Commerce in South Yorkshire continues to display weakest performance since lockdown

South Yorkshire’s Chambers of Commerce released their final 2022 Quarterly Economic Survey last week which highlighted a continued struggle to grow economic activity in the region.

The balance of firms in the region reporting an increase in orders was negative at minus three per cent for the second quarter in a row.

This figure had previously not dipped into the negative since the Covid-19 lockdown in 2020.

Another key issue for firms is recruiting staff post-Brexit.

Ninety per cent of firms have experienced difficulties trying to hire people that matched their criteria in the last three months.

The main issue however appears to be the region’s infrastructure creating issues for businesses’ operations.

Respondents most commonly experienced issues as a result of the road network (53 per cent) followed by the rail network (33 per cent).

Other issues cited included travel costs, increased costs of products and loss of business opportunities.

The CEOs of Doncaster, Barnsley and Rotherham and Sheffield Chambers said in a joint statement:

“This has been another challenging quarter for the UK economy. Our survey captures the reality of this in South Yorkshire. As in other regions, most of the indicators are not pointing in the direction we would like, and there seems to be no let-up in the post-pandemic, post-Brexit recruitment challenges facing our firms. Many of our businesses are finding it tough.

“There are some reasons for cautious optimism. Though significantly weaker than a year ago, there are tentative signs that business confidence in the future is beginning to level out after falling for most of the past year.

“As Chambers, we will continue to advocate for more support from government policy where it’s necessary – for instance in maintaining support on energy bills beyond the current package for those who need it most.

“And we are focused on growing the long-term potential of our economy. In the coming months we will be working intensively with employers, colleges, and other partner organisations on an ambitious Local Skills Improvement Plan, so our economy gets the skills it needs.

“We’ll also be working with chambers across northern England to campaign for infrastructure funding that matches our economic potential. We need to escape the ‘levelling-down’ cycle of infrastructure promises to the north that are followed by scaled back or abandoned projects.

“The last quarter saw the closure of Doncaster Sheffield Airport and ongoing disruption to transport services across northern England. So it’s no surprise that businesses believe that South Yorkshire’s rail and airport infrastructure do not meet their needs, or that the majority favour the compulsory purchase of DSA by the authorities to reopen it.

“But it’s important to remember the importance of other infrastructure too: for the largest number of businesses improving road and digital connectivity are the highest priorities for investment.”

The survey found that 68 per cent of respondents favoured a Compulsory Purchase Order of Doncaster Sheffield Airport to allow it to reopen.