Chamber of Commerce: Businesses Facing ‘Toughest Conditions for Years’

The Chamber of Commerce says that businesses are facing the toughest trading conditions in years.

Its latest survey of local businesses highlights concern around rising costs, with labour costs and electricity price rises being its two major worries.

Isle of Man Chamber of Commerce carries out quarterly economic surveys to gather information direct from businesses, and uses that data to make sure their voices are heard, says the chamber. Survey data is shared with Chamber members, media outlets, and Isle of Man Government.

Approximately 65 businesses took part in the latest research for Q1 2023. In addition to answering specific questions, respondents were also asked to comment on their major concerns. Inflation and rising costs (especially energy and other utilities) were once again to the fore, as they have been in other recent Chamber surveys.

However, in the latest study those fears appear to have intensified, says Chamber chief executive Rebecca George.

She said: ‘Results from the Q1 survey show that there has been a significant shift regarding the immediate future due to heightened fears about rising operating costs. It’s clear that businesses in many sectors are facing the toughest trading conditions they have experienced for many years.’

Other headlines from the Q1 2023 survey include:

• Rising labour and utilities costs are a widespread concern
• A third of respondents don’t believe they will be able to absorb cost increases into their prices
• Concern remains very high with regards to energy costs, in particular when looking ahead to when the electricity cap is lifted on March 31^st
• The majority of respondents believe affordability and availability of housing is becoming a barrier to employee recruitment and retention
• Business confidence and profitability have both remained static compared to feedback in the Q4 2022 survey
• Over half of respondents’ businesses have staff vacancies

The quarterly economic surveys include core questions received from the British Chambers of Commerce (BCC) that are fed into national BCC research.

A graphic comparing data from Isle of Man Chamber of Commerce’s Q3 2022 and Q1 2023 Quarterly Economic Surveys which show that inflation remains a major concern for businesses