £170 million agreement with Openreach to provide gigabit-capable broadband to 70,000 remote Welsh properties, helping future-proof digital access in even the most isolated locations.

The latest upgrades mark another step in the Government’s mission to improve mobile coverage and close the connectivity gap across Wales, creating opportunities and supporting economic growth across rural communities.

Business

Pembrokeshire Coast National Park Authority invites businesses to advertise in mag

Published

8 hours ago

November 14, 2024

Tom Sinclair

As 2024 comes to a close, Pembrokeshire Coast National Park Authority is encouraging local businesses to prepare for the year ahead by reserving advertising space in Coast to Coast, Pembrokeshire’s highly regarded, award-winning visitor magazine.

Launching its 43rd edition in Easter 2025, Coast to Coast provides a prime opportunity for businesses to reach a wide audience, with a readership exceeding one million people.

The bilingual publication, distributed across Pembrokeshire’s busiest locations and parts of Carmarthenshire and Ceredigion during peak tourism months, is a valuable resource for both visitors and residents. From unique products and delicious offerings to exciting experiences, businesses of all types can benefit from the exposure Coast to Coast offers. The magazine is available in hundreds of outlets countywide and has become an essential guide for anyone looking to explore the best of Pembrokeshire.

“Over the years, Coast to Coast has established itself as the must-have summer guide, packed with inspiration for exploring the Park,” said Marie Parkin, Head of Marketing and Communications for the Authority. “In addition to showcasing our visitor attractions such as Carew Castle and Tidal Mill, Castell Henllys Iron Age Village and Oriel y Parc, National Park Discovery Centre, the magazine includes practical information like maps, bus schedules and tide tables.”

“From scenic walks and beach days to rich insights into the Park’s heritage, culture, and wildlife, Coast to Coast offers something for everyone. Our Activities and Events listings ensure families can enjoy a full calendar of experiences,” Marie Parkin added.

With advertising deadlines set for early January 2025, businesses are encouraged to act swiftly to secure their spot and avoid disappointment.

For more information about advertising in Coast to Coast, please contact [email protected] or call 01646 624895.

Business

Kurtz addresses Employment and Skills Convention

Published

20 hours ago

November 13, 2024

Richard Lewis

SENEDD Member Samuel Kurtz kicked off an Employment and Skills Convention at the Cardiff City Stadium recently, organised by the Learning and Skills Institute. The event sought to unite organisations, businesses, and training providers to discuss critical issues surrounding employment and skills development across Wales.

The convention featured a panel of distinguished speakers, including local Samuel Kurtz MS, who is the Shadow Minister for the Economy and Energy; Rhys Morris, Managing Director of The Busy Group; and Megan Hooper, Director for Employment and Skills at Serco. Together, they explored strategies for increasing employment and the positive impacts this can have on individuals, young people, and the broader community.

Following the event, Samuel Kurtz said: “It was a privilege to speak at this convention and to underscore the vital role of collaboration between government and the private sector in aligning skills and training with the evolving needs of our economy.

“By enhancing skills and creating jobs, we can foster a resilient workforce that will not only meet today’s demands but also drive essential green infrastructure projects, ensuring a prosperous future for young people in Wales.

“Welsh Government Ministers must acknowledge their role in addressing high levels of economic inactivity. Introducing employment targets is essential to support people in re-entering the workforce and contributing to Wales’ economic growth.”