Britain’s manufacturers are more positive about the growth outlook as they enter 2022, with greater confidence in the prospects for their own companies than either the global or UK economies, according to a major survey published by Make UK and PwC.
The 2022 Make UK/PwC Senior Executive survey shows the scale of uncertainty facing business in the current turbulent global environment, with more than half of companies saying the biggest challenges facing them had changed in the last twelve months. Their optimism is also tempered by escalating inflationary pressures and access to, as well as retaining, talent and key skills which are by far the biggest issues companies are having to address.
In the face of these challenges, however, the majority of manufacturers have weathered the storm of the last couple of years with almost three quarters of companies (73%) now believing conditions for the sector will improve in 2022, with a similar number (73%) believing the opportunities for their business outweigh the risks. To date, the sector appears to have seen little or no disruption from the latest Omicron variant to alter this confidence.
Furthermore, almost two thirds (63%) of companies felt the UK to be a competitive location for manufacturing with just 13% believing it to be an uncompetitive place to do business.
To take advantage of these opportunities manufacturers are prioritising improving productivity, investment in their people as well as new product development, while the recent COP 26 summit appears to have accelerated investments in the drive to ‘net zero’.
However, one year on from leaving the EU, two thirds of companies said that leaving had moderately or significantly hampered their business, with over a half of companies (56%) fearing a further impact this year from customs delays due to import checks and changes in product labelling.
Make UK Chief Executive, Stephen Phipson, said: “It’s testament to the strength of manufacturers that they have emerged from the turbulence of the last couple of years in such a relatively strong position. While clouds remain on the horizon in the form of rapidly escalating costs and access to key skills, the outlook is more positive for those that remain adaptable, agile and innovative.
“To build on this we now need to see a Government fully committed to supporting the sector at home and overseas. This requires more than a Plan for Growth but a broader industrial strategy that sets out a long term vision for the economy and how we are going to achieve consistent economic growth across the whole country.”
Cara Haffey, PwC’s UK industrial manufacturing and automotive leader, said: “Despite facing an unprecedented combination of continued Covid pressures, cost inflation and supply chain issues, our manufacturers are responding with an impressive amount of agility and resilience, which will stand them in good stead for the year ahead.
“They have learned valuable lessons about their supply chain vulnerabilities and the resilience needed to respond to unforeseen international or domestic risks, and are strengthening their businesses digitally as well as continuing to focus on talent and skills.
“We are particularly pleased by the breadth of net zero ambitions reflected in the report. Across the UK we’re seeing an increasing number of businesses underpin their environmental, social and governance strategies with practical applications to decarbonise their operations and ambitions to build out their green skill base through the recruitment of ‘green’ jobs, a move that has already been flagged as outperforming the UK sector average in our recent Green Jobs Barometer.”
The more positive outlook for growth is reflected across all major markets with 40% of companies forecasting growth in exports to the United States, closely followed by the EU. Around a quarter (26%) are looking for growth in Asia and around one in five to the Middle East (21%). However, the EU market is set to see the biggest decrease in exports by 10% of companies.
The survey also provides encouraging indicators on the strategies manufacturers are adopting to build resilience and agility into their business by looking at their supply chain, investing in people, innovation and green technologies.
Up-skilling or retaining existing staff was the biggest priority for around two thirds of companies (67%) followed by new product development (60%) and capital equipment (54%), while almost four in five companies (78%) envisage a significant or moderate increase in their productivity this year.
Skills and talent also dominated the risk factors companies were facing with access to Labour seen as the biggest risk by almost two thirds of companies (58%), while almost nine in ten companies were not just worried about losing skills from their business but, the sector entirely. Encouragingly, despite the current financial challenges almost half (45%) of companies said they still planned to invest in Apprenticeships in 2022.
The need to build resilience into business models has been highlighted by supply chain shortages and the survey shows around a third of companies (35%) are planning to counter this by using British rather than international suppliers, while almost a third (31%) said they were planning to re-locate some or, more of, their production back to the UK.
The survey also shows the increasing drive towards ‘net zero’ for manufacturers. Half of companies (49%) said they plan to invest in green technologies or energy efficiency measures in 2022, with a third saying this investment has increased. A third also said the process to transition to ‘net zero’ had been accelerated by the recent COP 26 Conference.
Make UK has forecast that manufacturing grew +6.9% in 2021 and is predicting growth in 2022 of +3.3%.
The survey of 228 companies was conducted between 27th October and 22nd November 2021.
Mansfield label producer expands footprint with acquisition
The Reflex Group Ltd (Reflex), the Mansfield-based label producer, has acquired Macfarlane Labels Ltd of Kilmarnock, and its subsidiary companies, Macfarlane Group Ireland Limited and Macfarlane Group Sweden AB from Macfarlane Group plc (Macfarlane).
Peter Atkinson, Chief Executive of Macfarlane, said: “Macfarlane Labels has been a long-standing part of the Group. We believe that its sale to Reflex, with their well-established position and scale in the labels market, creates the best opportunity for Macfarlane Labels to develop.
“The sale will allow the Group to focus resources on growing our protective packaging businesses both in the UK and Europe.”
Label printing is very much a core activity for Reflex, which also produces packaging film, provides graphic services and supplies and services printing machinery. The acquired businesses will bring sales of around £22m to add to Reflex’s current “run rate” of £135m.
All of the 109 people who presently work at Macfarlane Labels will join Reflex’s current staff of around 800.
Macfarlane Labels Limited was originally founded in 1948 as N.S Macfarlane. In 1988 it acquired Ayrshire Labels and Adhesive Labels. In 2000 it acquired Abbott Labels in Ireland and Resealit in Sweden. The business has customers throughout the globe.
Ian Kendall, Chief Executive of The Reflex Group, said: “We are delighted to have made this acquisition and we welcome our new colleagues and customers. We are aware of the heritage and importance of the business to all its stakeholders. As always Reflex will focus on sustainability, both environmental and financial, the aim being to create financial strength combined with the lowest level of environmental impact.
“With this move we expand our operational footprint into Scotland, Ireland and Sweden.”
Rolls-Royce appoints Rob Watson to Executive Team as President – Electrical
Rolls-Royce has appointed Rob Watson to the Executive Team as President – Electrical.
Rob has led Rolls-Royce Electrical since October 2017, having previously held a number of senior corporate and business roles across the group during his ten year career with the company.
This follows Rolls-Royce’s announcement, at its half year results, that from the beginning of this year it will report Rolls-Royce Electrical as a separate line item in its financial statements, alongside its three established business units and Rolls-Royce SMR.
Rolls-Royce Electrical offers aviation customers a complete electric propulsion system for their platform, whether that is an electric vertical takeoff and landing (eVTOL) or commuter aircraft. In 2021, Rolls-Royce Electrical announced partnerships with Vertical Aerospace, Eve and Tecnam and also staked the claim for the world’s fastest all-electric aircraft with the Spirit of Innovation.
Warren East, CEO, Rolls-Royce, said: “Rob has played a fundamental role in building our Rolls-Royce Electrical business, which is leading us into exciting new advanced air mobility markets as we look to create significant commercial opportunities from the transition to net zero. I would like to welcome him to the Executive Team.”
2022 Business Predictions: Luke Draper, Managing Director of IDT Limited
It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.
It has become something of a tradition, given that we’ve been doing this now for over 30 years.
Here we speak to Luke Draper, Managing Director of Ilkeston-based managed IT specialist IDT Limited.
I predict the death of the desktop in 2022. We all have had to change our business models in order to survive over the last two years, and now that flexible working is here to stay, the devices we use need to come with us.
The pandemic has affected our industry massively, proving that companies who invest in their IT and communications have not only survived, many now are reaping the benefits – and not just from a monetary point of view, but also the staff satisfaction giving people more flexibility to do their work from wherever.
We plan to continue our good work from 2021, and have ambitious growth and targets we want to hit so we are excited for the year to come. We have had a great year and have again made a substantial investment in our staff and helped businesses when others have just tried to make a quick buck.
Revenues rise while profits fall at Games Workshop
Revenue continues to rise at “confident” Games Workshop, though pre-tax profits have slipped.
According to half-yearly results for the six months to 28 November 2021, revenue grew to £191.5m, up from £186.8m in the same period of 2020.
Profit before tax at the Nottingham-headquartered business however dipped to £88.2m, from £91.6m.
Kevin Rountree, CEO of Games Workshop, said: “We are on the front foot and confident in our ability to continue to deliver our strategy. Our commitment to focus on real cash returns and return on capital continues to deliver honest and consistent returns to our owners. We will continue to try our best. In the period reported, we have delivered just that.
“We have proven once again that the Warhammer hobby creates exciting experiences and allows people around the world to come together and have some fun. We continue to focus on making the best miniatures in the world and to document and deliver an exciting operational plan.
“I’m once again immensely proud of the global teams’ performance, the ongoing support of our customers and those unsung heroes that keep us safe and well, thank you.”
80 acres of land sold at prime logistics development site in Derbyshire
Bolsover Land Limited (BLL), a joint venture between ALMCOR (formally known as iSec) and St. Francis Group, has sold over 80 acres at its 1.4 million sq ft Horizon 29 warehouse and logistics development to BentallGreenOak (BGO) and their development partner, Equation Properties for £39.9 million.
BGO and Equation will develop up to 1.2 million sq ft at Horizon 29 across the 140-acre strategic brownfield site located adjacent to Junction 29A of the M1 and Markham Vale.
Horizon 29, formerly the Coalite works, was acquired by BLL in 2012. The site has been remediated and core infrastructure constructed to allow for development to further consolidate Horizon 29 as one of the East Midlands’ premier industrial and logistics locations.
BLL retains over 33 acres for further development which will be brought forward alongside the BGO development.
Rupert Wood, head of strategic land at ALMCOR, said: “This is an excellent deal for the JV having bought the site in 2012. It will drive forward the delivery of Horizon 29 while allowing ALMCOR to release capital to recycle it into other substantial projects that we are bringing forward, such as Thames Enterprise Park in Thurrock.
“Working with our JV partner, St Francis Group, we have delivered a warehousing and logistics site into an increasingly constrained market at the right time demonstrating our credentials as strategic land specialists.”
Gareth Williams, development director at St Francis Group, said: “This sale highlights the expertise within the Group and the wider Joint Venture to unlock technically challenging brownfield sites, and to complete significant highway and service infrastructure to create a development ready site capable of immediate development.
“Having jointly invested significant funds to achieve this in time to capitalise on rising demand for serviced land, we are delighted to have completed this sale to BGO and to have secured a programme of speculative development at Horizon29.”
Gareth Purcell, Managing Director at BentallGreenOak, said: “We are delighted to have closed on the acquisition. The first phases of the site already benefit from Reserved Matters planning consent and we will be commencing speculative development works on site during Q2 with the first units completing by year-end.
“This deal, which completed on Christmas Eve, closes out a very busy year for BGO’s UK logistics platform, with us having acquired land to deliver c. 5m sq ft of new logistics space with our partners at Equation Properties in addition to a further 3.7m sq ft of standing assets across a total of 12 separate transactions.”
BLL was advised by JLL and Clyde & Co and BGO and Equation were advised by Burbage Realty and Taylor Wessing.
Survey finds South East Midlands businesses remain resilient despite economic challenges
The South East Midlands Local Enterprise Partnership (SEMLEP) has published the results of the 2021 Business Survey, identifying the economic challenges and opportunities facing businesses in the area.
The biennial survey, conducted over October and November 2021, engaged with over 1,800 local businesses to identify economic issues and opportunities to support the growth of local businesses and the local economy. The key trends identified include:
Business Location: The South East Midlands continues to be rated increasingly highly as a place to do businesses, with various aspects presenting positive opportunities to attract inward investment.
- 75% of businesses rated the South East Midlands region as a ‘good’ or ‘very good’ place to do business (69% in 2019).
- 26% of businesses said performance had improved over the past 12 months (40% in 2019) while 34% said it had deteriorated (20% in 2019)
- Over the coming year, businesses are more likely to expect improvements than further deterioration (40% vs. 15%).
- 28% of businesses had vacancies in the last 12 months (39% in 2019)
- 17% had hard-to-fill vacancies (18% in 2019)
- 16% reported skills gaps amongst current staff (25% in 2019)
- 7% have an apprentice (12% in 2019)
- 21% of businesses innovated in the last 12 months (26% in 2019)
- 46% of businesses have the intention of being more sustainable, but only 11% have a specific target or aim to achieve net-zero
- 27% of businesses are actively adopting inclusive recruitment practices
Derby telecoms specialist recognised as ‘NHS hero’ for its support during the pandemic
Derby communications and telecoms specialist EVAD has received national recognition for its role in supporting the NHS during the pandemic.
EVAD’s Think Healthcare service has made access to healthcare simpler for patients by freeing up time and capacity at busy GP surgeries across the country.
The company, which has seen its integrated telecoms service now become best practise within many NHS trusts supporting over 200 GP surgeries, saves an average of 200 administrative hours a year per practice for staff and has been awarded the General Practice Telecoms of the Year Award which celebrates excellence and innovation in healthcare.
Coming at a time when GP surgeries are over stretched with increased demand the technology makes it easier for surgeries to support patients, increase capacity and free up staff time to alleviate added burdens and provide a better service.
In its 14th year, the General Practice Awards celebrate the very best within the healthcare industry and according to their website “recognise the national NHS heroes carrying out work on a daily basis to help others.”
Katie Saunders joins Devonshire Group as People Director
Katie Saunders has been appointed as Group People Director at the Devonshire Group, the company that represents the interests, charities and businesses of the Duke and Duchess of Devonshire.
Having been operating at board level for the past 15 years in High Street retail and during 20 years in the motor industry, including Volkswagen UK and Audi UK, Katie Saunders joins the Devonshire Group with responsibility for more than 1400 employees spread across 65,000 acres at Chatsworth in Derbyshire, Bolton Abbey in Yorkshire, the Compton estate in Sussex, and Lismore in the Republic of Ireland.
Katie Saunders said: “I’m genuinely excited by the challenge. My experience is very broad, which I think will be important given the Devonshire Group includes such a variety of businesses from visitor attractions, shops, restaurants and luxury accommodation to farming and forestry, and property development.
“Although there are many different job roles and responsibilities, it’s very clear that there is a strong, shared passion for the organisation and its values, at all levels. Part of my role will be to share my experience and expertise in Learning and Development, and particularly Management Development and Leadership, to enable everybody to make the very best of their skills and reach their full potential.”
“Some great work has been done to introduce young people and apprentices to the Devonshire Group through the Kickstart scheme and there’s more to come. To be an employer of choice we need to listen to our team and respond to their concerns so I’ll certainly be looking at issues like wellbeing and diversity to see what more we can do to further develop a modern, motivated and committed workforce.”
Brought up in Doncaster and now living in Chesterfield, Katie Saunders and her husband are frequent visitors to the Peak District and keen foodies. “We know Chatsworth well and often take walks across parts of the estate. For many years I’ve experienced first hand the professionalism, commitment and good humour of the people who work here – this really is my dream job,” she said.
Regatta Way works to start in January 2022
Works are set to begin in January on a new cycle and footpath on Regatta Way in West Bridgford.
Once complete, pedestrians, cyclists and other footway users will benefit from an upgraded two-way route which will run from A6011 Radcliffe Road to Adbolton Lane, where it will join with the existing shared cycle and footway.
Works on the new route, which will connect residential areas to facilities at Holme Pierrepont Country Park, will include the creation of a cycle track that is segregated from both the pavement and the road.
Via East Midlands, who manage Nottinghamshire’s highways on behalf of the county council, will begin works on-site on Monday 10 January 2022.
Councillor Neil Clarke MBE, Chairman of Nottinghamshire County Council’s Transport and Environment Committee, said: “It is great to hear that works on this scheme will be starting early in the New Year.
“I was pleased to hear that this scheme had strong local support and it is our hope that the creation of this new cycle and footway will help to embed walking and cycling into daily lives.
“The scheme will cost around £1.24m to construct and will be funded from the £2.178m that the county council successfully secured from the Government’s Active Travel Fund.
“There are so many benefits to walking and cycling, including cleaner air and less congested roads, and we are delighted to be delivering a scheme which will help local people to enjoy both of these safely.
“We know that news of works on the highway may cause concern about possible disruption, but we and our colleagues at Via East Midlands will endeavour to keep communities up-to-date while aiming to keep disruption to a minimum.”
“I hope these efforts will result in a great facility and I am confident that road users will be pleased with the final result.”
More information about the Active Travel Fund and schemes in Nottinghamshire can be found at: Active Travel Fund – Tranche 2 | Nottinghamshire County Council
