The Chamber works closely with businesses across all sizes and sectors to ensure that business views are represented to key local and national decision makers. To ensure every sector is represented the Chamber hosts two Area Councils, one in Worcestershire and one in Herefordshire. Each Area Council consists of 15 specialists from different sectors who meet six times a year to provide feedback from their respective professions. The feedback is then used to inform our economic reports and shape the policy activity we deliver to Member businesses. The Area Councils form a key part of our governance structure and have links to the Chamber Board. If you want to find out more about your sector representative or get in touch to ensure your views are shared by your rep at the next meeting, click here. Below is a summary of key sector updates from the latest Area Council meeting.
Manufacturing
Overall, the manufacturing sector has been severely affected by Covid-19. Some manufacturers experienced a complete loss of sales in the early stages of lockdown whereas others kept production open to fulfil orders, albeit at a reduced level. As some suppliers made the decision to close when lockdown was introduced, others who stayed open have had to adjust their supply chain. Those supplying to industries who have been more negatively impacted by Covid-19, for example, construction, aerospace and automotive, are likely to have been more negatively impacted themselves.
To ensure staff are safe, manufacturers have implemented a range of new working practices, such as staggering lunch breaks, regularly wiping down surfaces and observing social distancing.
Going forward it is unclear whether there will be an immediate bounce back to demand or a more gradual one. Manufacturers who have experienced a big upswing in their June sales are wondering how long sales will be sustained for. Generally, larger manufacturers are intending to carry on with their investment plans with smaller and medium firms putting their plans on hold until September when things may look more certain.
Transport and Logistics
Impacts of Covid-19 on the transport sector have been varied, depending on the customer base served. Those servicing the food and drink markets have done well as demand has risen. Elsewhere, at the height of lockdown in April there was a large decrease in sales and many staff were furloughed. Sales improved in May and continued to do so into June allowing businesses to bring back some of those who had been furloughed. The government announcement that from July 1 the Job Retention Scheme could be used more flexibly will allow more staff to return on a part time basis as demand continues to recover.
Education
Colleges quickly adapted to full or partial closure as lockdown was introduced. The crisis has provided an opportunity for innovation and learners have been progressing with their studies at home. Next academic year is going to prove extremely challenging. It’s difficult to predict whether the demand for post-16 education will be there. Also, more practical based programmes are impossible to deliver while students are at home. Large changes to operations are going to be needed to ensure staff and student safety going forward.
Science and Medical
Generally, the science and medical market has been strong with new opportunities such as supplying to pharmaceutical companies who are working on vaccine development. PPE was difficult to source in the early stages of lockdown as supplies went to the NHS and when it could be sourced it was more expensive. Other specialised equipment has been difficult to source with continued disruptions to supply chains and only a few suppliers who are able to fulfil orders.