Trading Standards Birmingham

Birmingham and Its Business Industry

Birmingham, like the majority of towns and cities in the UK, has seen major industrial changes during the last three/four decades, with numerous companies, both large and small, opening and closing their gates for the last time.

It has also suffered considerably in the current economic recession as the economy shrank for a record sixth quarter in a row, with unemployment in the city now standing at some 8.1% of the working population. The unemployment figure in April 2008 stood at 5.2% and in September 2008 at 5.7%. The current seasonally adjusted claimant rate, however, now stands at some 12.8%.

Business output has also been in decline, with the latest third quarter fall figure at 0.4% taking the total output loss to some 5.9% since the current recession began. Not only have businesses suffered from a downturn in orders, but major stores, shops, hotels and restaurants have also been affected, with people cutting back heavily on weekly luxuries etc. Whilst new car sales were also in steep decline the government’s scrapage scheme has given the majority of dealers a breathing space and some leeway for the future. Major supermarkets have also experienced a decline in sales as more and more of the population venture into and return to supermarkets offering the more discounted brands of foods. Shoppers, currently, are more prepared to shop around in order to save on their weekly shopping outlay.

However, on the better news front, latest surveys have suggested that the economic output is no longer in decline but there appears to be no immediate signs of any growth patterns emerging.

Access to finance still remains a problem area for both small and medium size companies, despite the extra £200 billion pounds which have been fed into the UK financial system. Recent surveys have indicated that at least a third of the companies questioned have found it harder to obtain monetary support in the last quarter.

With a majority of the younger generation, be they employed or otherwise, still prepared to have a normal Friday and weekend fun time; the majority of clubs and pubs appear to have ridden the recession more favourably.

There has been a major change in business direction in Birmingham, originally known as the “City of a Thousand Trades,” with both large and small engineering firms fast disappearing and its last remaining car company, Jaguar Land Rover (JLR), gearing up to close one of its last two remaining assembly plants. Such failing businesses have and are being gradually replaced by the various service type companies, driven by the expansion of the professional and financial services sector, plus the outside visitor economy from within the British Isles and those travelling from abroad.

Birmingham seems to be in the frontline as the most popular area for business service firms, largely because of its central location and easy access links by road, rail and air. It also has a major advantage over the likes of London with more affordable and quality office space, the easy availability of the professionally qualified employees and also, an important factor for car users in their travels to work, more than adequate car parking facilities. The NEC, with all its events be they business or community also plays a large part in bringing outside visitors to the city. The city also has many places of interests and attractions on offer, the majority of which can be found on Activ Birmingham’s Home Pages.

Also with three universities on its doorstep and the continuing annual influx of university students wishing to remain here, Birmingham business should never be short of the professionally qualified person seeking future employment in the area, if initially it may only be for an experience gaining period.

One area that Birmingham, with its change of employment direction, may struggle with is employment for individuals with little or if any qualifications, as the work these people would normally be employed to carry out will become even less as time goes on. There will soon be a serious need for extended type schooling and/or college placement for hands on employment training best offered by Colleges of Further Education. The type of employment being mainly associated with the construction type industries, for example – gas fitters, electricians, plumbers, bricklayers, plasterers, window and kitchen installers etc.

This forthcoming problem needs to be drawn to the attention of all those who it is felt will struggle to meet an acceptable education standard, as soon as such a probability is first noticed; otherwise their futures in employment in the area of Birmingham look to be very bleak to say the least. Job Centres, who probably deal with less than half of all available vacancies, most of which are for the less skilled trades will experience even greater difficulty in future years , in the placement of unqualified personnel of all age groups.

Businesses need to continue to be positive and prepared for the eventual economic improvement. With the euro zone countries now moving out of recession there appears, at last, to be light at the end of the tunnel.

With more and more businesses and households now daily being connected to the internet and with a Government requirement for an internet connection being made available, if required, to virtually every household in the country, the days of expensive business media advertising will be in decline and instead of a daily advertising cost, businesses can and will advertise their wears annually on the internet at similar prices, or slightly more, if featured or sponsored advertising on the various web site home pages is required.

The advantages of internet advertising on the home page of sites, is that it will be seen by visitors from all over the world, which can obviously run into many thousands monthly. Advertising in free papers and national or local daily papers, as indicated above, is expensive and provides no guarantee that they will in fact be seen by the large majority of readers.

All businesses are advised to look carefully at internet advertising, as it will certainly play a big part in future. Businesses also need to be fully aware that home page advertising, especially on the heavily visited sites will be fairly limited as advertising space will be at a premium. Future internet advertising will, without doubt, become the business norm and all prime site spaces will, obviously, be offered on a first come first served basis, Birmingham businesses, you have been warned.

About the Author

Activ Birmingham is your complete online guide to Birmingham and the surrounding area. To find out more about how Activ Birmingham can help promote your local business go to our website:
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