City's exports 'slow' after JLR attack and tariffs

Jaguar Land Rover's supply chain companies say they face up to six months of credit difficulties

The impact of the Jaguar Land Rover (JLR) cyber-attack and US President Donald Trump's tariffs in recent months has led to a slowdown in global trade activity among Birmingham businesses, a report says.

Greater Birmingham Chambers of Commerce stated the latest quarter was challenging for exporters, particularly in manufacturing, where a third of businesses recorded a decline in sales and the share of companies reporting growth fell from 39% to 17%.

The number of businesses reporting advanced bookings had also dropped, but service exports grew by 4%.

Domestic activity remained broadly similar to the previous quarter, the chambers said.

While 57% of companies anticipated constancy in the price of their goods and services over the coming months, labour costs continued to squeeze local businesses, they added.

The chambers stated 33% said labour costs were their biggest cost pressure – "exacerbated by the increase in employer National Insurance Contributions announced in the 2024 Autumn Budget".

Many companies also reported they had absorbed those additional costs, rather than passing them on to the consumer, said the organisation, whose Quarterly Business Report was sponsored by Birmingham City University.

The chambers' acting deputy chief executive officer, Raj Kandola, said while price pressures had fallen from the peak seen earlier in the year, recruitment challenges "remain apparent".

He stated: "Domestic activity remained broadly similar to the previous quarter, whilst export activity continues to slow as the fallout from the Trump tariffs and JLR's cyber-security attack continues to dent international sales."

Mr Kandola added profitability projections "remain firmly anchored in positive territory".

JLR's supply chain companies have previously said they faced up to six months of credit difficulties after the cyber-attack on the car company in August.