Like many in Newport I share the concern about the threat to jobs at the Avana Bakery in the city.

With the factory losing its major contract with Marks & Spencer many of the 650 jobs there are now at threat.

Anyone who is familiar with Newport knows what a long-standing and important employer the bakery is.

Although it is a larger business than we represent at the FSB, the loss of so many jobs would have a serious impact upon many smaller firms - both those who are involved in supply chains and those who have businesses relying on the spending of the bakery workers.

My foremost thoughts are very much with all those who are concerned about their jobs at Avana, and their families. But it is important to consider what lessons we can learn from this.

Clearly it is not the best idea to have too much of your business tied up in a single contract, especially as there is such competition among firms supplying the major grocery chains.

It is something that firms of all sizes should bear in mind when they consider the sustainability of their business over the longer term.

It is also important to consider how soon it was that local elected representatives learned about the potential loss of such an important contract, and how quickly contact was made with the company to discuss what assistance could be offered.

No business exists in a vacuum. For every larger business there is a whole eco-system of other businesses, supplying everything from raw materials such as boxes and flour to services such as cleaning, security and logistics.

The loss of a large business can have a significant impact on the entire local economy, and in Newport’s case that is a local economy already facing significant challenges. Let us hope that new contracts are agreed, because job losses at Avana would be job losses that Newport can ill-afford.