Cairngorms

Tracking business performance and confidence in the Cairngorms and Moray & Speyside

Over the last year we’ve been working with Cairngorms Business Partnership to undertake their Cairngorms Business Barometer, a quarterly survey of businesses operating in the Cairngorms National Park tracking a range of areas including numbers of customers, levels of turnover and expectations for the future. In late 2021 we were delighted to be commissioned by Visit Moray Speyside to work with them to launch a similar survey - the Moray Speyside Business Barometer - in their area with the first wave of this new survey completed last month.

Both surveys involve the quarterly completion of a short online questionnaire amongst a sample of businesses, providing details on levels of business during the last 3 months, expectations for the future, general levels of business confidence and the impact of a range of ‘barriers’ on levels of business. The survey approach also allows for the inclusion of a set of ‘hot topic’ questions on a subject of particular interest at that point.

Reflecting the nature of the economy in both areas, while participating businesses are largely involved in the tourism industry, the types of businesses participating is wide ranging, including accommodation providers, retailers, hospitality businesses and food and drink manufacturers. In return for participating, businesses receive rapid access to the survey reports and a personalised summary of the results comparing their own performance and outlook with the averages for businesses across their area.

We published the 2022 Quarter 1 results from both of the Barometers this week, reporting on how businesses in each area had performed during the first three months of the year and their expectations for the rest of 2022 and beyond.

In both surveys the results provided a fairly mixed picture. With the relaxation of Covid restrictions and international tourism markets starting to return, business levels have certainly improved for most in comparison to the same time last year. And in both surveys most businesses indicated that they expect increased levels of business this year and levels of confidence for the short (3 months), medium (12 months) and longer term (24 months) are all slightly above the averages normally seen for this time of year, even pre-pandemic.

However this post pandemic optimism is tempered by growing operational concerns over rising supplier and energy costs, with many businesses already experiencing significantly increased costs and nearly all anticipating hikes during the next 12 months. Staffing concerns are also continuing to present a significant challenge for some businesses as a combination of factors mean that many struggle to fill vacant positions.

Click on the links below if you’d like to find out more about the Cairngorms Business Barometer or Moray Speyside Barometer (or to find out how to take part if you are a business based in either area!) or get in touch with us if you’d like to hear more about the surveys or opportunities to  establish up a Business Barometer in your region.

https://www.cairngormschamber.com

https://morayspeyside.com/barometer/

Helping address the housing crisis in Badenoch and Strathspey

Introduction

Recently, 56 Degree Insight have been working with local organisations and Chambers of Commerce in various parts of Scotland to understand the scale of the housing shortage in some parts of the country which is limiting economic sustainability and growth in these areas. Work undertaken in the first area covered - Badenoch and Strathspey - has just been completed, and a Housing Summit took place in Aviemore today and the press release reproduced below from Cairngorm Business Partnership provides further details and the response from the Scottish Government Ministers involved:

Kate Forbes, Highland MSP and Cabinet Secretary for Housing address Cairngorms housing Summit

Business leaders, public sector and community representatives came together today to discuss the housing crisis in Badenoch & Strathspey with Kate Forbes, Highland MSP who is also Cabinet Secretary for Finance and Economy and Shona Robison, MSP, Cabinet Secretary for Social Justice, Housing and Local Government.

The summit at Macdonald Aviemore Resort and led by the Cairngorms Business Partnership brought together some of the significant employers in the area and leaders from Highland Council, Cairngorms National Park Authority, Highland Housing Alliance, Communities Housing Trust, Government Officials, Highlands and Islands Enterprise and representatives of the local community.

The summit discussed work underway to help people, who want to live in, work in and care for the area, find homes.

Ms Robison, who opened the summit, commented “Good quality, affordable housing is essential to help attract and retain people in Scotland’s remote and rural communities. As part of our £3.4 billion Affordable Housing Supply Programme we have delivered more than 6,000 affordable homes in rural and island communities between 2016-17 and 2020/21.

Building on this, we are now working to deliver 110,000 affordable homes across Scotland by 2032, of which 10% will be in our remote, rural and island communities. This will be backed by a Remote, Rural & Islands Housing Action Plan – we now want to engage with community organisations and those in the public and private sector to ensure it delivers for people in these areas.”

The results of a recent business housing demand survey, conducted by 56 Degree insight, were released at the summit. The results found that:

  • two in three businesses state the lack of affordable housing has inhibited their ability to recruit new staff (68%)

  • 39% indicated that this was having a ‘major impact’ on their business.

  • over half of the businesses (59%) expected the issues to worsen if no action was taken.

  • the meeting heard that, right now, there are 180 vacancies in Badenoch and Strathspey listed on the Indeed website alone. Survey results suggest that around 50 of these will not be filled due to a shortage of suitable homes.

The survey was commissioned by Highland Council and the Cairngorms Business Partnership. The Scottish Government, the National Park Authority and the Highland Council have undertaken to take the results into account when assessing housing needs analysis for Badenoch and Strathspey and therefore funding and allocations for public sector supported housing.

The summit also discussed an innovative scheme being led by the Cairngorms Business Partnership (CBP) to improve the prospects for local employees looking to rent homes in Badenoch and Strathspey. In a pilot partnership with Highland Council and the Highland Housing Alliance (HHA,) with support from Highlands and Islands Enterprise, the CBP will establish a not for profit, business led, organisation that will offer rent void guarantees to HHA and in return properties will be allocated based on local employment needs. The initial pilot for 4 homes in Aviemore is expected to be available for occupation in summer 2022.

Commenting on the scheme, Mark Tate, chief executive of the Cairngorms Business Partnership, commented “The lack of affordable homes for people who want to work in, live in and care for the National Park, has long been a problem. This past summer it has severely impacted business recovery. This pilot clearly demonstrates that businesses are prepared to make a contribution to help alleviate the problem and ensure new mid market rent housing is available for people working locally. We very much see all of the work we are discussing here today as work that we can replicate across the National Park and can be useful for many rural communities beyond that”.

Convener of Highland Council, local councillor and Aviemore resident, Bill Lobban added “The biggest issue facing our community is the provision of affordable housing. Our economy is almost exclusively tourism based so we do need accommodation for tourists but we also desperately need homes for the local people who live and work here many of whom serve the tourists who come here in their droves. There has to be a balance and currently that balance has shifted far too far away from the provision of affordable housing and we must redress that balance as a matter of urgency.”

Finally the summit heard, from the Communities Housing Trust who have been commissioned by the CBP with support from HIE, about a longer term ambition to develop a community of around 80 homes from short term seasonal worker accommodation to homes for people to build, buy, buy to rent and rent of varying sizes built around a community of local people; fitting for a National Park delivering economic, community and environmental sustainability. This scheme has the ambition of keeping at least 80% of those homes for local employees and people who want to live, work and care for the area in perpetuity.

There then followed a positive discussion about how these schemes can be improved further and a commitment from all parties to build on these solutions in a way that allows them to be scaled and replicated across the National Park and further.

Xander McDade, Convener of the Cairngorms National Park Authority, said: “The availability of affordable housing is an issue of profound importance to the communities and businesses of the National Park, something which is again coming across loud and clear from our consultation on the next Park Partnership Plan. Having recently increased the affordable housing requirement to 45% in key settlements, we welcome today’s announcements and look forward to working with partners on substantially increasing affordable housing as set out in the draft National Park Partnership Plan.”

Closing the meeting Ms Forbes commented “I am delighted that the Housing Minister, Shona Robison, is spending time with businesses to seek to resolve this major issue.There are tools at our disposal, in terms of building and securing more housing, but we need to make sure it is the right kind of housing for those who are most in need.”

Understanding how housing challenges in the Highlands are impacting rural businesses

There’s been a great deal of news coverage recently regarding the significant challenges facing businesses across the UK when it comes to the recruitment and retention of staff. Businesses in a whole range of sectors are facing a ‘perfect storm’ of factors including reduced access to labour following our departure from the European Union and changing patterns of demand caused by Covid 19.

However, in addition to these challenges, As reported in our blog on 3rd August, the April to June 2021 Cairngorms Business Barometer found that many business based in this area were also experiencing recruitment and retention challenges because of a lack of housing for their employees to live in.

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Our survey and anecdotal evidence gained from conversations with businesses suggests that with increasing house prices (partly driven by the number of houses becoming second homes or holiday accommodation), this issue is becoming increasingly urgent for employers in many parts of rural Scotland, affecting a wide range of sectors from tourism businesses to food and drink producers.

Indeed, it is feared that this issue could significantly constrain the potential growth of many businesses in areas such as the Cairngorms or even threaten the survival of some.

To better understand this issue we were commissioned last month by Cairngorms Business Partnership to undertake new research to understand the scale of the issue amongst business in the Badenoch and Strathspey area and we are delighted to announce that we have also just been commissioned to undertake a similar study in Lochaber on behalf of Lochaber Chamber of Commerce.

In both areas we will soon be launching surveys of businesses which will collect evidence to ensure we can determine the scale of the issue currently, details of the sectors, skills and roles most affected plus an understanding of how the issues is impacting businesses.

By collecting this evidence we hope that these studies will play a key role in future decisions on housing provision in the Highlands, helping business to survive and grow sustainably.

If you’d like to find out more about these studies or how we can support your with your research needs – including surveys of businesses get in touch.

Cairngorms Business Barometer goes LIVE!

This week we were delighted to complete our first wave of the Cairngorms Business Barometer – a quarterly survey of businesses located in the Cairngorms National Park which we have been commissioned to undertaken by Cairngorms Business Partnership (CBP). The survey provides CBP, their partners and the businesses that take part with information on business performance, confidence and barriers to growth. Particularly vital insights at this critical time.

Just over 100 businesses took part and the key results from the Quarter 2 survey have received coverage in the local press. As described in the article, we found that business confidence for the summer months is now higher than at any stage since before the pandemic. However, businesses told us that a number of barriers continue to restrain growth – most notably the burdens of bureaucracy and rising administration costs. Also for some businesses a shortage of local, affordable housing is making it difficult for them to recruit and retain staff.

We look forward to continuing to work with CBP on future waves of the Barometer: get in touch if you’d like to find out more about the approach or if you are a business based in the Cairngorms and would like to take part in the next wave.